Health Care and Life Science Businesses in Several Global Chemical Companies

In a previous blog, I showed the reporting segment names used by 38 global chemical companies. (Click here to see that blog.)  Three of the 38 companies have health care and three have life science in one of their reporting segments names (health care: Asahi Kasei; Mitsubishi; and Mitsui Chemical - life science: Nitto Denko; Sekisui; and Toray).   

The following tables show the names of the chemical companies with health care and those with life science reporting segment names:

 

company	health care businesses
asahi kasei	heath care is a reporting segment name	includes pharmaceutical products	and medical devices	and filters
mitsubishi	heath care is a reporting segment name	includes prescription pharmaceuticals	and regenerative medicines	and health care management	segment includes two divisions: pharmaceutical and life science
mitsui	heath care is a reporting segment name	includes ophthalmic lens products	and non-woven fabrics for hygiene products	and dental materials	and personal care products

 

 

company	life science businesses
nitto denko	life science is a reporting segment name	includes adhesion technologies	and drug delivery technologies
sekisui	life science is a reporting segment name	includes diagnostic reagents and devices	and contract manufacturing of active pharmaceutical ingredients
toray	life science is a reporting segment name	include pharmaceuticals	and medical devices

 

I examined the most recent annual reports of the 38 global chemical companies referred to in the first paragraph above.  What I found was that none of the European or American companies indicate in their annual reports significant health care of life science business pursuits.  They likely sell products used in health care and the life sciences but in their annual reports such businesses are not described as significant or meaningful endeavors for the company. 

The six companies that I did find describing in their annual reports health care or life science businesses as significant are Japanese companies.  Each Japanese company, in fact, emphasizes a heath care or life science business by elevating that business to a reporting segment business.  These Japanese chemical companies’ health care and life science businesses  manufacture and sale pharmaceuticals and medical devices, as indicated in the tables above. 

The above suggests to me a major difference in perspectives between Japanese and European/American chemical company mangers on chemical company enterprises. 

Although three of the Japanese companies use the term “health care” and the other three use “life science” as reporting segments, the terminology differences do not represent substantive differences based on the businesses described in the tables above.  

High Performance Businesses in Several Global Chemical Companies

 In a previous blog, I showed the reporting segment names used by 38 global chemical companies.  (Click here to see that blog.)   Three of the 38 companies have high performance in one of their reporting segments names (Evonik, Lanxess, and Sekisui).   

In this blog, I provide brief descriptions in the table below on those three companies’ (Evonik, Lanxess, and Sekisui) high performance businesses.  I also reviewed the annual reports of the other 35 companies as to what high performance businesses they have, even though they have no high performance reporting business segments.  The other companies that indicate high performance businesses are also presented in the table, along with brief descriptions of their high performance businesses based on my review of the companies’ annual reports.  Altogether, 20 of the 38 companies indicate high performance businesses, and 18 of the 38 companies report no high performance businesses and are not listed in the table below.

 

company	high performance businesses
albemarle	high performance greases due to lithium	high performance plastics due to bromine-based additives
arkema	high performance thermobonding adhesives	high performance bio-based polyamides
asahi kasei	high performance filters used in pharmaceutical manufacturing
celanese	high performance engineered polymers
chemours	high performance fluoro polymers
dsm	high performance polymers
dupont	high performance engineering resins, adhesives, silanes, lubricants
eastman	high performance coatings
evonik	high performance additives	high performance polymers
huntsman	high performance building insulation
lanxess	high performance materials
linde	high performance coatings
mitsubishi	high performance films	high performance chemicals
mitsui	high performance packaging materials
nitto denko	high performance materials
sekisui	high performance plastics
solvay	high performance polymers and composites
sumitomo	high performance products
toray	high performance abs business
wacker	high performance materials	high performance additives

 

In the last blog in this series of blogs on the reporting segment names used by 38 global chemical companies, I wrote that I would try to provide information on how “high performance” might differ and relate to “special chemicals” and “advanced materials” when used by the 38 global chemical companies when discussing their businesses in their annual reports.  (Click here to read that blog.) 

Here are what I believe are the differences in the terms “special chemicals”, “advanced materials”, and “high performance” when those terms are used in the annual reports to describe businesses: 

‘Special chemicals” businesses are described by the companies in their annual reports in similar terms to how “advanced materials” businesses are described.  Both businesses (special chemicals and advanced materials) are attempting to bring differentiating properties in the products that they are providing to customers.   A difference seems to be that in the special chemicals businesses individual chemicals are being providing that help the customers produced finished products, while in the advanced materials businesses, products are usually finished polymers that are incorporated into the customers products.  The “advanced materials” are met to replace other materials previously used, bringing greater value by the use of the newer material. 

The term “high performance”, although used by three of the 38 global chemical companies in a segment reporting business name, is a much more general term.  My impression is that when “high performance” is used it generally means a performance is enhanced in  some way, without specifying what is met by performance.   The term “high performance” is used more in the sense of a marketing term, an adjective.  One should ask exactly what performance is enhanced and compared to what.

Advanced Materials Businesses in Several Global Chemical Companies

 In a previous blog, I showed the reporting segment names used by 38 global chemical companies.  (Click here to see that blog.)   Two of the 38 companies have advanced materials in one of their reporting segments names (Arkema and Solvay).   

In this blog, I provide brief descriptions in the table below on those two companies’ (Arkema and Solvay) advanced materials businesses.  I also reviewed the annual reports of the other 36 companies as to what advanced materials businesses they have, even though they have no advanced materials reporting business segments.  The other companies that indicate advanced materials businesses are also presented in the table, along with brief descriptions of their advanced materials businesses based on my review of the companies’ annual reports.  Altogether, 11 of the 38 companies indicate advanced materials businesses, and 27 of the 38 companies report no advanced materials businesses and are not listed in the table below.

 

company	advanced materials businesses
arkema	high performance polymers	examples: pvdf for batteries; polyamides, e.g. pekk	for use in: wind power; metal substitutes; smart phones
basf	new applications for: isocyanates; polyamides; plastic specialties
chemours	fluoroproducts
dsm	advanced materials with high performance levels	in medical area: gowns and tubes	in water area: faucets, etc.	bio-based thermoplastics for metal replacements, etc.
dupont	polymer-based high performance materials, differentiating customers' products
eastman	polymers, films, and plastics with differentiated performance properties	Examples: cellulose esters; polyesters; polyvinyl butyral (pvb); polyester films
huntsman	replaces traditional materials	examples: epoxy, acrylic, and polyurethane-based polymer resin systems
sekisui	for urban infrastructure use - polymer materials
solvay	advanced materials for use in urban areas
toray	replacement with advanced materials for use to transform health care, electronics
tosoh	synthetic zeolites	silica glass	zirconia

Here are some conclusions from my research of the annual reports of the 38 global chemical companies related to their “advanced materials” businesses: 

• Many of the companies in the table above refer to their advanced materials business as one which replaces older, traditional materials with newer-developed materials.  The material is often a polymer.  And an important distinguishing feature of the material is that the material is unique and differentiates by its use. 
• In a previous blog in this series of blogs in which I am examining how 38 global chemical companies describe their businesses in their  annual reports, I write about those chemical companies that describe “special chemicals” businesses.   (Click here to read that blog.)  These special chemical businesses are described by the companies in their annual reports in similar terms to how “advanced materials” businesses are described.  Both businesses (special chemicals and advanced materials) are attempting to bring differentiating properties in the products that they are providing to customers.   A difference seems to be that in the special chemicals business individual chemicals are being providing that help the customers produced finished products, while in the advanced materials business, products are usually finished polymers that are incorporated in the customers products. 
• In both special chemicals and advanced materials businesses, strong research and development programs are needed to support the success of the businesses. 
• In addition to “special chemicals” and “advanced materials” being used in annual reports as reporting segment names, the term “high performance” chemical or material or polymer are found as reporting segment names.   In my next blog, I will try to provide information on how “high performance” might differ and relate to “special chemical” and “advanced materials”.

 

Chemical and Metal Shortage Alert – March 2021

The purpose of this blog is to identify chemical and metal shortages reported on the Internet.  The sources of the information reported here are primarily news releases issued on the Internet.  The issue period of the news releases is March 2021. 

Section I below lists those chemicals and metals that were on the previous month’s Chemical and Metal Shortage Alert list and continue to have news releases indicating they are in short supply.  Click here to read the February 2021 Chemical and Metal Shortage Alert list. 

Section II lists the new chemicals and metals (not on the February alert).  Also provided is some explanation for the shortage and geographical information.  This blog attempts to list only actual shortage situations – those shortages that are being experienced during the period covered by the news releases.  Chemicals and metals identified in news releases as only being in danger of being in shortage status are not listed. 

Section I.   

• Construction materials:  United States; production not keeping up with demand
• Lumber:  United Kingdom and United States; supply not keeping up with demand
• Polyolefins, such as polyethylene:  Europe and United States; production not keeping up with demand
• Shipping containers:  global; supply not keeping up with demand
• Steel:  global; production not keeping up with demand 

Section II.   Shortages Reported in March not found on the Previous Month’s List 

• Adhesives:  global; supply not keeping up with demand
• Butanediol (BDO):  United States; production not keeping up with demand
• Forms (e.g., used in cushions):  United States; production not keeping up with demand 

Reasons for Section II shortages can be broadly categorized as:  

• Mining not keeping up with demand: none
• Production not keeping up with demand: butanediol (BDO); forms (e.g., used in cushions)
• Government regulations: none
• Sources no longer available: none
• Insufficient imports:  none
• Supply not keeping up with demand:  adhesives