Group Sells Mechanical Engineering Division To Matthews International Corporation

Borgers SE & Co. KGaA sells its mechanical engineering division with the companies OLBRICH GmbH and R+S Automotive GmbH to Matthews International Corporation, a global provider of industrial brand solutions and commemorative products based in Pittsburgh, Pennsylvania (USA).

This strategically and economically reasonable step opens up new opportunities for the companies to implement their planned growth strategy: “With the sale of and R+S to Matthews International Corporation, we have achieved the desired viable solution for the further development of our mechanical engineering explains Jürgen Otto, CEO and Chairman of the Executive Board of SE & Co. KGaA. “Despite the difficult economic conditions, there was a great deal of interest in the Olbrich Group and we are confident that we have found
the ‘best-owner’ in Matthews International. Both companies already have extensive experience in electromobility projects in which the technological and cultural fit has
been proven. As a long-term investor, Matthews International has already successfully demonstrated in many other cases – for example with the SaueressigGroup, also based in Münsterland and an expert in the printing and finishing industry that it intends to sustainably develop an acquired company.”

Globally active – worldwide successful
Matthews International Corporation brings together a variety of different companies and brands under one roof and employs approximately 11,000 people in more than countries on six continents. Business activities are divided into three focuS The “Industrial Technologies” segment develops, manufactures, services and sells specific high-tech solutions in the fields of energy storage, industrial
automation and marking and coding systems.

In the “SGK Brand Solutions” segment, Matthews International is an important provider of packaging solutions and also a service provider for the development, strengthening and implementation of new brands and products. The third segment, “Memorialization,” offers leading products for mourning and memorial culture, such as mausoleums or memorial stones, as well as coffins and
funeral props.

Acquisitions are part of a long-term strategy Joseph C. Bartolacci, President and Chief Executive Officer of Matthews International, stated, “We are extremely excited to announce the acquisitions of
OLBRICH and R+S Automotive as part of our long-term strategy to provide turn-key processing equipment and services for the burgeoning electric vehicle industry. We see our combined capabilities as a unique offering that will have significant impact onthe electric vehicle market and benefit the entire energy solutions industry. Together, these acquisitions are an important investment and part of a buying strategy to solidify our place as a key player in the fast-growing energy sector.”

Gregory S. Babe, Chief Technology Officer of Matthews International, continued,“Our combined engineering capabilities provide an extension of our full portfolio,including battery and fuel cell component production, converting lines, coating,drying, web and roll handling and Automated Guided Vehicles (AGV) integration, and
strengthen global expansion. This strategic acquisition continues our investment in technologies and accelerates commercializing new innovations and combined capabilities across multiple automotive, surfaces and industrial automation applications.”

Common values and goals

“With Matthews International, we have not only gained a strategic investor, but at the same time a partner for the OLBRICH Group that has an excellent international reputation,” explains Bastian Kuhl, CEO of OLBRICH and R+S Automotive. “In addition, we share common values and goals. – These are the best prerequisites for effectively combining our competencies in the fields of converting and automation hence successfully addressing future markets such as new energies or “green packaging” together. We look forward to implementing our growth strategy in the future as part of the Matthews Group.” The agreement to acquire the Olbrich Group for a purchase price of USD 45 million (around EUR 43 million) was signed yesterday, Tuesday, June 21, 2022, after which the employees were informed by the contractual partners. The closing of thetransaction is subject to certain regulatory authority approvals, which is expected to be timely secured in July of 2022.

In parallel, the sale of the automotive division of Borgers is being driven forward. Notwithstanding the aggravating conditions due to the Ukraine conflict, this process remains on schedule. The management of Borgers SE & Co. KG is in talks with several interested parties and also intends to conclude this sale by the end of July as planned.

Drives Electrification With More Sustainable Material Solutions

From renewable energy to charging equipment and battery concepts

Energy supply from wind and solar power is an important pillar for achieving global climate targets and greenhouse gas neutrality and conserving fossil resources. The switch from fossil to renewable energy sources is also accompanied by electrification of the important sectors of transport and buildings: the mobile and stationary future is electric.

A major challenge here is decentralized electricity storage to compensate for fluctuations in the generation of wind and solar energy. Plastics will play a central role in all these issues in the future – from power generation and storage to use in vehicles and at home. Covestro will be showcasing a full range of innovative and more sustainable material solutions at the K 2022 trade fair in Düsseldorf, Germany, from October 19 to 26.

Renewable energy on the rise
Take wind power, for example: an innovative polyurethane (PU) resin enables more efficient and cost-effective production of robust rotor blades. Covestro is working with key industrial partners to roll out this new resin technology for blade composites. The product portfolio also includes PU elastomers for offshore wind farms, which ensure kink-protected power cables and thus smooth transmission of electricity to the mainland.

Covestro is also gradually converting its global production to energy supply with green electricity. To this end, the company has signed supply agreements with European suppliers Ørsted to supply its German sites and with ENGIE for its production in Antwerp, Belgium; in both cases, the electricity comes from wind power. In Germany, Covestro has also contractually secured a long-term supply of solar power – 63 megawatts of capacity – from the country’s largest solar park operated by energy company EnBW in Brandenburg. In China, Covestro also purchases solar power from the local supplier Datang Wuzhong New Energy Co. Further supply contracts for electricity from renewable sources are planned.

Energy storage challenge
The switch to renewable energy will create a major need for additional energy storage worldwide in the long term. Various storage solutions are being developed for electricity from renewable sources front-of-the-meter – immediately after generation – and behind-the-meter – before use in vehicles, buildings and industry. They will become part of a new infrastructure that includes, in large part, batteries and controllers for electric vehicles, but also stationary solutions such as charging stations and wallboxes, as well as batteries for domestic power supply.

The design of the battery in particular – the heart of the electric car – places great demands on the properties of the plastics used, especially since many cell holders have to be very well fixed in a confined space to ensure maximum range and safety of the vehicle. Covestro has developed a concept for this based on lightweight and robust polycarbonates and their blends, which also includes the production of modules, housing parts and crash absorbers for the batteries, as well as control units in the electric powertrain of the vehicle. The plastics are dimensionally stable, electrically insulating and offer a great deal of design freedom, while complying with the required high safety standards demanded by the industry and environmental guidances.

These properties of polycarbonate plastics are also beneficial in their application in charging stations, wallboxes and battery home storage systems. Covestro supports customers from material selection to component design and CAE-based simulation calculations, as well as mold flow analysis and injection molding.

On the way to a circular economy
For the applications mentioned above, Covestro now also offers polycarbonates that are climate-neutral from cradle to factory gate1. They are produced using ISCC PLUS certified raw materials from mass-balanced biowaste and residual materials and using renewable energy. As a result, they have the potential to reduce the carbon footprint to zero.

Post-industrial waste from polycarbonates and their blends can be reused, reprocessed or recycled just like plastics after their useful life (post-consumer). To close the loop, systems for collecting, sorting and processing plastic waste, among other things, still need to be established.

Covestro has also created a much more sustainable basis for the production of two important polyurethane raw materials, the so-called isocyanates TDI and MDI, by using alternative raw materials. While the renewable TDI is based on mass-balanced and ISCC PLUS-certified precursors from biowaste and residual materials, MDI is also offered as a climate-neutral product from cradle to factory gate.

Trend-Setting Trade Show Appearance At the K 2022 In Düsseldorf, Germany

Circular Plastics For Green Growth Markets

• Covestro as a pioneer for circular economy and climate neutrality
• Global approach with alternative raw materials, renewable energy and innovative recycling
  New concept for circular products

At K 2022, Covestro will showcase the possibilities of particularly sustainable plastics for the world and tomorrow’s growth markets. To this end, the company will soon be presenting new products and materials for many key areas that support the circular economy and climate neutrality at the world’s largest plastics trade show. In this regard, Covestro sees itself as an industry pioneer and is focusing above all on future-oriented, creative partnerships. International media now got a foretaste of the trade show appearance in October at a press conference in Düsseldorf, Germany.

“Mankind is facing enormous challenges. In addition to acute crises, we need to overcome long-term challenges such as protecting the climate, nature and resources and thus safeguarding our livelihoods,” said CEO Dr. Markus Steilemann. “This can be achieved if business and society consistently orient themselves towards the circular economy. Plastics are indispensable on this long journey, and Covestro is pleased to contribute particularly sustainable new products and materials to this end, tailored to the customer needs of today and tomorrow. Together with our partners, this is how we intend to seize the immense opportunities for sustainable growth.”

“Crafting Connections With You”
Under the motto “Crafting Connections With You”, Covestro intends to establish new collaborations with customers and partners and strengthen existing ties at booth A 75 in Hall 6 at K 2022 from October 19 to 26, as well as on a digital platform. “Collaboration along key value chains in particular is of great importance for the vision of a full circular economy to succeed,” said Dr. Andrea Maier-Richter, Global Head of the TPU Business Entity. “With our more sustainable developments, we support our customers and partners in facilitating their transition to the circular economy and achieving their own climate goals.”

To make circular solutions in the product portfolio even more recognizable to customers in the future, Covestro has developed the “CQ” concept. The brand suffix stands for “Circular Intelligence” and indicates the alternative raw material base for the company’s products if it is at least 25 percent. Among the first “CQ” products is Desmodur®CQ. Polyurethane foams based on Desmodur®CQ are used, for example, in upholstered furniture, mattresses and thermal insulation.

Moving away from fossil resources
Covestro primarily uses mass-balanced, renewable precursors and plastic waste as alternative raw materials, as well as green electricity. To realize its vision of a circular economy and achieve its ambitious climate targets, the company is also focusing on the future supply of “green” hydrogen and the development of innovative recycling technologies.

All these measures help conserve fossil resources and avoid CO2emissions. In the long term, Covestro aims to offer all its products in a climate-neutral1 version. By 2030, the company plans to invest around one billion euros in circular economy projects. To achieve net zero emissions, Covestro also expects to invest between EUR 250 million and EUR 600 million by 2030.

The high-performance plastic polycarbonate and the important polyurethane (PU) raw material methylene diphenyl diisocyanate (MDI) are already available in larger quantities as climate-neutral products. Like the renewable PU raw material toluene diisocyanate (TDI), they are manufactured using renewable2 raw materials such as new biomass and biowaste and residual materials, which are allocated to the products by calculation using the mass balance approach. According to a common calculation model1, no net CO2 emissions are generated during production from the cradle to the factory gate.

For its own raw material supply, Covestro cooperates with a number of industrial partners who provide renewable precursors such as mass-balanced acetone, phenol and benzene. Suppliers such as Borealis, Total, Mitsui Chemicals and Mitsui & Co. produce these raw materials at sites certified to the internationally recognized ISCC PLUS standard. At the same time, Covestro is gradually converting its production sites to this standard, which is already the case in Leverkusen, Dormagen, Krefeld-Uerdingen, Antwerp and Shanghai.

Most recently, Covestro announced a collaboration with Neste and South Korean petrochemical company SK geo centric to supply mass-balanced benzene for its MDI production in China. MDI is an important raw material for rigid PU foam, which provides efficient insulation for buildings and the cold chain. Certified polycarbonate, in turn, plays a role in the automotive, electrical and electronics, and medical industries, among others. And TDI is a precursor for PU flexible foam, which is used to make mattresses and upholstered furniture.

Covestro has also signed contracts with energy suppliers such as Ørsted, EnBW, ENGIE, Datang Wuzhong New Energy and others to supply sites in Germany, Belgium and China with electricity from renewable sources.

Innovative technologies for chemical recycling
Hermann-Josef Dörholt, Global Head of the Performance Materials segment, emphasized the great importance of recycling technologies in order to really close loops: “Covestro is taking a committed approach here: using various approaches, we can specifically recover the raw materials we need for the production of our plastics. In addition to the established mechanical recycling of polycarbonate and thermoplastic polyurethane, we are focusing primarily on chemical recycling for this purpose.” The aim, he says, is to recycle materials completely in order to save fossil raw materials and CO2 emissions, while at the same time offering recycled products in virgin material quality.

As examples, Dörholt cites innovative processes for the chemical recycling of mattress foam waste and used rigid PU foam. Together with partners, Covestro has developed a process to chemically recover the two main components from PU mattress foam: the polyol and the precursor to the isocyanate TDI used. The results of the tests conducted to date are promising and are currently being tested in a pilot plant at the Leverkusen site. The project is now to be extended to the industrial processing of flexible foams.

Covestro is also coordinating the EU project CIRCULAR FOAM with 22 partners from nine countries, which is dedicated to the chemical reprocessing of rigid polyurethane foam from building insulation materials and used refrigeration equipment. The products make an important contribution to saving CO2 emissions and reduced energy consumption, but recycling processes and systematic waste management have been lacking until now. The project aims to save up to one million tons of waste and 2.9 million tons of CO2 emissions annually in Europe by 2040.

Develops Innovative Recycling Technologies

From mechanical remanufacturing to raw material recycling and beyond

Far too much plastic still ends up in the trash. Although the recycling rate has increased in recent years, it is still only 14 percent worldwide. Used plastics are a valuable resource in this respect. Covestro wants to align itself comprehensively with circularity and help make it the global guiding principle. To achieve this, the company develops innovative technologies to reuse plastics and return them to the value cycle – often in close cooperation with partners.
The goal of a new collaboration with the Zurich-based bag company FREITAG is the unlimited recycling of truck tarps, based on thermoplastic polyurethanes (TPUs) from Covestro. At the end of their useful life, the tarps are to be recycled mainly chemically and used for new tarps or other products. It is important for the success of the project that the tarps are similarly robust, durable and water-repellent as the previous products. FREITAG expects it to be a few years before bags made from the tarps are mass-produced, but plans to put a first prototype on a truck as early as this year.

Sorting of plastics by type
At the K 2022 trade show, Covestro will present these and a number of other developments for the unmixed recycling of used plastics. The company’s focus to date has been on proven mechanical recycling, in which the plastic is chemically preserved, and more recent chemical recycling processes, in which the polymer molecules are broken down chemically. Other technologies of such raw material reprocessing – specifically enzymatic and pyrolytic – are under development.

Mechanical recycling is particularly suitable for polycarbonates. Numerous corresponding products from Covestro are already on the market, including polycarbonate blends for IT applications with up to 75 percent recycled material – besides products based on mass balanced raw materials. To facilitate recycling, the company is increasingly relying on monomaterial solutions for end products that feature simplified material separation. In addition, new plastic products are designed from the outset to be easier to recycle at the end of their useful life.

Chemical recycling on the rise
Polyurethanes (PU) and other thermoset products usually cannot be mechanically recycled. Chemical processes are the obvious choice here. Covestro has developed an innovative technology for recovering both core raw materials PU mattress foam as part of a research project with partners. These are polyols and the isocyanate TDI, which are used in the production of mattress foam. The precursor is recovered from the TDI, and both raw materials can be reused for the production of new foam after reprocessing. The results achieved to date are being tested in a pilot plant at the Leverkusen site. Covestro has now introduced the Evocycle® brand name for the project.

To drive the project forward and close recycling cycles, Covestro is cooperating with partners from the chemical and recycling industries. Together with Interseroh, an ALBA Group company, opportunities are to be developed for the collection and processing of the recyclables so that they can ultimately be supplied to Covestro for chemical recycling. Covestro is pursuing a similar goal in its cooperation with the French environmental protection organization Eco-mobilier, which specializes in the collection and recycling of old furniture.

Used PU rigid foams, which provided efficient thermal insulation for buildings and refrigeration equipment, should also be able to be broken down into their constituent parts again by means of chemolysis or even pyrolysis. This is the goal of the CIRCULAR FOAM research project with 22 industrial partners from nine countries, coordinated by Covestro. Over the next four years, experts from science, industry, and society want to develop a comprehensive solution model for the waste management and recycling of such foams.

Here, too, the aim is to recover both raw materials originally used – polyols and an amine used as a precursor for the isocyanate MDI. If the material cycle is successfully closed, up to one million metric tons of waste, 2.9 million metric tons of CO2 emissions and 150 million euros in incineration costs could be saved in Europe every year from 2040.

New Resin Offers Exceptional CTI and FR properties for ultra-thin-wall insulation film in high-voltage EV batteries

SABIC, a global leader in the chemical industry, today introduced NORYL NHP8000VT3 resin, a product well suited for insulation film used in electric vehicle (EV) battery modules to help improve protection against short circuits and fire propagation. This high-performance, polyphenylene ether (PPO)-based resin is engineered with patented technologies to help meet the stringent demands of higher-voltage batteries (600-800 volts). It achieves the highest comparative tracking index performance level category (CTI PLC0), provides ultra-thin-wall extrusion and thermoforming capability, and meets the UL94 V0 standard at 0.25 mm with non-brominated, non-chlorinated flame retardance. NORYL NHP8000VT3 resin provides a novel solution to the drawbacks of incumbent insulation films made with polycarbonate (PC) and polypropylene (PP) by delivering stronger CTI performance and thinner-wall FR capability. This exceptional material can help advance EV battery technology by contributing to occupant safety, weight reduction and higher efficiency for extended range.

SABIC will be featuring its new NORYL NHP8000VT3 resin at The Battery Show Europe 2022 in Stuttgart, Germany, June 28-30 (Hall 8, Booth F10), and will be showcasing an array of insulation film and thermoformed parts.

“Transitioning from standard, 400-volt EV batteries to higher voltages offers the potential to shorten charging times, extend range and improve energy management within the vehicle,” said Joshua Chiaw, director, Business Management, LNP & NORYL, Specialties, SABIC. “However, designing higher-voltage batteries requires the invention of breakthrough materials, such as our new NORYL resin for insulation films. This new solution is the industry’s first thermoformable material to achieve the highest CTI performance level as well as meeting stringent flame retardancy standards. SABIC continues to focus intensively on developing innovative material solutions that can propel e-mobility adoption by addressing safety, performance and range anxiety challenges.”

Highest CTI Performance Level Category for Higher-voltage Batteries
The CTI PLC, which indicates the maximum voltage a material can withstand without developing tracking, is used to evaluate electrical insulators under exposure to conditions of stress, humidity and contamination. NORYL NHP8000VT3 resin achieved the highest CTI performance level category of 0 in testing by an independent laboratory, indicating it can withstand 600 volts and greater. While some PP grades can also achieve CTI PLC0, these materials are more difficult to thermoform, often requiring the application of secondary processes to achieve complex shapes. Furthermore, NORYL NHP8000VT3 resin delivers better mechanical strength than PP at 0.25mm thickness. Polycarbonate, the other incumbent battery insulation material, typically cannot achieve CTI PLC0.

Ultra-thin-wall Flame Retardance for Space Savings
NORYL NHP8000VT3 resin’s ability to meet the UL94 V0 standard at 0.25 mm means it can provide a high level of flame retardance at a thinner film gauge than PC or PP, potentially freeing up valuable space in the battery pack. Compared to PC, NORYL NHP8000VT3 resin features up to 40 percent weight reduction due to its lower specific gravity and thinner-wall FR capability. This capability can also potentially benefit other EV applications. For example, the new NORYL resin may be a candidate for the insulation of metal EV busbars, using overmolding or insert molding processes.

“The NORYL NHP family is our next-generation PPO portfolio with enhanced FR performance,” said Jenny Wang, director, Formulation and Application, APAC, Specialties, SABIC. “It includes NORYL NHP6011 and NHP6012 resins for battery modules and housings. Our new NORYL NHP8000VT3 resin further diversifies the series with more-robust CTI performance. To help support the acceleration of future electric vehicle battery designs, we have raised the bar in CTI PLC values and thin-wall flame retardant performance suitable for insulation materials. This achievement attests to our broad and deep technical knowledge and resources, and strong commitment to continuous innovation.”

Development and performance go hand in hand

Focus on waterborne and efficient coating systems

Covestro will showcase new polyurethane (PU) coating systems and films at this year’s Techtextil trade show in Frankfurt, Germany, that are more sustainable and environmentally compatible in terms of raw materials, processing, and properties. “For example, we will be presenting new PU dispersions as binders for digital textile printing and a new two-component (2K) PU high solid system of our INSQIN® technology for textile coating,” explains Thomas Michaelis, Head of Textile Coating in the Europe, Middle East, Africa and Latin America (EMLA) region at Covestro. In addition, Covestro’s booth will focus on variants of Dureflex® TPU films, which are skin-compatible and guaranteed free of harmful substances according to the OEKO-TEX® Standard 100.

Good haptics and durability with high color intensity

Digital textile printing enables economical production of small batches, shortens time-to-market, and reduces waste volumes by up to 85 percent compared to analog printing technologies. PU dispersions are currently establishing themselves in the production of inks for digital inkjet printing processes because, among other things, they enable a stable printing process due to their low viscosity and particle size. With Impranil® DL 1602, Covestro is launching a new anionic, aliphatic-based PU dispersion that can be used to formulate water-based pigment inks for digital inkjet printing. The dispersions show excellent stability at high shear rates. They produce very finely divided ink dispersions with good jetting behavior that are characterized by high re-solubility. “This minimizes the risk of the pressure nozzles becoming clogged. Long and therefore economical runtimes in printing are the result,” explains Dr. Inga Bargende, Digital Printing Expert at Covestro. Other strengths of PU-based inks include good abrasion and rub resistance and high color and wash fastness.

Long pot life and high grain stability

The new INSQIN® 2K PU system consists of Impranil® HS 1062 and Imprafix® IO 3330. It mainly targets synthetics for car interiors. The High Solid system does not require blocking agents. “Nevertheless, it is characterized by long pot lives during processing. This means, for example, that the processor does not necessarily have to use PU mixing heads. It also gives the grain a high degree of stability and is particularly resistant to hydrolysis,” explains Michaelis. Potential applications include instrument panels, seats, door panels, or steering wheels.

Certificate for TPU films free of harmful substances

Several TPU (thermoplastic polyurethane) films in Covestro’s Dureflex® product line have now been certified to the 100 by OEKO-TEX® standard. The films are breathable, waterproof, tear-resistant and, above all, kind to one’s skin. That makes them the material of choice for sports articles and outdoor clothing, but also for furniture and seat covers for cars. In 2019, several Platilon® brand TPU film grades have already been certified to the standard.

Covestro will also be showcasing its partially biobased Platilon® H2 EC hotmelt film at Techtextil. “It exhibits excellent adhesion during lamination, is very heat resistant and easy to process. Applications include textile labels, sealing strips, laminates made of glass and aluminum, and conductive tracks for the textile and automotive industries,” explains Dr. Elmar Lins, Segment Manager Consumer & Industrial Solutions Specialty Films for the EMLA region.