## P. 1 

# OAR Box 1872 Prepped byKeeia Richards



# Document

Number: 

# 17 ) II-I-6 6 Docket Number: 

# A-90-1 9

Printed 11/26/20088:51:49AM

Sheet 17 of 204P. 2 

# A-90- H 

# Transpor t

ByBENN O QROENEVELD Th e adhesive s an d sealant s market s fo rtransportatio n application s Have " beeQjr^ingJfegSil^neT^flJlystl^x - 

## pecllbetreD d tp -Qntirme. Currently , th e bes testimate s pu ttota l sales'oTaijiiesTv-e s an d seaJan[^arjl'"E]lio'i i per^frTiTiSe^orTjr£mencar|marjie t an d a I -roi<n3T|fu*-niioh*worldwrJe ~ -onsuHanfTafr yrfosenrjer g o fChe m Sys tem s (Tarrytown , NY. ) esJiflialgiJlSfiJiLa i licsivcsi p th e I I S automotiv e industr yal " 10 0 loJRlO

_millio n pound s pef~year. < Growt h p i ospeci s ar e noooT^etwee n 5 to'1 0 percen t nc ryea rove rth e nex i five"years . mayb e * 7 percen tpe ryear. 1 ' lha l i s significan t growt h accordin g l o Mr . Rosenberg , "anythin g tha t grow s b ymor e tha n GN P i s doin g quit e well. " Rober tBurke', 1 vice-presiden t marketin g fo rNationa l Starc h an d Cheinica l Corpora lion' s Thie m Divisio n estimate s tha tth e au tomotiv e industr ycurrentl yuse s approxi matel y18 0 millio n dr ylbs/yea ro fadhesive s an d sealants . 6 5 l o 7 0 percen to ftha t amoun t bein g adhesives , th e res tsealants . Phi l Phillip s o fIh e Clieinar k Consultin g Grou p (Cincinnati ) estimate s tha ttota l U S consumptio n fo rstructura l adhesive s i n 198 8 wa s wurll i inur e tha n $55 0 million . H e pre dict s growt h ove rth e nex t fiv e year s a tmor e tha n twic e th e GN P rat e wit h "especiall y rapi d growt h o fadhesive s us e j n autpjifojiv e apWeaTiiini^ '

COMPOSIT E GROWT H Th e growt h o fth e us e o fcomposit e mate ria l i n car s an d plane s i s th e mai n drivin g forc e behin d th e growt h i n adhesive s use . Genera l Motor' s ne wAP Vmin i va n i s point in g th e way . It s assembl ylin e wil l us e ap proximatel y150 0 gallon s o fadhesive s a day . Manufacturer s o fplane s an d car s ar e con stantl ylookin g fo rway s t o mak e thei rprod uct s lighter , an d usin g composit e part s i s th e bes twa yt o achiev e weigh treductions . The y nee d t o b e bonde d togethe rchemicall yan d thi s result s i n increasin g adhesiv e an d sealan tconsumption . Lowe rweigh ti s especiall yimportan ti n th e aviatio n industry , wher e eac h poun d save d i n constructio n ca n mea n majo rsav ing s i n fue l consumptio n ove rth e lif e o fa n airplane . Fo rexample , Dutc h aircraf t builde rFokke rsay s tha i i n it s ne wFokke r 10 0 plane , adhesiv e bondin g result s i n a 45 0 poun d reductio n i n manufacturer' s empt y weigh ti n compariso n wit h mor e conven tiona l constructio n methods . Wit h onl y5 0 t o 6 0 percen to fth e automo tiv e market , aviatio n adhesive s ar e a rela tivel ysmal l field , estimate s Ji m McGovern , marketin g manage ro fEmerso n & Cumin g Inc . (Woburn , Mass.) , a subsidiar yo fW.R . Grace . "Ther e ar e fewe rairplane s buil ttha n cars, " say s Mr . McGovern , "bu tplane s us e a highe ramoun to fadhesiv e materia l pe rvehi cle. " Majo rdifference s betwee n adhesive s fo r th e automotiv e an d th e aviatio n industr yar e primaril yi n th e area s o fstrengt h an d curin g lime . Adhesive s i n plane s hav e l o b e abl e t o withstan d muc h greate rstres s an d highe r temperatur e difference s tha n thos e use d i n tars . Th e temperatur e requiremen tfo ra n adhe siv e use d i n Ih e automotiv e are a migh tvar y fro m -40° F i n Winte ri n th e norther n U S t o 40 0 o r50 0 degree s F fo rus e unde rth e hood . To m Tagney , a technica l specialis ti n th e pressur e sensitiv e adhesive s developmen t are a a tDo wCornin g (Midland , Mich) , says : "A n airplan e a t40,00 0 o r50,00 0 ft . i s expose d t o ver ylo wtemperature s and . a tth e sam e lime , ther e ar e part s tha i ge tquit e warm. " Ther e ar e othe rdifference s a s well , note s Mr . McGovern . "A n adhesiv e ha s l o b e resis tan tt o variou s fluid s tha tar e use d i n th e environmen twher e i ti s applied . I n automo tiv e applicatio n tha tmean s oil , ga s o rtrans missio n fluid . I n aviation , i n additio n l o th e oil s an d th e kerosenes , th e adhesiv e materi al s hav e t o b e resistan tl o hydrauli cfluid , an d je thydrauli cflui d typicall yi s prett ynast y stuff . The yar e phosphat e este rcompounds , an d ther e isn' tmuc h tha i i s ver yresistan tt o thos e kind s o fmaterials. " Anothe rdifferenc e i n adhesive s result s fro m Ih e wa ycar s an d plane s ar e pu tto gether . I n automobil e plant s th e spee d o fIh e assembl ylin e i s a majo rfacto ran d material s hav e t o b e bonde d togethe ri n seconds . I n aviation , longe rcurin g period s ar e common . Michae l Cichon , pruduc l manage ra tth e ad hesive s an d structura l material s divisio n o f Dexter-Hysol , Piltsburg , Calif , call s a one hou rcurin g proces s a t25 0 o r35 0 degree s F "almos ta n industr ystandard. " Th e for m o fth e adhesive s i s differen ttoo . Th e aerospac e industr yuse s a muc h large r amoun to ffil m adhesives . "The yar e bondin g larg e structure s wher e i ti s essentia l t o hav e controlle d thicknes s an d weight . Yo u ca n onl yd u tha twit h a fil m adhesive, " Mr . Cicho n explains . I n term s o fsimilarities , manufacturer s o f adhesive s fo raviatio n an d automotiv e appli cation s ar e movin g awa yfro m solvent-base d material s an d ar e increasingl ymakin g wa ter-base d adhesives . Moba yCorporation , fo rexample , ha s in troduce d a lin e o f"Dispercoll " dispersion , whic h —Ih e compan yclaim s — reduc e th e solven tconten to fth e adhesiv e t o 5 percen t o rless , compare d t o th e 6 0 percen tt o 8 0 percen tleve l i n previou s materials . Th e ne w materia l i s a littl e mor e expensive , say s Ken net h Eismann , marke tmanage radhesiv e ra wmaterial s o fMobay' s plastic s an d rub be rdivisio n (Pittsburgh , Penn. ) "I n ra wpoly me rcos ta genera l numbe rwoul d b e $2/dr y lb . fo rsolvent-based , an d 84/dr ylb . fo rth e aqueou s material . Bu tkee p i n min d tha tsol vent s hav e t o b e burne d o rrecovered , tha t become s a n expensiv e materia l also, " say s Mr . Eismann . Th e adhesiv e an d sealant s industr yha s see n a numbe ro facquisition s ove rth e pas t years . Majo rplayer s ar e buyin g others . Fo r

AEROSPACE : Advance s i n adhesiv e material s allo wengineer s greate rfreedo m o fdesign . example , H.B . Fulle r(St . Paul , Minn. ) bough t Terrel l i n 1988 ; America n Cyanami d (Wayne , N.J. ) bough tCona p i n 198 8 an d Nationa l Starc h adde d Thie m i n Januar y1989 . Anumbe ro ffactor s specifi ct o th e auto motiv e an d aviatio n industr ycontribut e t o (hi s growin g concentration . Liabilit yi s a bi g factor . Say s Chemsys tem' s Mr . Rosenberg , "I fyo u ar e pullin g to gethe ra n adhesiv e fo rbags , an d yo u hav e a failure , th e custome rwil l b e unhappy . Bu t whe n yo u hav e a 8100-millio n plan e an d a portio n o fth e bod yfall s apart , yo u ca n imag in e wha tyo u ar e dealin g wit h here . So , i l become s a high-tech , high-ris k area " i n whic h smal l companie s hav e troubl e playing . Ji m McGover n o fEmerso n It Cumin g say s lha tmakin g adhesive s fo rth e aviatio n indus t r ytend s t o b e a n expensiv e process . I n addition , ca rmanufacturer s ar e In creasingl yshiftin g Ih e burde n o fmaterial s testin g t o th e suppliers . For d i s th e onl yman ufacture rlha tstil l doe s som e o fit s ow n test ing , bu ttha ti s decreasin g also . Say s th e Mr . Phillips : "Tha i mean s th e sup plier s literall yhav e t o g o throug h a n abun danc e o ftesting. " Introductio n o fne wmaterial s i s stymie d b yth e natur e o fth e marke tplace . Becaus e adhesive s ar e a crucia l material , an d failur e woul d hav e suc h enormou s consequences , manufacturer s loath e t o chang e material s tha tthe yhav e bee n workin g wit h an d fo r whic h the yhav e buil ta database . Amajo rfacto ri n th e risin g tid e o fadhesive s application s i s corrosio n resistance . Th e mov e i s o n i n warrantie s approachin g 100,00 0 miles/1 0 yea rlevels . Adhesive s ca n eliminat e th e nee d fo rmeta l fastener s an d man yplace s wher e rus tca n develop . I n som e application s adhesive s ar e essen tial . Weldin g galvanize d steel , fo rexample , defeat s th e purpos e o fgalvanizin g i n th e firs t place , becaus e i tremove s th e rust-protectin g layer . Th e us e o fbondin g agent s avoid s thi s problem . Inductio n curin g i s on e syste m tha tha s bee n develope d l o remov e th e potentia l o f rus tformation . Inductio n curin g i s a two-ste p method , explain s Ro n Anderson , busines s manager , industria l adhesive s a l America n Cyanamid , use d on , fo rexample , Ih e perime te ro fa door . "Th e oute rlaye ri s mate d wit h th e inne ran d the n hemmed , s o tha tth e glu e lin e i s i n th e hem . Th e doo rassembl ygoe s int o a n inductio n coil , wher e fo rabou t fou ro r fiv e second s yo u generat e 30 0 t o 35 0 degree s F aroun d th e glu e lin e only , partiall ycurin g an d givin g th e doo rplent yo fstrength , u p l o 80 0 psi , fo rhandling . Th e adhesiv e get s il s fina l cur e i n th e electrica l prime roven , bringin g th e bon d u p t o mor e tha n 200 0 psi, " h e says .



## ByJOH NLIPOLD Th e futur e fo racrylic s woul d see m clear . Advancin g technolog yan d ad vancin g return s continu e t o pus h pres sur e sensitives . An d water-base d sys tems , thoug h fa rfro m perfect , ar e stil l

QUANTU M LEAPS : Changin g technolog yi s openin g ne wopportunitie s fo racrylic-base d ad hesives . grabbin g th e limelight . Ye l i ti s no tcer tai n wh o wil l en d u p th e winner s i n a fiel d stil l bein g shape d b yheav ydevelop ment . Further , varyin g level s o fintegratio n mar k th e hierarch yo fadhesiv e productio n here , makin g th e stake s o fthos e involve d les s tha n clear-cut . A ton e en d ar e supplier s o facryli caci d an d acrylat e esters . Thes e companies , larg e op eration s suc h a s Unio n Carbid e Corporatio n an d Roh m an d Haa s Company , sel l acryli c bloc k copolymer s an d othe radhesiv e precur sor s t o formulator s o n th e merchan tmarket . Others , includin g Nationa l Starc h an d Chemica l Compan yan d S.C . Johnso n _So n Inc. , mak e th e actua l adhesiv e formulation s fro m captiv e productio n o fbloc k copoly mers . The ymarke tadhesive s t o coaler s an d othe ren d produc tmanufacturers . Stil l anothe rgrou p consist s o fthos e com panie s wit h th e capacit yt o produc e th e pre cursors , formulat e the m int o adhesive s an d coa tthe m ont o tape s an d labeling . 3M , Aver yInc . an d Johnso n & Johnso n Inc. , whic h fi ti n here , manufactur e an d con sum e in-hous e abou t8 0 percen to facryli c adhesives , accordin g t o industr yestimates . Becaus e o fth e varyin g level s o finvolve men ti n Ih e trade , es l imate s diverg e a s t o th e exac tamoun to facryli cadhesiv e sales . Bu ti t i s generall yagree d (ha tacrylic s i n al l form s o fdeliver y—solvent-base, , aque"ous"and]jM _ mel t—compos e aTfiarke t o l 4TjtnTM!lion*fa J 

## sotrjnnTToji'p^as^arjwfigRC^ Bil l Broxlermar C presiden to fChemar k Consultin g Group , explain s tha tth e marke t ca n b e broke n int o tw o principa l sectors . Th e larger , standar d acrylics , account s fo ra s muc h a s 8 5 percen to fth e poundag e o fadhe siv e sales . Standar d acrylic s ar e use d a s lam inate s an d binder s i n constructio n an d re late d industries . Th e remainin g 1 5 percen ti s compose d o f pressure-sensitiv e formulation s (PSA's) . Ove rjh e nexUQ.yeats.-M LBrSSierma n sajisjciyerairacryli csale s graujj ] jjjjj'run'a T 

## 6 & iX \ combinatio n o

fcoatin g /^-.technologie s an d per formanc e ha s turne d pressur e sensitiv e acrylic s into a lucrativ e market. " 4 percen t annually . Bu tIh e pressur e sensi tTv'emarTcelrvVIiereTti e rea l potentia l fo rex pansio n no wlies , wil l increas e a ta 5. 5 per cen tclip . Accordin g t o Vern e Sharma , busines s manage rfo radhesive s a tRoh m an d Haas , I t i s a combinatio n o fcoatin g technologie s an d performanc e tha tha s turne d pressur e sensi tiv e acrylic s int o a lucrativ e market . H e i s i n a positio n t o know . Th e compan yi s see n a s th e larges tmerchan tsupplie ro facryli c emulsion s fo radhesive s an d als o ha s a larg e stak e i n Ih e sal e o fformulate d PSA's . Aqueou s technologie s hav e receive d th e mos tattentio n i n recen t PS Adevelopmen ta l Roh m an d Haas , a s deman d fo rsolvent-fre e SR1 0 CHEMICA LMARKETIN G REPORTE R Augus t 28,198 9

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