PP2-029V1N4Apr02 - Natural Wood Fibre & Composites

COPYRIGHT 2002 PRINCIPIA PARTNERS

Inside this Issue...

Natural fiber taking aim traditional fillers Page 2

Foamed PP decking Page 2

New vinyl compositesfrom Edge, Lesco,and Doeflex/Vitapol Page 3

Flexform charges aheadwith new applications Page 4

IP selling WPC business Page 4

Events calendar Page 5

Decorative panels Page 5

Higher throughputfrom new twin-screws Page 5

American Wood Fibersand Battelle team up Page 6

In the next Issue...

Advances in equipment andprocessing...

Growing supply of merchantWPC compound...

Government and academiainitiatives in WPC...

Building Products Infrastructure Ind/Consumer Transportation0

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500 Million lb 125 Million lb 60 Million lb 80 Million lbCurrent WPC Mkt

1,085 Million lb 160 Million lb 90 Million lb 135 Million lbProjected WPC Mkt

Source: Principia Partners

April 30, 2002 Volume I, Number 4

Industrial Uses Loom As Large OpportunityWPC Market Extends Beyond Building Products & Transportation

Most of the attention in the WPC market has focused on building products -primarily decking and railing - and transportation applications. While thesetwo major industry segments account for the significant portion of overalldemand for wood-plastic composites, the untapped potential across manyindustrial and consumer uses is sizeable.

The industrial/consumer segment includes a range of applications from parkbenches and trash receptacles to pallets and tote bins. This market consumedroughly 60 million lb of these products last year, or less than 10% of the overallmarket volume in 2001,according to PrincipiaPartners.

Natural and wood polymercomposites are, in mostcases, a more expensivematerial than incumbentproducts, but offer lower lifecycle cost in manyapplications. Thesematerials are not high-performance products, butoffer acceptable performance in each application served. In certainapplications, where moisture and insect resistance are important, the materialsoffer improved performance over wood. One distinct advantage of thesematerials is the environmentally friendly use of waste feedstocks.

All types of polymer types are used to produce natural & wood compositesconsumed in this market although polyethylene dominates like it does in othermarkets. Polypropylene is considered by many WPC producers to be the likelymaterial of choice for many industrial/consumer application due to thematerials versatile performance profile, easy to mold or extrude processingfeatures, and likely available supply, especially as reclaim supply tightens forpolyethylene.

With increased commercial and technical activity aimed at industrial/consumerapplications, the projected increase from 60 million lb of WPC demand in 2001to just under 100 million lb by 2007 could rise even more significantly (seechart). After building products and infrastructure applications, theindustrial/consumer market offers the most potential demand for WPC withover 1.5 billion lb of addressable volume. The challenge is placed with WPCproducers to target traditional wood, concrete, metal, and even plasticsreplacement opportunities for wood-plastic composites.

Vol. 1, No. 4/Page 2 NATURAL & WOOD F IBER COMPOSITESNATURAL & WOOD F IBER COMPOSITES April 30, 2002


NATURAL & WOOD FIBER COMPOSITESNATURAL & WOOD FIBER COMPOSITES

For Subscription or Editorial inquiries:James T. Morton, EditorP.O. Box 611Exton, PA 19341484-459-2239; 484-214-0172 (Fax);[email protected]

Natural & Wood Fiber Composites is published 12 times ayear by Principia Partners. World rate is US$700; discountavailable for electronic delivery. A subscription entitlesreaders to share this newsletter with any colleagues at thesame physical address. Please contact publisher foradditional off-site subscriptions.

Publisher and Editor-in-chief James Morton

Products & Materials

Natural Fiber Aimed at Traditional FillersRayonier Introduces TerraCel

Rayonier (Jesup, GA), has developed a high-puritycellulose fiber derived from local hard and soft woods.What makes the 1- to 2.2-mm-long, 20- to 40-micron-diam. TerraCel wood fibers different is their high (95%or above) content of pure alpha-cellulose. Generally,wood contains less than 50% alpha-cellulose togetherwith lignin and othercomponents that impairthe fibers' physical andthermal properties.

John Underwood, Rayonier's market-developmentmanager, says a 30%-reinforced PP composite usingthese wood fibers can achieve stiffness exceeding thatof mineral-filled PP and approaching short-glassreinforced compounds. In Europe, TerraCel compositesare in advanced testing by independent compoundersfor automotive OEMs. The fibers have a density of 1.25to 1.5 g/cc, which typically is more than 50% lighter thanglass or mineral reinforcements. In addition, the fibersare non-abrasive, resistant to breakage in numerousreuse cycles, and free of residual ash when incinerated.

Equally important, the high cellulose level in Rayonierfibers boosts their ability to resist degradation up toaround 527 F. Conventional wood flours and fiberstypically withstand no more than 392 F. Consequently,conventional wood reinforcement has been largelyrestricted to PP matrix materials.

Rayonier's wood fiber is being used at 30% levels innylon 6, which has a melting point of around 437 F. Amodified screw design keeps peak temperatures belowthe fibers' degradation point. Nylon 6 broadens thepotential of fiber-reinforced compounds in more severeend-uses, Underwood claims. He says compoundersare also developing 30% wood/mineral-filled nylon 6hybrid compounds as potential replacements for mineral-and short-glass reinforced compounds in under-the-hood and semi-structural applications.

Rayonier: John Underwood, 912/427-5491

Innovations in WPC DeckingPP Foam Technology Employed by Mikron

Mikron (Kent, WA) recently introduced a compositedecking product usimg a thick unfoamed support layeroutside and a foamed composite core of 0.3-0.5 g/cc.Composites with less wood fiber are generally easier tofoam than more highly loaded ones, but wood-fiber typeand size play a role. Longer fibers give the compositestrength but also give the foaming gas a pathway toescape.

The firm utilizes virgin PP for its recently introducedfoamed composite decking. Merchant suppliedhardwood and softwood fibers are used for both productareas. Mikron's PP decking is coextruded with a highlywood-filled solid skin over the foamed composite core. The outer shell has a specific gravity of just over 1.0g/cc and makes up roughly 50% of the profile. It givesthe profile sufficient strength to span up to 24 in.

Foaming in general reduces the stiffness and flexuralstrength of a profile. A foamed profile typically willhave a third to a half the flexural strength of the same orsimilar non-foamed material, says Chuck Cannon,director of business development. Foaming is easierwith amorphous polymers like PVC than with crystallineones like PP or PE. Amorphous polymers generally havebetter melt strength, but crystalline resins have lowerviscosities and accept higher filler levels. More viscousamorphous polymers make it more difficult to wet outwood flour and disperse it evenly, although hold gasbubbles better. Foaming hurts the stiffness and flexuralstrength of polyolefins more than that of PVC since vinylis more compatible with wood fiber.

Mikron: Chuck Cannon, 253/854-8020

April 30, 2002 NATURAL & WOOD F IBER COMPOSITESNATURAL & WOOD F IBER COMPOSITES Vol. 1, No. 4/Page 3


Source: Doeflex/Vitapol

Products & Materials (Contd)

Vinyl Composites Finding New UsesDevelopments Coming from Around the World

Edge Building Products (Newport, PA) has introducedthe industrys first vinyl composite trim board under theStabilex brand. The composite contains high-strengthfibers that are an agricultural byproduct. Stabilexcontains more than 50% recycled content which issourced from Edges primary product - trim boards madefrom cellular PVC sold under the Permatrim brand. Currently, Stabilex products currently are sold onlyalong the East Coast, although plans to roll the productout nationally are on the board for later this year.

Edge, with sales of approximately $7 million in 2001, hasbeen in business since 1997, and operates from twolocations in Newport near Lancaster, PA. The firm hasfive extrusion lines (both dual extrusion and single-strand extrusion) in one location, while the other facilityis used as a blending and treating location for fiber andrecycle streams. Rapid growth for the companys trimboard products has led to a recent decision to install adual extrusion line by early summer 2002 that canaccommodate cooling problems typically associated withsingle-strand extrusion systems.

The Stabilex technology is also used in such semi-structural applications as I-beams and other semi-structural parts used in deck or dock substructureswhere resistance to moisture, insects and rot is needed. The company hopes that a fairly large market for suchproducts exists, especially given the recent restrictionson chromated copper arsenate-treated lumber.

Stabilex is produced and formulated under license fromMicrocellular Technologies (Lancaster, PA). Thetechnology is available for licensing for suchapplications as composite decking profiles. Jeff Nesbitt,a principal in both Edge and Microcellular Technologies,is the key contact to discuss licensing opportunities.

Edge Building Products: Bob King, 717/567-2311

Lesco Technology (Singapore) recently introduced aPVC-based wood composite under the Lesco brand. Thecomposite is derived by combining recycled wood wastewith PVC resin, and producing a granular compound. The company can extrude and injection mold the materialinto a wide range of interior and exterior buildingproducts (e.g., profiles, trim, molding) in a variety ofdimensions, shapes, color, and wood grain finishes.

The products are produced in a near-zero waste single-step process that does not use paper foils or laminates. The composite has the bending and compressionstrength similar to PVC along with a higher melttemperature which makes it suitable for both indoor andoutdoor use. It also has good resistance to UVexposure, can be nailed, screwed, or stapled, and can bespecially formulated with enhanced properties like highimpact strength. The company says that the compositehas bending and compression strengths similar to PVCas well as a higher melting temperature, making itsuitable for indoor and outdoor use.

Doeflex/Vitapol (United Kingdom), the PVC division ofVita Thermoplastic Compounds Limited, has developedTimbercel - a PVC compound with a 30% to 50% woodflour content. Thecompany says that thenew product offers anumber of advantages,including that it is foamedduring extrusion and canproduce lengths of PVCthat exhibit many of theattributes of machinedwooden strips. Timbercelis said not to degrade because the organic cellularstructure of the wood is bound up in a matrix of PVC. Itcan be drilled, screwed or nailed and it is recyclable. Thematerial will also exhibit a certain level of fire retardance,says the company. Applications include building andconstruction uses, such as window frames, decking andcornicing.

According to Doeflex/Vitapol's managing director DavidOuten, the development of Timbercel is part of the company's efforts to find new and improved uses forPVC. He adds that he does not see PVC as being amature product, but one that is still open to excitingdevelopment opportunities.

Doeflex/Vitapol: David Outen, +44 1793 442442



Company News

Flexform Continues to InnovateExtending beyond Automotive

Flexform Technologies (Elkhart, IN) is the former KafusBio-Composites business which was a part of KafusIndustries prior to early 2001 when the business wentinto bankruptcy. Kafus Bio-Composites was asubsidiary of Kafus Industries, the largest NorthAmerican grower and processor of kenaf, which is similarto cotton. The kenaf fiber used in manufacturing at itsElkhart, IN plant is processed at kenaf operations inLasara, TX which were formerly owned by KafusIndustries.

Flexform, manufactures natural fiber polymer compositeprecompounded sheets or mats used by automotive, RV,office furniture, and other manufacturers of compressionmold finished trim and other parts. Many of themarketing and technical co-op ventures that Kafusearlier set up with Findlay, JCI, Visteon, and others arestill in force today. The firm is also working with Delphi,and Japanese and other foreign auto producers with U.S.based plants, according to Harry Hickey, Sales andMarketing Manager for Flexform.

Natural fibers such as kenaf or hemp are used to replacefiber glass as long fiber reinforcements for PP and otherplastics for auto trim and other parts. Flexform does notuse flax fiber yet, but occasionally use jute fiberalthough its quality varies and a reliable supply isuncertain. Flexform, continues to expand the use of itsnatural fiber composites. With proven applications inautomotive trim parts, Flexform is experiencing rapidgrowth. Its sales were up over 100% in units in 2001,and 2002 is on track for an additional growth of over 75%in units.

Flexform produces its patented kenaf-based Flexformnon-woven mat, plus LoPreFin kenaf-basedcomposites, as part of a strategic alliance with R&SStanztechnik. The mat is 0.25 to 0.50 in. thick, andtypically consists of 50% kenaf needle-punched togetherwith 50% PP fibers. LoPreFin non-woven mat is a tri-layer structure with a natural-fiber core and needle-punched outer layers of PP fibers woven with PET fiber.

Flexform is shipping product to Findlay, who produceBM Saturn deck trays and Ford Cougar door panels,International, Volvo and Mack Truck interiors. JohnsonControls is another a customer who ultimately suppliesDaimler Chrysler. Visteon Automotive Systems remain ajoint development partner with Flexform in the field ofnatural fiber composites, and is incorporating Flexform'scomposites in the Lincoln Continental, Ford Mustang,Escort, Taurus, Focus and Mercury Sable models.

Starting out with just composite products for auto trimparts, Flexform has recently introduced fiber compositecompounded sheets for exterior door panels and otherparts for recreational vehicles, and compounded sheetsfor office furniture parts.

Based on growing demand for its products particularly innon-automotive applications, Flexform is now expandingthe manufacturing area of its plant by about 200% toreach a total of around 148,000 SF in 2002. The firm alsorecently set up kenaf crop fields in North Carolina toestablish a larger and protected source of fiber.

Flexform: Harry Hickey, 574/295-3777

WPC Property For SaleIP to Exit Composite Decking

International Paper (IP; Stamford, CT) has decided tocease its early stage business activities in wood-plasticcomposite decking. Since acquiring ChampionInternational in May 2000, IP has been divesting itself ofbusinesses that do not fit into its paper, packaging andforest product segments. The company had beenbuilding a line of WPC decking and fencing aimed at thepremium segment of the market. Patent pendingformulation and processing know-how were developedto provide a long-lasting appearance for these outdoorproducts which were branded under the DaVinci tradename. IP took the steps to develop a turnkey fullyoperational web site, and had been pre-marketing theproduct line at wholesalers and selected lumberyards inthe Midwest.

Hard assets include a pilot extruder at the companys SCfacility, a former Masonite plant, where IP was alsoplanning to install a wood fiber processing plant to feedthe composite-making operations. The company hadplanned to install two twin-screw extrusion lines in June2002 although that decision has been delayed pendingthe sale of the business.

IP: Steve Morrison, [email protected]

April 30, 2002 NATURAL & WOOD F IBER COMPOSITESNATURAL & WOOD F IBER COMPOSITES Vol. 1, No. 4/Page 5


If you would like to have your event listed on theWood Composites calendar, please call us at

484/459-2239 or send the information to:[email protected]

Events Calendar

May 14-16, WOOD-PLASTIC COMPOSITES: ASUSTAINABLE FUTURE Vienna, Austria Sponsoredby AMI Plastics, the event will highlight alldevelopments in the industry. For info: visit AMI atwww.amiplastics.com

May 14-16, AUTO INTERIORS SHOW CoboConference Center, Detroit, MI Sponsored by AutoInteriors, the will include several papers on natural-fibercomposites used in automobiles. For info: visitwww.autointeriorexpo.com

May 23-24, 2002 PROGRESS IN WOOD FIBRE-PLASTIC COMPOSITES Toronto, ON Sponsored byMaterials & Manufacturing Ontario (MMO) and theUniversity of Toronto, this conference focuses on newdevelopments in wood composites. For registration,program, or exhibitor info: call Valeri Iannaci at 905/823-2020 x226, [email protected]

June 26-28, PCBC 2002 - The Premier Building Show Moscone Center, San Francisco, CA The show attractsover 21,500 industry professionals and 625 exhibitors for4 days of education, exhibits, and networking. For info:visit www.pcbc.com

September 18-20, FUNCTIONAL FILLERS INPLASTICS 2002 Toronto, ON Sponsored by IntertechLtd., this conference will address the latest in fillers forthermoplastics and thermosets. Specific presentationson natural fiber and wood flour will be included. Forinfo: visit www.intertech.com

November 5-7, InterAUTO 2002 Cologne, GermanySponsored by Automotive Interiors, this conference andexhibition will address the latest in interior materials anddesign. For info: visit www.interauto.co.uk

Equipment

Decorative Panel MoldingFlax/PP Sheet for Molded Auto Parts

Cannon Tecnos (Milan, Italy) has manufactured acomplete production system for compression moldingdecorative auto-interior parts using a flax-reinforced PPsheet. Tecnos proposes this material as an alternative toconventional GMT sheet. Initial commercial use is a six-piece trunk liner molded in a single shot for Audi inGermany.

Carlos Ortenzi, Tecnos' market manager, says the sheetis a sandwich of a PP core and flax-reinforced PP skins.Tecnos' system introduces the preheated flax/PP sheetinto the press simultaneously with two outer layers of aprintable polyester nonwoven rollstock that is cold-fedinto the system without contacting the PP sheet prior tomolding.

The double-acting press has movable upper and lowerplatens to improve the balance of flow in the mold.Tecnos supplies the press, preheating oven, automaticsheet-feeding and centering equipment, unwindingstations, and automatic roll-change systems for thedecorative rollstock. The line produces six parts aminute.

Cannon Tecnos: Carlos Ortenzi +39 331 406811

Higher Capacity WPC ManufacturingMilacron Introduces New Twin-Screw Extruder

Milacron (Batavia, OH) is very active in the WPCprocessing market. The company has sold some 130 twin screw extruders (TSE) to the WPC market since1997.

TSEs with conical screw barrels and counter rotatingthrust can press together wood flour and polymer meltfor good bonding and move the very viscouswood/polymer composite compound through the exit dieto properly form the finished board or other productshape.



Source: Milacron

Equipment (Contd)

In the early days of serving the WPC market, Milacronfocused its extruder technology development on itsModel 75 HP (horse power) conical 80 mm screw exitdiameter and 156 mm feed zone TSE. Later, the firmintroduced its Model 92 HP TSE with 150 to 200 HP and92 mm exit diameter and 184 mm feed zone.

In 2001, Milacron brought out its Model E-86 TSE with125 HP and 86 mm exit diameter and 176 mm feed zone. Most recently, the firm launched its Model A-172 parallelscrew TSE with 300 HP and 172 mm exit diameter and 172mm feed zone. Tom Brown, General Sales Manager forMilacron, comments thatthis high performanceTSE unit can output 3,500to 4,000 lb of WPC anhour, and was developedto meet the ever-increasing need for greaterthroughput productivity.

He further states thatMilacron also knows the importance of a properly driedpre-blend or compound prior to extrusion, and offerspreheated mix feeding and other auxiliary equipment.

Milacron: Tom Brown, 513/536-3303

Technology

AWF and Battelle Join ForcesFocused Research on WPC

American Wood Fibers (Schofield, WI) and BattelleMemorial Institute (Columbus, OH) have signed a Letterof Understanding to join forces to identify, develop, andmarket advanced materials for the wood polymer market.

American Wood Fibers is North America's leadingmanufacturer of high quality wood flour for the growingcomposites market. With facilities from coast-to-coastthey are uniquely positioned to supply theever-increasing demands for high quality fiber. TomFrank, Vice President of Business Development statesAs the composites market continues to develop andevolve we see an increasing demand for improvedcomposite materials that can offer our customersadditional performance features such as enhancedstrength characteristics, superior fiber wetting, orimproved throughputs, just to mention a few.

Battelle is a world leader in research and technologywith an enormous wealth of talent in polymers, polymerprocessing, and advanced material development. Theunion of our two firms in this area was inevitable and thebeneficiaries are our valued customers.

Battelle has a long history of innovation in thedevelopment of new technology that provides practicalsolutions for both industry and government. Battelle'sscope of expertise covers a broad spectrum of industriesthat can benefit from improved composite materialtechnology in markets from automotive, to constructionmaterials, to medical applications. We believe thecomposites industry will benefit from this businessrelationship by utilizing Battelle's technology andAmerican Wood Fiber's commercialization efforts tomarket the advanced materials that will be developed inthe months and years to come, said Battelle's DavidStroud, Sr. Market Manager.

AWF: Tom Frank, [email protected]

Documents

PP2-029V1N4Apr02 - Natural Wood Fibre & Composites