CHINAPLAS: Asia remains significant market for Kraton

Dr Holger R Jung

Kraton Performance Polymers, Inc. said Asia – lead by China – accounted for 21% of sales revenue in 2012, when the world’s leading styrenic block copolymers (SBC) developer and producer posted revenue of over $1.4 billion on sales volume of approximately 313 kilotons. 

Growth in the region is buttressed by a solid customer base comprising multinationals and locals. The region is also characterised by an entrepreneurial spirit with fast qualification and adoption rates.  

The reason for China’s growing importance as a market is due in part to government initiatives to support the plastic industry’s shift to PVC alternatives, Kraton key spokespersons said at a briefing at Chinaplas 2013. 

Kraton also announced new details of a 50:50 joint venture with Formosa Petrochemical Company (FPCC) to build and operate a hydrogenated styrenic block copolymers (HSBC) plant in Mailiao, Taiwan.

Accelerating innovation

Dr Holger R Jung, vice president Sales & Marketing, said the company’s leading market position notwithstanding that Kraton’s goal is to drive revenue from innovation in SBCs. “In a comparison with our competitors, we found that Kraton derives 49% of revenue from standard products, 38% from differentiated products and 13% from innovation. By 2017, our goal is to reduce the share of revenue from standard products to 32%, whilst increasing that from differentiated products to 43% and from innovation to 25%,” he said. 

Kraton invests $30 million annually in R&D, leading to 50% value creation for both the company and its customers. “We will continue to focus on and developing new applications to drive growth in Asia,” Dr Jung said.  

The company will also continue to push sales in the region of its Cariflex isoprene rubber, a non-allergenic alternative to natural rubber for application that demand extreme purity and performance – such as devices and disposable products for the medical sector, e.g. septums for IV bags, surgical gloves and catheter balloons. 

Kraton slush moulding compounds for the automotive industry and Nexar, a polymer with a high water flux and transport rate, are amongst the innovations that will be leveraged. 

“Slush moulding compounds are used for automotive dash interiors panels as an alternative to PVC,” explained Dr Lothar Freund, vice president Technology. “They’re recyclable and they offer improved aesthetics and haptics.” 

Nexar polymers meanwhile found its first commercial application with a US sportswear company last year. “This high-end sports sPuma Rihanna