'Mobility’ is a fully-resourced response to automotive industry needs

The market downturn in 2008 culminated with the last quarter of the year dominated by collapses in the banking sector, a squeeze on consumer credit and investment financing and, consequently, the fear of impending global recession.  With the turn of the New Year that fear became a reality with the resulting shock waves impacting virtually every link in every supply chain. 

In the global automotive market every major manufacturer has taken a substantial hit from falling demand and this has had a negative knock-on effect on their supplier industries.  Material supply is the foundation of the automotive value chain and this sector too has seen cutbacks in the availability of products, the development of new products and the provision of supporting services to manufacturers. This is a difficult situation made worse at a time when the need for confidence in the security and continuity of supply lines is greater than ever before. 

Proactive engagement

Without the tools to do the job, trading out of recession will for many in the supply chain be a virtually impossible task. To aid Tier 1 suppliers and OEMs in meeting the current challenges presented by market conditions, as well as those that will follow in the wake of recovery, Borealis has adopted a proactive stance and established ‘Mobility’, a new business unit dedicated to the future development of automotive business.

Mobility, which became operational on January 1, encompasses the previous Automotive BU but extends its scope by consolidating other auto-related activities and resources in a single cohesive organisation. This will, for example, include the incorporation of the company’s battery application business, which was already engaged in new developments such as lithium-based batteries for the automotive market.

According to the new unit’s vice president, Harald Hammer, key will be the continued vigorous pursuit of innovative, value-creating plastics solutions.  “In the present economic climate we see our work to develop new applications that deliver vehicle weight savings and greater fuel efficiency, as well as lower system costs, as having special significance.  Reduced cost solutions with retained performance will make a positive subtraction from supplier and OEM production overheads, and give enhanced ownership value for the consumer. Taken together they make an important contribution to an improved trading environment.

“In tandem with these ongoing developments, it is our intention to explore new long-term opportunities for growth beyond our current core automotive business. Among other possibilities, Asia ’s huge dynamic market for scooters and motorcycles offers such potential,” he says.

Investing in commitment

Borealis has the resources in-place to ensure the new Mobility business unit is fully supported in its mission. Despite the softening market throughout 2008 and its conclusion in the current crisis, Borealis has continued to invest in the auto industry’s future.

Last year at its Itatiba plant in Brazil the company completed the installation of a third polypropylene (PP) compounding line, principally serving the local automotive industry. This more than US$6m investment has raised annual production capacity from 24,000 tonnes to 35,000 tonnes, which brings the company’s total compounding capacity in Brazil to 60,000 tonnes per year. The expansion project also included the introduction of pneumatic conveying and automatic packaging systems, to complement the additional capacity with enhanced productivity.

In November 2008 on the opposite side of the world, Borealis’ joint venture company Borouge broke ground signalling the start of a new-build, US$30m PP plant in Shanghai .  Designed to take advantage of the latest technology, the facility is scheduled to come on-stream to serve the Chinese automotive market in early 2010. The plant’s layout anticipates an expansion of its start-up capacity of 50,000 tonnes, up to 80,000 tonnes in the medium-term. Shanghai supply capability will also be backed up by the Borouge Borstar RTPO line in Ruwais, UAE, which will also become operational in 2010.

Moreover, these compounding investments are enhanced by the recent upgrading of Borealis’ Borstar PP plant in Schwechat , Austria , with an additional gas phase reactor to produce state-of-the-art RTPO grades. This €30m investment will further secure the supply of high-end TPO compounds, for automotive bumpers and dashboards for example.  Previously, Borealis’ RTPO grades had been produced only at its Kallo facility in Belgium. The new plant set-up will enable advancement of the company’s RTPO and TPO compound range to higher flowing and better mechanical performance materials.

As with all Borealis and Borouge sites, close co-operation with Innovation centres in Europe and the Middle East will ensure customers have access to world-class technical service and state-of-the-art products.

Complementary support

To bolster its PP compound (PP/CP) supply for the automotive industry in Europe and the USA, Borealis AG and its US subsidiary, Borealis Compounds LLC , have entered into manufacturing and supply agreements with affiliates of Mitsubishi Chemical Corporation ( MCC ).  The agreements are intended to ensure ability to meet demand through localised production and supply.  And, Borealis will use its proprietary Borstar^® technology to manufacture high quality, high performance PP/CP materials in accordance with a formula developed by European supply partner, Mitsubishi Chemical Europe GmbH.

In North America Borealis’ manufacturing and supply partner is MCC affiliate Mytex Polymers, located in Jeffersonville , Indiana . Mytex has an installed capacity of 72,500 tonnes available for Borealis products, sufficient to supply both current and proposed programmes. Furthermore, the Jeffersonville site has the potential for production expansion should additional capacity be needed in the future. In addition to having ISO/TS 16949 quality accreditation, Mytex boasts a state-of-the-art technical centre which includes an ISO/IEC 17025 approved laboratory.

Building on these manufacturing and supply agreements and reflecting its commitment to becoming a leading player in advanced plastics solutions , Borealis has appointed Polymer Z as its sales agent for the US automotive market . A leader in its field, Polymer Z is responsible for the market development and sales of Borealis’ innovative automotive products throughout North America , as well as for providing local customers with high-quality technical service, sales and marketing support.

Applied solutions

Working in co-partnership with automotive OEMs and Tier 1 suppliers, Borealis has an established reputation for innovative application solutions. Whether exterior or interior, from front end to tailgate, dashboard to back seat carrier, Borealis materials and technical support deliver benefits that include part-weight savings, simplified processing, performance enhancements and environment-friendly improvements.

Recent innovations include the redesigning of the BMW 7 Series back seat carrier from a hybrid multi-component GMPUR/steel construction, to a single integrated unit in Borealis’ Xmod™, 30% short glass fibre reinforced polypropylene (PP) compound.  This enabled a significant reduction in part weight.

Working with Tier 1 MAHLE, Borealis also delivered a higher performance solution for the air intake manifold of VW 1.4 L and 1.6 L engines. The challenge was met by 36% high performance glass fibre reinforced Xmod™. This satisfied key functional criteria such as long-term high heat and chemical resistance, while delivering better dimensional stability, significantly improved acoustic behaviour and a 15% reduction in part weight.

Confirming Borealis’ position at the leading edge of the industry’s development, its application solutions have figured in the vehicles voted Car of the Year for the last two years.  The Fiat 500, winner of the 2008 accolade, featured PP-based Daplen™ thermoplastic olefins (TPO) on its dashboard and bumpers to achieve the superior aesthetics and excellent performance that give the Fiat 500 the competitive edge in the small car market.

This year the judges’ Car of the Year choice was General Motors’ new Opel Insignia, in which Daplen PP TPO mineral filled grades are featured in its front and rear bumper fascias, as well as covers and grills.  For these applications Daplen delivered an excellent impact/stiffness ratio, dimensional stability, narrowest gap tolerances and the highest surface quality combined with excellent paintability.

Says Harald Hammer: “As we go forward, the Mobility BU will continue to build on these successes while broadening its scope in developing tomorrow’s automotive solutions.”