Spectator - Amazon S3 · † 28th January 2016 ... your company to all sectors of the Ontario plastics community. Our 4th annual ‘Careers in Plastics Event’ is planned for 24th

Location: Toronto Airport West Hotel, 5444 Dixie Road, Mississauga ONRegistration: 6:00 p.m Dinner: 6:30 pm Presentation: 7:00 pmPrice: Members $50, Guests $60, Students $30, Gotomeeting $25

(Limited spaces available for Gotomeeting – first come first served basis – sign/log in details will be sent to registrant) – Please register in advance online. Walk-ins – Add $10

Dyes and Pigments have been used extensively to provide colour to a variety of plastics over the years. As aresult, a variety of diverse chemistries have evolved to cater for the needs of the plastics industry according tothe polymer being utilized and the performance criteria required.

In this presentation we will focus on the science of pigments and their use in thecoloration of plastics. In doing so, we will explore the performance characteristicsof the various types of chemistries of pigments used during plastics processing.We will examine how attributes such as heat stability, resistance propertiesand lightfastness vary according to the pigment used and the polymer beinghandled.

This presentation is ideal for those who work in the colour concentrate/masterbatch or compounding industry and would like to develop a greater understandingof how pigments influence the plastics we work with.

Dr. Mark Vincent – BiographyDr. Mark Vincent is the Executive Vice President at Dominion Colour Corporation. Within his role he isresponsible for the global sales, marketing and ongoing development of new products for the company.

Dr. Vincent holds a BSc and PhD in Organic Colour Chemistry from the University of Wales, Cardiff, UK.After his earning his PhD, Mark joined the Pigment Research and Development group at Ciba, Scotland in1995 as a Research Chemist during which time he participated in the development and improvement of manyorganic pigments.

Dr. Vincent joined Dominion Colour Corporation in 1999 as R & D Manager. Since that time Dr. Vincent hasheld the position of Business Manager - Organics Division & subsequently V.P. Sales, Marketing and Technical.In 2015 he was promoted to his current position and now focuses the majority of his time externally identifyingsales growth and new market opportunities and finding solutions for DCC’s customers.

Technical Presentation – Thursday January 28thPigments - Coloration & Performance in Plastics

Presented by Dr. Mark Vincent, Dominion Colour Corporation

January 20161

Ontario Spectator

Spectatorthe Newsletter of the Ontario Section of SPE January 2016

January 20162

Ontario Spectator

JANUARY PRESIDENT’S MESSAGE

Happy New Year!I hope you and your families have had a great timeover the holidays. As we return to work and organizeour schedules for the coming months we at the SPEOntario have arranged a full program for 2016 andlook forward to seeing our many members at theevents. Our events in 2016 will also be posted onour website in due course and are currentlyscheduled to be:

• 28th January 2016 – ‘Pigments - Coloration andPerformance in Plastics’. Presentation by Dr.Mark Vincent from Dominion ColourCorporation

• 25th February 2016 – Ford Oakville AssemblyPlant Tour – to be confirmed

• 24th March 2016 – Careers in Plastics

• 21st April 2016 – Recycling Seminar

• 19th May 2016 – ‘Extrusion Troubleshooting’.Presentation by Dr. John Perdikoulias(Compuplast Canada Inc.) and Paul Waller(Plastics Touchpoint Group, Inc)

• 3rd June 2016 – 50th Anniversary GolfTournament at Pipers Heath Golf Club.

The presentation scheduled for 28th January will beperformed by Dr. Mark Vincent, Executive VicePresident of Dominion Colour Corporation. It willexplore the coloration of plastics, and theperformance attributes of the various types ofpigment chemistry used during plastics processing.

We are also in the process of organizing a tour of theFord assembly plant in Oakville, home to the FordEdge and Flex and the Lincoln MKX and MKTcrossovers. Exact details will be confirmed movingforward. For future reference, if you or youremployer would like to hold a plant tour of yourOntario facility we would certainly be interested inhearing from you. This is a great way to introduceyour company to all sectors of the Ontario plasticscommunity.

Our 4th annual ‘Careers in Plastics Event’ isplanned for 24th March. This is a great event for

Masters or Post-Graduate students approaching theend of their studies. It will give these students, whowill become part of the future of the Ontario plasticsindustry, the opportunity to interact with industryprofessionals and discover more about industryneeds when seeking employment.

We will also be running a recycling seminar on 21stApril, which will be supported by the CanadianPlastics Industry Association (CPIA). We will havevarious speakers from the Ontario recycling industryappearing including several post-industrialrecyclers, and we intend to have presentations fromWaste Management Inc. and the Ontario Ministryof the Environment and Climate Change.

On 19th May there will be a presentation on'Extrusion Troubleshooting' by John Perdikoulias(Compuplast Canada Inc.) & Paul Waller (PlasticsTouchpoint Group, Inc). Both gentlemen have awealth of experience in extrusion and have beenextensively involved with the SPE Ontario formany years. This will be ideal for those of youlooking for tips and advice related to any extrusionchallenges your company may face.

On 3rd June we will be holding the SPE Ontario’s50th Anniversary Golf Tournament at Pipers HeathGolf Club. This special event will have space for144 golfers and we also have several sponsorshippackages available for our members, which will beadvertised on our website moving forward.

If you have any questions about any of our eventsplease don’t hesitate to contact us for moreinformation.

REMINDER - SPE Ontario websiteIn the past we have used http://www.speontario.com/, but we have transitioned to a SPE hostedwebpage on the main SPE website as it is moreefficient to maintain, as well as having greatermobile functionality, and can be accessed by otherinterested divisions and sections much more easily.The new address will be http://www.4spe.org/Communities/sectiondetail.aspx?ItemNumber=5378.

continued on page 4

Ontario Spectator3

January 2016

UPCOMING EVENTS

EXPAND YOUR KNOWLEDGEAND YOUR NETWORK

28th January 2016‘Pigments - Coloration & Performance

in Plastics’Presentation by Dr. Mark Vincent

from Dominion Colour CorporationToronto Airport West Hotel

5444 Dixie Road, MississaugaRegistration: 6:00 pm Dinner: 6:30 pm

Presentation: 7:00 pmPrice: Members $50, Guests $60, Students $30GoToMeeting $25 (Limited to 25 registrants – first come first served basis) – Please register

in advance online. Walk-ins – Add $10________________________________________

25th February 2016 Ford Oakville Assembly Plant Tour

Details To Be Confirmed________________________________________

24th March 2016Careers in Plastics 2016Details To Be Confirmed

________________________________________

21st April 2016Recycling Seminar

________________________________________

19th May 2016‘Extrusion Troubleshooting’

Presentation by Dr. John Perdikoulias (Compuplast Canada Inc.) &

Paul Waller (Plastics Touchpoint Group, Inc)

________________________________________

3rd June 2016 50th Anniversary Golf Tournament

Pipers Heath Golf Club, Milton

Chemicals, Reinforcements, Polymers and Additives for the Composites, Plastics and Rubber Industries.

Tel 416 740 5300Fax 416 740 2227 www.univarcanada.com

JANUARY PRESIDENT’S MESSAGE

January 2016

4Ontario Spectator

This can be found by going to the SPE main website,then clicking on 'Communities', then 'Sections',then finally 'Ontario'.

Now, when you try to connect tohttp://www.speontario.com/ it should transfer you tothe new site where you will find the SPE Ontarioinformation page. This will have our events listedand a PayPal link for quick and easy payments. Weapologize for any inconvenience caused during thistransition, and urge you to save the new SPEOntario website in your bookmarks.

If you do have any issues as we move to the SPEhosted webpage please contact me, Bruce Howie [email protected].

We look forward to seeing you at our events over thecoming months, and I wish you all the very best ofgood fortune for 2016.

Bruce HowieSPE President

continued from page 2

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FEATURE ARTICLE

Ontario Spectator5

January 2016

Dow Chemical and DuPont have announced a planto merge, combining two U.S. industrial andchemical icons in a deal valued at more than $130billion, which dwarfs the industry’s largest deal todate, (AzkoNobel’s 2008 acquisition of ICI for $17billion). The combined company will be namedDowDuPont and be dual-headquartered in Midland,MI and Wilmington, DE.

Upon completion of the DowDuPont transaction,Dow chairman and CEO Andrew Liveris willbecome executive chairman of the DowDuPontboard, and Edward Breen, chairman and CEO ofDuPont, will become CEO of DowDuPont. In theseroles, both Liveris and Breen will report to the board.

The companies intend to subsequently pursue aseparation of DowDuPont into three independent,publicly traded companies through tax-free spin-offs. This would occur as soon as possible, which isexpected to be 18-24 months following closing,subject to regulatory and board approval. Accordingto a statement issued today by the companies, “Thetransaction is expected to deliver approximately $3billion in cost synergies, with 100 percent of therun-rate cost synergies achieved within the first 24months following the closing of the transaction.Additional upside of approximately $1 billion isexpected from growth synergies. “

Dow was third in IHS ChemicalWeek’s latest“Billion-Dollar Club” ranking of the largestchemical makers by revenue, with sales of $58.2billion in 2014. DuPont ranks eighth, with 2014revenue of $24.7 billion. The two companies haveeach faced activist and investor pressure to considermore aggressive portfolio rationalization than theyhave undertaken to date.

The spin-offs will include the leading global pure-play agriculture company with revenue of $18

billion based on 2014 sales. The largest business willbe a material science company with sales of $51billion, made up of Dow’s current franchise,excluding agriculture, and electronic materials, plusthe addition of DuPont’s performance materialsbusiness, including engineering plastics andelastomers.

The specialty products company, with revenues of$12 billion, includes DuPont’s electronic andcommunications; nutrition and health; industrialbiosciences; and safety protection business; plusDow’s electronic materials business.

Under the terms of the transaction, Dowshareholders will receive a fixed exchange ratio of1.00 share of DowDuPont for each Dow share, andDuPont shareholders will receive a fixed exchangeratio of 1.282 shares in DowDuPont for eachDuPont share. Dow and DuPont shareholders willeach own approximately 50 percent of thecombined company excluding preferred shares. Thecompanies had a combined market capitalization ofapproximately $130 billion at announcement.

Advisory committees will be established for each ofthe businesses. Breen will lead the agriculture andspecialty products committees, and Liveris will leadthe material science committee. DowDuPont’s boardis expected to have 16 directors, consisting of eightcurrent DuPont directors and eight current Dowdirectors. The full list of directors will be announcedprior to or in conjunction with the closing of themerger. The committees of each company willappoint the leaders of the three new standalonecompanies prior to a contemplated spin-off.

Separately, Dow announced today that it willbecome the 100 percent owner of Dow Corning,which is currently a 50-50 joint venture withCorning. Dow and Corning will maintain their

Dow and DuPont to Combine in $130-billion Merger of Equals, Creating Industry’s Largest Deal to Date, Says IHS

continued on page 6

FEATURE ARTICLE

current equity stake in Hemlock SemiconductorGroup, Dow says. Dow and DuPont shares ralliedmore than 10 percent on 9 December, closing at$51.06/share and $74.10/share, respectively,showing investor enthusiasm for the combination.

Industry Impact: An IHS Chemical PerspectiveA DowDuPont merger would be followed by a three-way split, broken down to agriculture, materialscience, and specialty products. As structured now,the deal keeps the core of Dow Chemical’sintegrated franchise in place, excluding itsagricultural chemical business and electronicsmaterials business (inherited from Rohm and Haas).The materials science business would also take onDuPont’s performance materials business (includingengineering plastics and elastomers) as well as DowCorning. The only true peer on this scale thatremains is BASF.

This specialty products spinoff would be a $12-bil-lion specialty products maker, including DuPont’ssafety and protection, electronics, nutrition, andindustrial biosciences businesses, plus the additionof Dow’s electronic chemicals business. The dealcontinues a dramatic rationalization of DuPont’sfranchise. DuPont was the largest chemical makerglobally by revenue in 2000. At $12 billion, theseremaining DuPont businesses would not rank in thetop-30 globally.

The combination ofDow and DuPont’sagricultural business-es likely presages fur-ther consolidation inthe agriculture seg-ment. The cyclicaldownturn in agricul-ture has made dealsin agriculture all butinevitable—a senti-ment confirmed bynearly all seniorexecutives at thebig-six agriculturalchemical firms.Until thisDowDuPont was an-

nounced, the top ranks of the big six in seeds andcrop protection chemicals have remainedunchanged since Novartis and Zeneca combinedtheir agriculture businesses to form Syngenta in2000, although significant consolidation hasoccurred in recent years among tier-2 producers,who typically focus on crop-protection chemicals.

The deal continues the shift, accelerated in the pastfew years, by the agitation of activist investors,toward simpler and more focused portfolios. Thereshuffle of Dow’s and DuPont’s non-agriculturaloperations would continue the split betweenspecialty chemical and advanced material niches.Upstream integration would be retained for basicchemicals and polymers (materials) while bringingscale to the specialty business.

Further, the planned acquisition of Dow Corning —a major producer of silicones — will significantlystrengthen the combined entities’ electronicmaterials and consumer care portfolios. Likewise,DuPont’s portfolio complements Dow’s with regardto food and nutrition and personal care productingredients: DuPont (Danisco) is a major player innutrition and health and a small player in thepersonal care products industry. While IHSChemical views this segment as more specialty innature, this part of the portfolio is slated to remainwith the Materials’ focused company, along with themajority of the legacy Dow franchise.

A recent IHS Chemical Specialty Chemical UpdateProgram Overview of the Specialty ChemicalsIndustry report identifies 30 or so such nichesranging from more than $40 billion/year in revenue(specialty polymers, construction chemicals,cleaning ingredients, and electronic chemicals) allthe way down to thermal printing chemicals, valuedat $670 million. Paints and coatings, roughly a$125-billion/year segment globally, and industrialgases, are broader specialty-like niches that havebecome dominated by focused producers.

While Dow retains the upstream integration withexpanded capabilities to bring a full portfolio ofadvanced materials, increasingly Basics (along withintegration to commodity plastics) will likely becommanded by integrated oil companies, state-

continued on page 7

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January 2016

FEATURE ARTICLE

owned enterprises, emerging players in Asia and theMiddle East, and a few remaining regional players inthe United States and Europe. The last group wouldinclude a DowDuPont combination with an extend-ed advanced material portfolio, LyondellBasellIndustries, Ineos, and Westlake Chemical, notwith-standing the presence of other MNC producers suchas ExxonMobil, Shell or ChevronPhillips Chemical.

The rest of industry is focusing on targeted and morespecialized niches spread across more than 30segments. The emphasis here is on innovation,market knowledge and close customer relationships.Horizontal diversification is now seen as adistraction for some operators, as their businessfocus intensifies and broad-based ambitions arereduced.

While not true for agriculture, research anddevelopment (R&D) emphasis for chemicalsnarrows on developing applications with newmaterials penetration and extending product linesrather than core invention and developing newchemistry. These strategies will likely be tested intime as emerging players in Asia, including state-

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owned enterprises and national champions,continue to expand research capabilities and surelywon’t limit themselves to basic chemical productionover the long haul.

This may well be the natural evolution of anindustry that has seen giants such as Hoechst,Union Carbide, ICI, and others disappear during thepast 20 years, but we are truly witnessing a tectonicchange and a continued evolution of diversified erain the global chemical industry.

Article used with the permission of IHS Chemical

January 2016

8Ontario Spectator

SPE Ontario Board Members 2015/2016

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PLATINUM SPONSOR $2,500

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Spectator - Amazon S3 · † 28th January 2016 ... your company to all sectors of the Ontario plastics community. Our 4th annual ‘Careers in Plastics Event’ is planned for 24th