Megatrends to Business
Meeting the Challenges of the 21st Century
Bayer MaterialScience is committed to help meet the global challenges of energy shortages and climate change through innovative and sustainable technologies and processes. This is the company's central message at K 2010. The company aims to be a prominent part of the solution in tackling the effects of global megatrends such as the growing population and increasing urbanization.
Prior to the show, CHEManager Europe interviewed Patrick Thomas, CEO, Bayer MaterialScience, about past, present and the future of the plastics industry.
CHEManager Europe: What have been the most significant changes to the industry since the last show in 2007?
P. Thomas: The global financial crisis had a huge impact on the polymer industry, but this industry is now recovering - Bayer MaterialScience, for instance, increased its turnover in the first half of this year by more than 40 % compared with 2009. Innovation remains a major focus for our company, irrespective of the general economic climate. Last year we invested €340 million in R&D activities, including customer-related developments. Demand is growing, especially in Asia, our market of the future.
How does BMS go about scouting out new trends? What are the potential end markets that inspire/drive innovation?
P. Thomas: Current global megatrends such as the growing population and increasing urbanization have a significant impact on many areas of daily life and so on many of our company's customer industries. Bayer MaterialScience looks for new trends at an early stage in close cooperation with these industries and using its own extensive know-how and experience. We also develop sustainable and innovative materials and solutions for many different sectors, including automotive, construction, and electronics.
Looking to the year 2020 and beyond, our Creative Center is working on discovering new megatrends and identifying future market demand that could lead to new and promising areas of business for us. Current examples are in robotics and logistics.
What topics are shaping up to become megatrends in the near future?
P. Thomas: We believe that the use of energy from renewable resources is a megatrend that will significantly influence future energy supplies. In photovoltaics, for example, we developed a range of customer-specific solutions for greater energy efficiency, lower manufacturing costs and a broader range of applications. With partners, we have also developed a solar thermal energy system and we are committed to exploring the potential of other natural energy sources such as wind and wave power. Renewable resources are even gaining importance in transportation.
Bayer MaterialScience's motto for the K 2010 is "From Megatrends to Business." What does the chemical industry need to do to make itself a more sustainable business, particularly considering that 20% of greenhouse gas emissions come from industry?
P. Thomas: Our industry already has many of the technologies needed for greater energy efficiency. For example, Bayer MaterialScience is looking at various ways of reducing energy consumption in its own processes to achieve continuous improvement. Our STRUCTese measurement and management system can deliver energy savings of up to 10%in production plants. This system is to be established at 60 of our most energy-intensive production plants around the world by 2012, and we aim to cut specific greenhouse gas emissions per metric ton of product sold globally by 25% by 2020. Our HDI (hexamethylene diisocyanate) process uses 60 %less energy; our TDI gas phase phosgenation plant in Caojing in China will use 40 %less energy; and our melt polycarbonates process uses 20 % less energy than conventional production processes.
Your company strives to push new technologies - for example in bio-based materials and processes, high-performance polymers and catalysis. How does this set you apart from the competition? How do you invest in these technologies - through internal R&D, joint ventures, acquisitions, etc.?
P. Thomas: Thanks to its broad experience and know-how, Bayer MaterialScience is able to develop many materials and technologies on its own that are tailored to market demand and aimed at providing sustainable solutions. Our new green shoe concept, for instance, uses a holistic approach to create a shoe based on a range of environmentally compatible materials. This has advantages for the shoe manufacturer, the end-user and the environment. The concept shoe contains up to 90% environmentally compatible products and up to 70% bio-based raw materials, making it the best-in-class in our industry.
Wherever possible and appropriate, we join forces with other companies and/or universities - in particular when synergy effects can be achieved - by combining our knowledge with that of partners. Acquisitions may also be appropriate, for example when we aim to take over the technology leadership in a certain field by gaining access to a broad patent portfolio. The recent acquisition of Artificial Muscle, Inc is a case in point.
BMS is using megatrends as a driver for business. In which area is BMS concentrating its efforts? Why?
P. Thomas: At the K 2010 trade fair, Bayer MaterialScience will be showcasing its leadership in polymer materials and its focus on sustainable solutions and developments in the areas of climate, technology, mobility, living and health. These have been identified as the major areas that are influenced by global megatrends such as the growing population and increasing urbanization.
Furthermore, Bayer MaterialScience aims to support climate protection through its EcoCommercial Building program. This program is an entirely new business model to aid decision-makers in the global construction industry in constructing ‘green' and economic buildings by providing integrated energy and material solutions. In implementing this program and working closely with a network of partners Bayer MaterialScience takes on an active role in marketing sustainable solutions along the value chain.
What are some of the new developments you're seeing in semiconductor technologies such as LEDs and OLEDs?
P. Thomas: New and more energy-efficient lamp and lighting concepts are a major trend. Bayer MaterialScience supports this with a number of innovative developments for both LEDs and OLEDs. Polycarbonate, with its optical, mechanical and technical properties, is ideally suited for the manufacture of light guides and optical lenses for LEDs. In low energy consumption, long service life and high-quality light, OLEDs go one step further. Working in partnership with Osram, Bayer MaterialScience has developed a highly efficient, polycarbonate-based light extraction film that is being used in the first OLED surface-emitting panel to be sold on a broad commercial basis. As a result of the high light yield of 40-60%, the surface-emitting panel can operate on a lower electrical voltage, which extends its service life.
BMS acquired the California-based company and electroactive polymer pioneer Artificial Muscle in March. How much of a boost has your company gained from the purchase?
P. Thomas: Artificial Muscle is a perfect fit for our films business. The haptics market is growing rapidly, especially for touch screens, and with our electroactive polymer material developments we want to play an active role in this market. We intend to launch our first haptic product in a consumer electronics device within the next few months.