Akzo Nobel's manmade fibers group, based in The Netherlands and Germany – HQ: Akzo Nobel Fibers BV (PO Box 9300, NL-6800 SB Arnhem) –, is investing Dfl 150m in a capacity expansion for para-aramid fibers at its Emmen works in the northern part of The Netherlands, scheduled to be operational by 1995. Akzo is so convinced of a bright future for the "stronger than steel" yarns – sold under the trade name "Twaron" – that it does not exclude another capacity buildup before the end of the decade. This is in spite of an unsettled dumping dispute, which puts considerable restraints on sales of its product in North America, where competitor DuPont "holds down the fort" with its rival fiber "Kevlar".

The Dutch group, whose biggest geographical sales area for the aramid fiber currently is Germany, estimates worldwide growth rates of 8% or more up to the end of the decade, as the fibers begin to replace polyester, nylon and rayon as reinforcements in high-performance technical rubbers. Akzo also is banking on aramids, in which it has invested some Dfl 1bn over the past decade, to take a prominent position in markets presently dominated by conventional engineering plastics.

After the new capacity goes onstream at Emmen, just 5 km from the German border, Akzo's annual output will rise to 10,500 t from 7,000 t. The yarns are spun from PPTA polymer produced at Delfzijl, farther north, and shipped by truck to Emmen. The Dutch producer claims about a third of the worldwide 20,000 t/y para-aramids market, which is still dominated by DuPont. Niche players are Teijin in Japan, with a 500 t/y capacity, and Hoechst in Germany, which has a 50 t/y developmental plant.

Akzo's annual sales of para-aramids total Dfl 350m, all from production at Emmen. Because of the excellent economy of scale at the site, there are no plans to build production capacities elsewhere, says business general manager Willem H. Meyberg. After nearly dipping into the red in 1993, earnings on aramids have rebounded considerably this year, he says. Meyberg is also pleased that prices for yarns continue to develop upward. About half of Akzo's turnover in aramid fibers is at the lower priced end of the market, the soft pulp that is used to replace asbestos in brake linings, clutch facings and gaskets. These applications are profiting at present from national legislation banning asbestos.

High-tech yarns for ballistics uses – bullet-proof vests for police and soldiers, as well as helmets and armouring – dominate the higher priced end, although optical fiber applications are catching up. Because of their enormous resistance to heat, the fibres are also being used in firefighting applications. Conveyor belts, v-belts, high-pressure hoses and other applications, such as truck tyres, where weight and strength count, are also important. The fibers' popularity in telecommunications cables is due to their resistance to elongation. Light composites, for use in air freight containers, truck cabins and helicopter parts, along with premoulded compounds, round out the current application palette. Akzo, which returns 10% of sales to R&D, also works with customers to develop new applications, as Meyberg notes.

The industrialised markets of Europe and North America, as well as Japan, where Akzo has a 50:50 joint venture with tyremaker Sumitomo, are equally important for aramid fiber makers. In addition to its sheer size, China is an extremely interesting market because of the fact that the country does not already have the copper-clad telecommunications cables used in other countries and – if the price is interesting enough – will be a ready customer for aramid-sheathed cables.

Akzo will soon open an office in Hong Kong to serve the Chinese market. It already has offices in Indonesia, as well as offices in Brazil and the United States. Business in the US has brought Akzo little pleasure thus far. Until 1992, a patent dispute with DuPont kept it out of North America. Later, the US competition indirectly initiated dumping proceedings, which are costing the European group 56 cents on every dollar of product sold. Even if all US prices are the same – and Akzo insists that, for aramids, they are – an importer is considered to be dumping under US law if its selling price is lower than its cost price plus a certain figure alloted for profit margin or the home country selling price. The dumping charges since have been upheld both by the US Department of Commerce and the US International Trade Commission, the latter ruling this past July. Levies are being held by the US government in an interest-bearing account, pending a review of the matter in 1995 and 1996. In August, Akzo appealed the charges to the US Court of International Trade.

The business unit manager is convinced that, in the end, the suit will be without consequence, due to the decline in the value of the dollar. This will automatically raise the DM-denominated price used as a reference. While Akzo regards the US action as protectionism, it feels the suit could boomerang against its competition, as well.

Meyberg points out that the US market for aramids is sluggish, at present. Although this is certainly due to the decline in defence contracts (from which Akzo as a non-US producer is excluded), he believes the stagnation is also attributable to the no-competition situation, which scares off potential developers of end uses for highperformance products.

READER SERVICE: Publication "Twaron News" (German) No 94/3: PIE-No. 36715.