A NEWLY PUBLISHED BASF PATENT CLAIMS APPLICATION OF NEXAM CROSSLINKERS

Posted: 28 September, 2015 in Nexam, Published Investment Calls
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This might be one of the most exiting CESI finding published. Why? In December 17, 2014, the market expectations and the Nexam share price instantly plunged after the first key sentence of this specific Nexam press release:

“Nexam Chemical and BASF have jointly decided not to extend the exclusivity agreement regarding polyamide 66 compounds containing Nexam Chemical´s crosslinker, which was signed between the parties in February 2014, and which ends during the second quarter of 2015. The reason for this decision is that Nexam would like to include polyamide 66 in the projects it has with other partners in the polyamide area.

The collaboration will however continue between the parties and test material based on BASF’s polyamide 66 and Nexam Chemical’s additives will be tested in components by e.g. the automotive industry during spring 2015.

For more information, please contact:
Lennart Holm, Chairman of the Board: +46 (0)706 30 8562″

Despite additional information regarding continued activities, the market obviously concluded that minimal true value remained in the Nexam-BASF collaboration and since the market has not found incentives to update this opinion. Updates indicating continued activities have been absent both from external news agents, inofficial content from independent forums as well as from Nexam and BASF.

In the light of this introduction, the new BASF patent publication (described below) resulted in an increased CESI pulse and a few questions after yet another thorough scan of the December 17, 2014 press release:

“The reason for this decision is that Nexam would like to include polyamide 66 in the projects it has with other partners in the polyamide area. [..] The collaboration will however continue between the parties and test material based on BASF’s polyamide 66 and Nexam Chemical’s additives will be tested in components by e.g. the automotive industry during spring 2015.”

To the best of CESI´s knowledge, no specific information is available for outsiders regarding status in Nexam projects with other partners. However, attached below is a very recent indication that BASF is progressing well within polyamide 6 and 66 and – most importantly for the Nexam share holder – BASF is adding specific Nexam cross-linkers…

Pub. No.: WO/2015/140016 International Application No.: PCT/EP2015/055018

Original Source Link (click here)

Title: CROSS-LINKED POLYAMIDES

Publication Date: 24.09.2015 

International Filing Date: 11.03.2015 (3 months after termination of the exclusivity agreement!)

In this patent, BASF claims a thermoplastic molding material containing a polyamide + glass fibers + Nexam cross-linkers + miscellaneous additives and/or fillers. To CESI´s excitement, the Nexam cross-linkers has a central role in this patent and in addition BASF states that these cross-linkers are available from Nexam (!)

CESI Diclaimer: The patent quotes attached below was subject to automated translation by the web browser and this resulted in a few grammatical errors below. To conserve the true message and accuracy, CESI decided not to edit these grammatical errors.

“It has now been found that the profile of properties of glass fiber reinforced PA can be significantly improved by the addition, inter alia ethynylmodifizierten Phthalsäureanhydri-to or imides. The additives are this compounded at very low temperatures in the polyamide, which the amino end groups of the polymer “endcap-pen”, a cross-linking but not / or will take place in the melt in just such a small scale, so that the polymer can still be processed. The triple bonds of the additives are then thermally activated in a further step, for example by introducing high shear forces during injection molding or by annealing below the melting point of the polymer. The thus obtained crosslinked polyamides have an improved property profile. in- cluding a lower water absorption, higher heat resistance and improved creep. is also reduced by the lower water absorption of the deterioration of the mechanical properties in the conditioned state.”

[…]

“Process for the preparation of the unsaturated compounds C) are known from the EP-A 2 444 387, WO 2010/36175, WO 2010/36170 and WO 2012/52550. Such compounds are available as Nexamite ® from Nexam Chem., SE commercially.”

Very particular preference is given in the novel thermoplastic molding compositions of polyamides, which are selected from the group consisting of Polyhexamethylenadipin acid amide (nylon 66, polyamide 66), a mixture of polyamides with a polyamide 66 component of at least 80 wt .-% or a copolyamide whose blocks at least 80 wt .-% of adipic acid and hexamethylenediamine are derivable, polycaprolactam (nylon-6, nylon 6), or mixtures thereof.”

Component C1 equals NEXAMITE®A32 (Nexam Chem.) (4- (Methylethynyl) Phthalic Anhydride (CAS: 1240685-26-0)

Component C2 equals NEXAMITE®A33 (Nexam Chem.) (Hexamethylene-1, 6-di- (4-methylethynyl) phthalimide)

The mechanical properties were determined in dry and conditioned state.

[…]

Component H) thermoplastic molding compositions of the invention may comprise the usual processing aids, such as stabilizers, antioxidants, heat stabilizers and UV stabilizers, lubricants and release agents, colorants such as dyes and pigments, nucleating agents, plasticizers, and so forth.

Examples of antioxidants and heat stabilizers are hindered Phos-phite and amines (eg TAD), hydroquinones, aromatic secondary amines, such as diphenylamines, various substituted representatives of these groups and mixtures thereof, in concentrations up to 1 wt .-%, based on the weight of called thermoplastic molding compositions.

UV stabilizers, which are generally present in amounts up to 2 wt .-%, based on the molding composition, are various substituted resorcinols, salicylates, Benzotriazo-le and benzophenones.

Inorganic pigments, such as titanium dioxide, ultramarine blue, iron oxide and carbon black, and organic pigments such as phthalocyanines, quinacridones, perylenes, and dyes such as anthraquinones, are added as colorants.

Flame retardants phosphorus, P- and N-containing compounds may be mentioned.

As nucleating agent sodium phenyl, alumina, silica, and preferably talc may be used.

The thermoplastic molding compositions according to the invention can be prepared according to known Ver-go, by mixing the starting components in conventional mixing apparatus, such as screw extruders, Brabender mixers or Banbury mixers, and then extruding them. After extrusion, the extrudate can be cooled and comminuted. It can also be individual components are premixed and then the remaining starting materials and / or likewise mixed. The mixing temperatures are generally from 230 to 320 ° C.

The molding compositions and moldings of the invention are distinguished by a good heat resistance, chemical resistance, low water absorption, better mechanical properties in the conditioned state, scratch resistance, dimensional stability and creep.

[…]

“The molding compositions are suitable for the production of moldings of any type, especially in the automotive sector.

Some examples are mentioned: cylinder head covers, motorcycle covers, intake manifolds on, intercooler end caps, connectors, gears, impellers, cooling water tanks.

In the E / E department can with improved-flow polyamides are plugs, plug components, plug connectors, membrane switches, PCB assemblies, microelectronic components, coils, I / O connectors, connectors for printed circuit boards (PCB), connector for flexible circuit boards (FPC) connectors for flexible integrated circuits (FFC), high-speed connectors, terminal blocks, connector, Connectors, wiring harness components, cable mounts, cable mount components, three-dimensional molded interconnect devices, electrical connectors, mechatronic components.

In the car-interior is a use for dashboards, steering column switches, seat components, headrests, center consoles, gearbox components, and door modules, and possible automobile exterior door handles, exterior mirror components, windshield wiper components, windshield wiper protective housings, grille, roof rails, sunroof frames, engine covers, cylinder head covers, intake manifolds (in particular intake manifold), windshield wipers, and exterior bodywork parts.

For the kitchen and household sector, the use of improved-flow polyamides for the production of components for kitchen equipment, eg fryers, smoothing irons, buttons, and applications in the garden and leisure sector, for example components for irrigation systems or even-tengeräte and door handles is possible.”

These stated BASF applications also aligns well with the application stated in the original Nexam Chemical press release (Nexam Chemical source link):

“Nexam signs co-operation agreement with BASF

2011-11-23

Nexam Chemical and BASF have signed an exclusive co-operation agreement regarding development and commercialization of crosslinked PA 66 (nylon 66).

The goal is to develop a PA 66, containing Nexam’s crosslinkers, which can be processed as usual to then be crosslinked using heat activation, and that the crosslinked material gets properties that are substantially better than current PA 66 based materials.

Initial application segments consist, among other things, of the automotive, electrical and electronics industry.

For more information, please contact:

Lennart Holm, Chairman of the Board: +46 (0)706 30 8562
Per Palmqvist Morin, CEO, +46 (0)706 55 55 82″

BASF patent WO/2015/140016 Summary (CESI)

  • Roughly 10 % less water content using a formulation containing Nexam cross-linker(s).
  • Roughly 20 % stiffer material (a +20 % E module number is stated). Slightly different results at different temperature. Higher stiffness at all temperatures was obtained using a formulation containing Nexam cross-linker(s).
  • Roughly 15 % better heat resistance using a formulation containing Nexam cross-linker(s)
  • Higher tensile strength (+10 %)
  • DRAMATICALLY higher gel content (BASF states higher is better): 400% after injection in the comparison between formulation 1V and formulation 2. Formulation 2 contains NEXAMITE®A32 and NEXAMITE®A33. The gel content after heating at 220 ° C is roughly 50% for formulation 2 compared to < 5% for formulation 1V.

Conclusion (CESI)

CESI does not interpret this patent as a BASF strategy to actively delay or block Nexam cross-linkers from the market. Why? All stated result data is superior to “Nexam free polyamide”. BASF should have strong incentives to capitalize on this formulation / innovation. In fact, the claimed applications are aligned well with the previous statements (Nexam:The collaboration will however continue between the parties and test material based on BASF’s polyamide 66 and Nexam Chemical’s additives will be tested in components by e.g. the automotive industry during spring 2015″). Presumably, the patent filing date (Mars 11, 2015) might indicate that these tests were successful and that the collaboration is in fact still an active collaboration. In addition, BASF clearly states that the cross-linkers are Nexam derivatives AND also states that they are commercially available from Nexam. Therefore, CESI does not believe that BASF plans to produce these cross-linkers in-house. 

So what did happen back in December 2014?

Due to the complexity of the formulations stated in this patent (i. d. the large number of “ingredients”), CESI is relatively convinced that the earlier BASF exclusivity agreement was in fact terminated by Nexam (as officially and originally stated) primarily due to delays in the formulation work performed at BASF. Logically, BASF had no ambitions to buy large volumes of cross-linkers without a confirmed successful formulation. Speculatively (with this patent as the guide), it seems like BASF did not solve prior formulation issues until in the beginning of 2015. Therefore, CESI also believes that only the exclusivity agreement was terminated (not the collaboration). Furthermore, Nexam´s input in terms of “hands on late stage formulation optimization” has likely been limited since (compared to 2014 when CESI got the impression that Nexam and BASF worked next to each other on a daily basis). In conclusion, this has potentially freed up resources and therefore Nexam logically and easily could take the strategic and intelligent decision to (temporarily?) exclude nylons as a focus area. Another key game stopper for top prioritization of polyamides could be “unknown time to market” for cross-linked BASF Nylons (containing Nexam cross-linkers). CESI believes that a similar strategy will be applied for other current polyamide collaboration partners with a small twist :This time, Nexam aims to charge for consulting. Finally, CESI speculatively predicts a future BASF market launch containing Nexam cross-linkers and that Nexam ultimately will capitalize on future BASF polyamides (nylons) after all. CESI embraces this potential BASF counter-strike within yet another gigantic polymer market segment. 

Note: Slightly more reading in SwedishClick here if of interest (a Dec, 2014 email from L. Holm to Six News, source: Aktiespararna):

Best regards, C.E.S.I.

The author, Cutting Edge Science Invest, is a Nexam Chemical share holder. Cutting Edge Science Invest can not guarantee, or take into accountability, the content of truth and accuracy of the information in this article/post.Thus, Cutting Edge Science Invest requires that a possible reader gather complimentary information if any type of investment in the company described above is considered. Cutting Edge Science Invest provides personally biased information and at best also “general information and opinions”. The article/post does not contain professional investment advice. 

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