Posts Tagged ‘Armacell’

This Nexam article primarily aims to highlight the improvement of material properties gained by applying Nexam cross-linking technology:

“Nexam develops crosslinkers that fit optimally into different kinds of polymers including polyimides, nylon, polyethylene, polypropylene, polycarbonates and PEEK. The technology, which is based on previous developments carried out by NASA, has now been further developed and new patents have been applied for. The new crosslinkers result in improved processing properties such as controlled melt behaviour and they can be tailored to work with almost any polymer.


“Formerly, fillers were used predominantly to cheapen end products, in which case they are called extenders. Among the 21 most important fillers, calcium carbonate (CaCO3) holds the largest market volume and is mainly used in the plastics sector.[2] While the plastic industry mostly consumes ground calcium carbonate the paper industry primarily uses precipitated calcium carbonate that is derived from natural minerals.” Source link, Wikipedia

Effect of temperature and filler. A few CESI conclusions:

Nexam demonstrates an example that a plastic´s tensile strenght is lowered ( – 33 %, at 210 °C ) when dilued with 60 % (mass weight) of calcium carbonate (CaCO3). However, for the same plastic crosslinked with 2.5 % of Nexam cross-linker, the plastic´s original tensile strength is retained even if “diluted” with ~60 % (mass weight) of CaCO3 (!)

Furthermore, in the same example at 210 °C, the cross-linked plastic (containing 2.5 % of Nexam cross-linker) is stronger compared to the original plastic (not containing Nexam cross linker), even if diluted with 10 % CaCO3 (+>40 MPa tensile strenght versus +>30 MPa tensile strenght in the highlighted example).

Source link (t =19:20, in Swedish): ref:



PE100 is an ISO designation for a grade of pressure rated PE material. The designation means simply that the material is polyethylene, PE, and that the material qualifies for a 10 MPa (100 bar, 1450 psi) MRS rating at 20°C Source link, 

For PE pressure piping materials, slow crack growth (SCG), is the long term failure mode. SCG is not brittleness. Stress such as internal pressure causes cracks to develop and grow through the pipe wall from stress concentrations Source link, 

Japan Polychem Corporation (wholly owned by Mitsubishi Chemical Corporation) claims that:

“Polyethylene, especially PE100 Resin has been steadily increasing its use in pressure pipes for water and gas based on its superior property balance. Of all the properties required for PE100, when we consider the defects on the pipe surface and the stress concentrations on the fitting of complicated shape, the most important for the lifetime of pipe should be the resistance to Slow Crack Growth (SCG). Recent requirements for cost reduction by no-dig or no-sand installation have been enhancing the need for the improvement of SCG resistance”


“Polyethylene(PE) has already established its position as a major material for many pipe applications,
such as gas and water distributions (pressure pipes), sewerage, drainage and conduit, based on it’s
excellent characteristics such as light weight/ flexibility for easy handling and chemical stability for
corrosion resistance. The strength of PE pipe line system to the earthquake according to its ability to
follow the ground movement and excellent fusion-welding strength is now well acknowledged. In
Japan, there have been several strong earthquakes with the magnitude of more than 6 such as the
Great Hanshin-Awaji earthquake (Magnitude 7.3, 1995) and the Niigata-ken Chuetsu earthquake
(Magnitude of 6.8, 2004). Although there were a lot of damages observed to iron, steel and PVC
pipes in those earthquakes, there was no report of the damage to the PE gas and water pipe line
system. Therefore, the usage of PE pipes to the lifelines like water and gas is increasing year after
year also in Japan.”

PE for pipes, especially PE100 resin, has been steadily increasing its use all over the world and is
expected to grow further. Together with the spreading of PE100 resin, the requirements for cost
competitive installation methods like no-dig or no-sand methods are also increasing. In these
installation methods, however, we can not avoid the surface defect by scratching and the
concentrated local stress by stone or something like that in the backfill material. These defect and
stress concentration can give the pipe more stress than anticipated and may cause the failure of the
pipe, if the material’s resistance to stress crack or slow crack growth (SCG) is not strong enough.”

Source link:

In the most recent Nexam presentation, the CEO Anders Spetz presented that SCG for PE100 pipes containing Nexamite equals a 307 % improvement compared to PE100 pipes containing no Nexam cross linker (reference). 

Source link (t =19:40, in Swedish): ref:



Hydrostatic testing is universally known and accepted as the primary means of demonstrating the fitness for service of a pressurized component (Source link, Plastic Pipe Institute)

  • An indoor video example of a hydrotest

  • An outdoor video example of a hydrotest

Hydrostatic leak tests typically use cooler liquids so the liquid filled test section will tend to equalize to a lower temperature near test liquid temperature. Source link, Plastic pipe 

In the most recent Nexam presentation, the CEO Anders Spetz also presented results from a hydrotest. PE100 pipes containing Nexamite equals a 320 % improvement compared to PE100 pipes containing no Nexam cross linker (reference).

Sourcelink, Nexam at småbolagsdagen 2015 (In Swedish, t = 19:40)

PE pipe status note, Nexam 2014 Annual report: Other promising partnerships Other promising partnerships include PE applications (polyethylene), in which full-scale testing will be conducted by pipe manufacturers during the first six months of 2015. The aim is to develop a manufacturing process using crosslinkers from Nexam Chemical that results in plastic pipes with greater stability. This would enable the manufacture of pipes in larger diameters, while maintaining production speed


Du Pont:

“There is a need for a new method for making polyimide nanowebs with suitable mechanical properties from high concentration solutions; polyimide nanowebs comprising nanofibers of a cross-linked polyimide; separator comprising polyimide nanowebs; and multilayer articles and electrochemical cells comprising separator.”

In  this patent, Du Pont demonstrates that mechanical and electrical properties were improved using the Nexam products EPA (ethynyl phthalic anhydride) and PEPA (4-phenylethynylphthalic anhydride)! Additionally, Du Pont specifically states that PETA was obtained from Nexam (WO 2013/181333 A1; E. I. DU PONT)

Addition Curable Polyimides – Summary from the Nexam – Evonik Webinar


•Increased coating build and / or line speed
•Removal of solvents
•Controlled thermal activation


•Retention of properties at high temperatures
•Solvent resistance
•Low void content

Source link: Nexam Evonik Webinar.

IMPORTANT NOTE : Webinar available only until September 24, 2015 (!)

A new Nexam resin: NEXIMID® MHT-R in short Source link

Nexam Chemical introduces a new ”easy to process” resin that is primarily intended for use within the aerospace industry. Other areas, such as machine, general industry and transport sectors will also benefit from this high property material. The new resin, NEXIMID® MHT-R, is intended for small to medium sized production volumes of high-temperature composites by Resin Transfer Moulding (RTM). Temperature properties such as Tg is superior to most other materials and polyimides on the market.

  • Binders for fixation of fibre preforms:
    Reactive binders for fixation of a fiber pre-form are available. The binders are NEXIMID® A57 and A58.  A57 is a mono functional binder that reacts with the resin and A58 is a bi functional binder. Each binder melts at a specific temperature and upon cooling glues the pre-form together. During processing the binders react with the resin upon curing. The reaction is an addition reaction and no volatiles are formed during the process.


From Nexam patent US8492507 B2 Source link 

“Polyamides are recognised as exhibiting good abrasion resistance, low friction coefficient, good resistance to heat and good impact resistance. Polyamides are in dry conditions good electrical insulators. Polyamides are typically hygroscopic and absorb water. This absorption will change some properties, such as insulation, tensile strength and stiffness. The impact resistance is increased by a higher content of water.

There are, despite the fact that polyamides have excellent physical and chemical properties and for a long time have been widely used for resins, films, fibres, moulded articles and so on, demands for improved and/or modified properties, such as increased operational temperatures and retained properties during and after exposure to for instance harsh temperature, atmosphere, mechanical and radiation conditions.

It has now quite unexpectedly been found that an acetylenic polyamide can be obtained by incorporation of one or more carbon-carbon triple bonds into a polyamide, for instance as endcapping group(s), as pendant group(s) along the molecular backbone and/or as group being part of the molecular backbone. The acetylenic polyamide of the present invention meets said demands for improved and/or modified properties exhibiting an excellent combination of toughness, resistance and thermooxidative stability” […]

The purpose of the present invention is to modify the mechanical properties of polyamides and compositions comprising polyamides. Among these modifications of properties can be mentioned: higher softening temperature, higher E-modulus and improved ability to counteract creep strain.

Note: E-modulus = Elastic modulus =  A number that measures an object or substance’s resistance to being deformed elastically (i.e., non-permanently) Source Link, Wikipedia


PET bottles exposed to UV light negatively impact next generation bottles – Plastic Engineering

Described above is a “storage issue” of PET bottles produced from recycle material. In fact, Nexam might potentially already have principal solutions at hand to this issue, both in respect to chain extenders (= PBO = “repair agents”), UV protection during second generation production of recycled PET (see bold font below) and the original and new Nexam cross linking approaches (see bold font below). One example:

  • Nexam patent US20140018460 – COMPOSITIONS FOR IMPROVING POLYESTERSPublication Date:16.01.2014


“Accordingly, the present invention preferably seeks to mitigate, alleviate, eliminate or circumvent one or more of the above-identified deficiencies in the art and disadvantages singly or in any combination and solves at least the above mentioned problems by providing a method for altering the melt characteristics, such as the melt strength, of a polyester.” […]

“According to an embodiment, also blowing agent, such as carbon dioxide, nitrogen, alcohols, ketons, methyl formate, hydrofluorocarbon a hydrocarbon, e.g. n-hexane, iso- or n-pentane, cyclopentane and n-heptane, or a gas mixture thereof, an expanding agent, a foaming agent, nucleating agent, such as talc, kaolin, silica gel, and TiO2, a flame retardant, such as a halogenated, charforming (like phosphorus-containing) or water-releasing compound, a plasticizer, a lubricant, such as an ester of a fatty acid, an impact modifier, insulation modifier, a pigment, a filler, an antioxidant, a UV-stabilizer and/or a color improver is melt mixed with the polyester” […]

“The cross-linker and chain extender comprising at least two groups being able to react with a carboxy group and a phenolic hydroxyl group will act as chain extender, e.g. by connecting terminal carboxy groups of two separate polyester molecules, as well as cross-linker, e.g. by connecting non-terminal pending carboxy groups of two separate polyester molecules. The molar ratio of polyester and tetracarboxylic dianhydride, will affect the number of non-terminal pending carboxy groups being present and hence also the degree of cross-linking. Further, the cross-linker and chain extender will act as water/acid scavenger, as any water in the material will result in hydrolyzed polyester generating an acid and an alcohol, these acids can be tide back to the polymers by the cross-linker and chain extender if such is present in the material.”

In fact, the above described cross linking approach is not based on the earlier reviewed and described 2+2+2 cyclotrimerization (the Berthelot reaction). This polyester cross linking approach is based on another type of chemical reaction. If time allows, CESI will describe this specific reaction in a more pedagogic approach that hopefully also can be understood by a non chemist.

Furthermore, the Armacell patent EP 2 163 577 A1 is refered:

“As taught by EP 2 163 577 A1, it is known within the art that a combination of PMDA (pyromellitic anhydride), PBO (1,3-phenylene-bis-oxazoline), and a sterically hindered phenol, i.e. a compound comprising a 4-hydroxy-3,5-di-tert-butyl-phenyl moiety, may be used to improve the properties of PET. The sterically hindered phenols are stated to be believed to act as hydrogen donor, wherein radical scavenger neutralizes the alcoxy or peroxy radicals generated by hydrolytic or thermal degradation, and does thus terminate the chain propagation of degradation processes. It also stated that, by adding sterically hindered phenols, the effectiveness of functional anhydride groups remain, therefore, intact for further upgrading reactions.”

“The present inventors have unexpectedly found that the addition of poly functional compounds comprising at least two non-sterically hindered phenolic hydroxyl groups rather than sterically hindered phenols, as taught be EP 2 163 577A1, improves the PET further. Further, the present inventors have also found that the non-sterically hindered phenolic hydroxyl groups may be replaced or complemented with carboxy groups.”

CESI Conclusions: A or B or C 

  • A: Nexam and Armacell is working closely togheter (= very positive)
  • B: Nexam is fully or partly taking the role as a sheer (successful) innovator in Armacell´s- and other competitor´s core PET research areas thereby securing IP and potential near future business value also within this segment (= positive)
  • C: Nexam aims to independently and additionally capitalize on the invention in PET areas not covered by the current PET foam exclusivity agreement (= positive, exlusivity agreement source link)

Is Armacell planning to purchase PBO (on scale) from Nexam? Was this a key driver for the recent Nexam PBO commercialization? Time will tell.

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. 

Interestingly, Nexam seems to make progress within PE pipes business:

“During the current year, we will put more resources into delivering a strong “proof of concept” with our technology in the prioritized high-volume segment. A first step is commercialization of applications within PE-pipes, and a variety of film and foam, based on PET, PE and PE.” Furthermore, in the year-end report, this quote attracted the author´s interest: “Our cooperation with a major pipe manufacturer has taken decisive steps forward and in 2015, full scale tests will take place at the customer using products that include our crosslinking.” 

The author (CESI) felt curious and decided to learn more about the global plastic pipe market. CESI has previously analysed the Nexam Chemical technology in this blog post.

What is PE Pipe? High-Density Polyethylene Pipe (HDPE or PE Pipe) is made from ethylene, which can be derived from either crude oil or natural gas. PE pipe is extremely strong, durable, flexible, corrosion free and chemical resistant. These features make it perfect for a variety of underground conditions and help it last up to 100 years. The smooth walls allow for less friction, which increase flow through the same diameter as that of other pipes.

When installed, the pipe is joined by a heat fusion process, which prevents leakage. By using PE pipe, municipalities save a vast amount of water and reduce repair rates…

 leak new

This translates into a significant cost savings for the life of the pipe. PE pipe can carry potable water, wastewater, chemicals, hazardous wastes and compressed gases. PE is the preferred piping material for natural gas distribution because there is no tolerance for leaks and no worries about corrosion.

“Since its discovery in 1933, PE has grown to become one of the world’s most widely used and recognized thermoplastic materials. The versatility of this unique plastic material is demonstrated by the diversity of its use and applications. The original application for PE was as a substitute for rubber in electrical insulation during World War II. PE has since become one of the world’s most widely utilized thermoplastics. Today’s modern PE resins are highly engineered for much more rigorous applications such as pressure-rated gas and water pipe, landfill membranes, automotive fuel tanks and other demanding applications. PE’s use as a piping material first occurred in the mid 1950’s. In North America, its original use was in industrial applications, followed by rural water and then oil field production where a flexible, tough and lightweight piping product was needed to fulfill the needs of a rapidly developing oil and gas production industry. The success of PE’s pipe in these installations quickly led to its use in natural gas distribution where a coilable, corrosion-free piping material could be fused in the field to assure a “leak-free” method of transporting natural gas to homes and businesses. PE’s success in this critical application has not gone without notice and today it is the material of choice for the natural gas distribution industry. Sources now estimate that nearly 95% of all new gas distribution pipe installations in North America that are 12” in diameter or smaller are PE piping. (Source: The handbook of PE pipes)
“High-density polyethylene (HDPE) pipe category demonstrates high growth prospects among leading plastic pipe resin categories. These pipes include less installation costs when compared to other varieties of plastic pipes and can also be modified according to application area. Europe and the US comprise the largest markets. Asia-Pacific, Middle East, Eastern Europe and Latin America are expected to display higher growth than the global average growth rate following increasing demand for plastic pipes in construction, telecommunications and natural gas distribution systems. Advancements in drinking water transfer systems, and sewage and drainage systems are also expected to drive the market for plastic pipes. Additionally, laying of natural gas distribution pipelines, which is currently underway or being planned in many countries is also likely to bolster the drive for plastic pipes. (Source: Plastesmart)
  • China represents the leading producer of plastic pipes worldwide with about 2,000 production lines. Majority of the new and expansion projects in the country are extensively making use of plastic pipes.
  • The Middle East and African markets are also expected to witness rapid growth with increasing demand from local industrial enterprises and construction companies.
  • The US is poised to witness continued prevalence of plastic pipes over conventional piping materials. A combination of factors including likely rise in state spending towards municipal and state infrastructure projects and a rebound in construction activity are expected to spur robust expansion of pipes market. In addition, pressing need to repair and replace the worn-out water pipe networks and increased oil and gas exploration as well as transmission related operations are poised to support pipes market expansion in the US.
  • In Europe, the increasing thrust towards improving and expanding infrastructure networks across Eastern Europe is poised to expand the consumption of plastic pipes in the region.
Plastemart also highlights these Major players in the marketplace
  • A.G. Petzetakis
  • Advanced Drainage Systems Inc.
  • Amanco
  • C. I. Kasei Company
  • Chevron Phillips Chemical Company LLC
  • EgePlast A. S
  • Finolex Industries Ltd
  • Foshan Rifeng Enterprise Co
  • IPEX Inc.
  • JM Eagle Company Inc.
  • KWH Pipe Ltd.
  • Mitsubishi Plastics Inc.
  • National Pipe and Plastics Inc.
  • North American Pipe Corporation
  • Pipelife International GmbH
  • Plastika AS
  • Polypipe Plc
  • Royal Pipe Systems
  • Sekisui Chemical Company Ltd.
  • Shin-Etsu Polymer
  • Tessenderlo Group
  • Thai Pipe Industry Co. Ltd.
  • Tigre SA Tubos e Conexoes
  • Uponor Corp.
  • Wavin N.V.
The 2014 Research and Markets report about the Global PE Pipe Industry highlights these companies (no free access to full report):
  • Anhui Guotong Pipe Co., Ltd.
  • Borealis
  • Canghou Mingzhu
  • HaiNiu
  • Hangzhou renhei Plastic Co., Ltd.
  • Hoechst
  • Lyondellbasell
  • Shandong Shengli Plastic Co., Ltd.
  • Shenzhen Baifukang Co., Ltd.
  • Shenzhen Dow Water Treatment Equipment Co., Ltd.
  • Wuxi Jiangtong plastic pipe Co., Ltd.
  • Wuxi Xindong plastic pipe Co., Ltd.
  • Zhejiang Fuhua Pipe Co., Ltd.
  • Zhejiang Huafeng Pipe Co., Ltd.
  • Zhejiang Xinde Pipe Co., Ltd.
Thus, solely within the PE pipes segment, there are more than a few large near future potential end customers for the cutting edge technology provided by Nexam. In this animated video, the pipe forming and installation process is very clearly demonstrated (3D animation, no sound):


Some general global PE business metrics estimations (Plastic News)

World plastic pipes market is projected to reach 7.6 billion meters by 2017, as per Global Industry Analysts, Inc. Long term growth in the market clearly underlines a shift in balance towards the emerging markets, driven by heavy infrastructure investments and rise in construction activity (source, see previous link above).

“The plastic pipe industry will see double-digit growth over the next 10 years with global sales for manufacturers and the businesses supporting them estimated to reach $500 billion by 2024Four major factors are contributing to the favorable outlook: shale oil and gas developments, regional market expansion, innovation and increased awareness about the life-cycle assessment of plastic pipes. That’s all according to Stephen Boros, vice president of engineering for Pipeline Plastics LLC, who spoke at the Plastics Pipes XVII conference held last month in Chicago. Plastic pipe continues to supplant competing materials like copper, concrete and steel because of low-cost installation and long-term performance, according to Boros, who was chairman of the event, which was attended by 470 people from 34 countries. Regionally, the plastic pipe industry in China is experiencing the greatest growth and a spin-off conference focused on Asia is being organized for September 2015 in Shanghai. “Last year, China became the world’s largest producer and consumer of plastic pipes,” Boros said. “While we can expect the U.S. market to maintain double-digit growth as recovery of the construction market picks up, we can also predict similar gains in Asia and eventually Eastern Europe.” He also credited innovation with environmental implications, such as horticultural applications and water management solutions to relieve floods and droughts, for changing the way plastic pipe technology is viewed. “The versatility of plastics and the human minds that are inspired to share their useful contribution to the planet are ceaseless,” Boros said. “Unlike competitive pipe industries, the world’s leading plastic pipe makers regularly invest over 10 percent on research and development.” The scale and scope of the industry also is being shaped by increased security in the supply of raw materials from shale oil and gas developments as well as new studies pointing to the sustainability of plastic pipes over its life cycle, Boros said.” 

Regarding to Jim Rickards, in the next economic crisis, “water business” will be one of the most safe bets in respect to investments, so…

“Water quantity and quality are the biggest environmental issues that we face in the 21st century.” That is according to former EPA Administrator Christie Whitman, who says that the US pipe infrastructure is in poor condition and is continuing to deteriorate each year.

In 2005, the American Society of Civil Engineers (ASCE) down graded America’s drinking water and wastewater systems to a “D -”. Looking forward it seems the trend getting worse if municipalities do not take proactive measures to improve their water facilities. In cities and towns throughout the U.S., our water infrastructure is usually 50 to 100 years old and well past its life expectancy. Our municipal water systems are aging fast, and it’s won’t get any better without serious intervention.

American’s aging wastewater management systems discharge billions of gallons of untreated sewage into U.S. surface waters each year. The EPA estimates that the nation must invest $390 billion over the next 20 years to replace existing systems and build new ones to meet increasing demands. If this are not addressed now, the correction could be costly for taxpayers.

According to the Colcom Foundation, 36 states are anticipating water shortages by the year 2013. If that’s the natural course of freshwater availability then leaking, dilapidated piping systems are not the solution. “More than half of humanity will be living with water shortages, depleted fisheries, and polluted coastlines within 50 years because of a worldwide water crisis” (UN report, 2003).

  • A survey of 46 jurisdictions, including 43 states found an average of 16 percent “unaccounted for” water leakage with some leakage as high as 50 percent.
  • 2.5 billion gallons of drinking water (~22%) lost every day in the United States, most from leakage (AWWA? 2007).
  • Over 48 million gallons of drinking water lost every day in each state, most from leakage (Rich Gottwald, PPI, 2003).
  • 3.6 million illnesses reported every year caused by accidental release of sewage into drinking water systems from over-burdened or failed systems (Rich Gottwald, PPI, 2003).
  • Over $36 billion are spent every year on pipe maintenance due to corrosion of metal pipes (”


A miniature CESI selection of recent PE (HDPE) plastic waterpipe replacement programs…

  • The Leavenworth Water Department Excavates 100-Year-Old Water Mains, Undergoes a Major Replacement Program with Plastic Pipe and Makes Emergency Flood Repairs (uimonline source link) The City of Leavenworth has about 180 total miles of transmission lines, water mains and service lines. About half of that pipe will likely need to be replaced over the next 20 years, according to John Kaufman, general manager of the Leavenworth Water Department, which serves about 50,000 people. Since the 1990s, the water department has consistently evaluated and replaced water lines, but in 2005 it began a more proactive makeover of the system, replacing mainly cast iron pipe with high density polyethylene (HDPE) pipe. Kaufman says according to very accurate records kept by the city, much of the cast iron pipe that has been replaced was originally installed in 1882.

Screenshot from pipe 2015-03-27 21:34:26


  • Casselberry to replace water pipes, improve drinking water. The city is using a breakthrough technology to replace the outdated pipes in neighborhoods across the city: The new pipes are installed through/inside the old pipes (by the attachment of a metal head to the front of the new plastic pipe that breaks up the old cement pipes). When the new pipe is in place, a hydraulic system pulls the metal head out of the ground.”I like that. Less construction and destruction,” said resident Estelle Simandl.



Click here for video link (2 min) 


  • Palo Alto Replacing Aging Water Mains A week ago today some Palo Alto residents awoke to dry taps and toilets that wouldn’t refill after the initial flush. A water main had ruptured during the night sending water gushing down Newell Street. Palo Alto City Utilities crews worked through the night and much of Saturday to replace the bad pipe and get water flowing again. Palo Alto is a mature city with quaint streets, graceful architecture—and an aging infrastructure. Snaking beneath streets are 230 miles of water mains. The pipelines are made of everything from cast iron to concrete. The majority, 138 miles, is asbestos cement pipe (ACP) installed from the 1940s – 1970s. Currently, the city uses High Density Polyethylene Pipe (HDPE) “which is by far the best kind,” according to Debra Katz, Utilities Communications Manager for the city. ( source link)



  • HDPE outperforms all other materials in earthquakes: “Recent Earthquakes: Implications for U.S. Water Utilities” by John Eidinger G&E Engineering Systems Inc and Craig A. Davis Los Angeles Department of Water & Power, sponsored by the Water Research Foundation:  “The three case studies show that HDPE and chain-jointed ductile iron pipe have performed well in earthquakes, even where they are in located in infirm ground; non-seismically designed welded steel transmission pipes have failed in many places in the Japan and Chile earthquakes”


Some examples of PE, PP and polyolefin industrial pipes from around the world (borouge)

Screenshot from PO 1 2015-03-27 20:59:00

Screenshot from PO2 2015-03-27 20:59:29


Very Interestingly, the above depicted examples are extracted from a Borouge company presentation.

Borouge is a leading provider of innovative, value creating plastics solutions. A joint venture between the Abu Dhabi National Oil Company (ADNOC), one of the world’s major oil and gas companies, and Austria based Borealis, a leading provider of chemical and innovative plastics solutions, Borouge is a groundbreaking at the forefront of the next generation of plastics innovation.

With its base in the United Arab Emirates and its Marketing & Sales head office in Singapore, Borouge employs more than 3,000 people with over 40 nationalities, serving customers in 50 countries across the Middle East, Asia and Africa.

Borouge Production capacity: In 2010 Borouge tripled the annual production capacity of its plant in Abu Dhabi to 2 million tonnes.

With further expansion to 4.5 million tonnes scheduled in 2014, Borouge and Borealis will have a combined annual production capacity of approximately 8million tonnes of polyethylene and polypropylene.

Lars Öhrn held an Market Application Manager position at Borouge (Abu Dhabi) before accepting the new Nexam Chief Marketing Officer position.

The above stated facts (and grapics) should explain why CESI is so attracted to the Nexam pipe business (and the following statement from the last Nexam report should be the key to near future Nexam share value creation: “Our cooperation with a major pipe manufacturer has taken decisive steps forward and in 2015, full scale tests will take place at the customer using products that include our crosslinking.)

Armacell. Regarding the Nexam PET foam business, CESI hopes Armacell will meet the minimal agreed order volumes later this year.

2014-12-22 Nexam Chemical and Armacell have jointly agreed to extend the exclusive supply agreement regarding Nexam’s products into PET-foam

Nexam Chemical and Armacell have jointly agreed to extend the exclusive supply agreement regarding Nexam’s products into PET-foam, which was signed between the parties in February 2014.

The extension is due to the fact that the implementation of the supply agreement has been delayed by approximately 1 year as a result of a strategic decision made by Armacell to switch from virgin PET to recycled PET as the main raw material base.

Armacell had accomplished good test results with Nexam’s products in virgin PET and is optimistic about the outcome in recycled PET. However Armacell needs to reformulate and thereafter reconfirm test results using Nexam’s products with recycled PET instead of virgin PET. The reformulation work using Nexam’s products in recycled PET has already begun at Armacell.

CESI edit and update  20170822.

According to the Nexam 2017 Q2 report, Armacell will apply the Nexam cross linking technology in the next generation PET foam!


“The delivery agreement that we signed with Armacell last quarter is about to, with some delay, find its practical form. Armacell will use NEXAMITE® in its ArmaFORM® PET-foam to achieve increased efficiency. “


Source link


Finally, a few more words on the competitive electron beam technology (also highlighted in the original CESI Nexam blog post)

The Nexam technology is unique. There is one technology – electron beam cross linking – that could be considered being classified as a competitive technology. Attached below is a crash course video covering this cross linking approach.

However, CESI is convinced that the production cost should be substantially higher compared to conventional heating. Why? The electron beam is generated in the following way:
Screenshot from e beam 2015-03-26 22:20:38
Full video here (E-beam commercial movie).
Now, compare the electron beam technology with the Nexam technology where the cross linking process is initiated with standard heating in standard extruders already present in the end customers facilities!
Screenshot from extruder 2015-03-26 22:28:18

More info regarding standard extruder operation and control: Paulson Training, youtube video link

Thus, the e-beam cross linking technology is innovative, however unnecessarily complex compared to the Nexam Chemical technology. Therefore, CESI very much believes the old quote from Per Morin: “Electron Beam technology has been around for 50 years, it´s simply too expensive”

In summary, CESI has zero expectations regarding the number of sales in the next Nexam interim report. In addition, CESI does not expect any major positive surprises before the summer. However, in 6-18 months time, CESI expects that Nexam chemical will break the silence through frequent press releases announcing multi-ton orders of cross linkers from various end customers and within many different plastic product segments which quickly and initially (again) should lift the company´s market cap to the low multi-billion SEK region and eventually to the high multi-billion SEK region. Last time, hype from the former CEO Per Morin was the key share price appraisal driver. Next time, the sales numbers will be the key driver. Therefore, CESI welcomes the new business oriented CEO, Anders Spetz, and his ongoing build-up of the new sales team that will broaden the  customer base by moving forward in the value chain. If the Nexam shareholder is positively surprised by a very near future order announcement, CESI speculates that this order could come from IRPC. Why? Below is a quote from the Nexam Interim Financial Statements for Quarter 3, July–September 2014: “IRPC has informed us that they now have passed the development phase, with respect to a polyethylene quality for pipes, and will begin testing the quality for approval together with their end client in the autumn/winter.”

CESI has not yet highlighted the Nexam Chemical new high-temperature resin, NEXIMID® MHT-R. According to the same interim report, Nexam has already received several inquiries from around the world. In addition to the project with Rolls Royce and Swerea SiComp, Nexam is expecting several companies to initiate projects with the new resin in the coming years. CESI is also eager to review the near future market opportunities for Nexam´s new product PBO (phenylene bis-oxazoline). The list of Nexam products, product segments and partners are impressive. Nexam rests on multiple legs. The Nexam key issue has been (and still is) delays. CESI is convinced that the new CEO Anders Spetz (during a 8-18 months period) will succeed to accelerate and transform the Nexam cutting edge crosslinking technology to a hard core profitable business.

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. 

Nexam (in Swedish!)

Posted: 18 October, 2014 in Published Investment Calls
Tags: , ,

Den viktigaste anledningen till varför undertecknad är övertygad om att Nexam Chemical kommer att överträffa redan högt ställda förväntningar är den vetenskapliga kärnan i företagets teknologi. Till min kännedom har denna vetenskapliga kärna överhuvudtaget inte blivit belyst av analytiker eller journalister. Mycket har skrivits och skribenter har snuddat vid ämnet, men dessa individer har lika snabbt tittat upp och zoomat ut. Jag förstår varför.

Företagets VD Per Morin har hävdat att företagets slutkunder är “i princip alla som tillverkar plast” och han exemplifierar kylskåpsproducenter, bilindustri, flygplansindustri och plastdetaljer. Vidare hävdar han att “för oss är detta nästan som Losec”.

Undertecknad tror inte att Per Morin är medveten om hur vetenskapligt träffsäkert detta Losec uttalande är.

Varför? Jag skall nu kortfattat försöka förklara:

Den aktiva kemiska substansen i Losec har namnet Omeprazol. Omeprazol är en selektiv och irreversibel protonpumpshämmare. Denna hämmare minskar utsöndring av magsyra genom att stänga av magens syrautsöndring. Det genialiska med Ompeprazol finner vi i de molekylära detaljerna. Den viktigaste detaljen är att Omeprazol aktiveras av just magsyra. Molekylen börjar alltså först arbeta då den behövs (vilket sker genom att substansens pyridindel protoneras och då triggas en kaskad av händelser och resultatet blir att magsyrapumpen “stängs av på lämpligt sätt”).

Losec / Omeprazole kan alltså definieras som en målsökande missil.

På samma sätt så finner vi genialiteten med Nexams tvärbindare i de molekylära detaljerna. Tvärbindarmolekyl nummer 1 binder kovalent (=jättestarkt) först till första molekylen av aktuell polymer. Denna nya enhet kallar vi nu tvärbindar-polymer konjugat nummer 1. Detta konjugat kommer sedan att reagera samtidigt både med tvärbindar-polymer konjugat 2 och tvärbindar-polymerkonjugat 3. Det som händer i detta ögonblick är att de tre enheternas centrala fragment (alkyndelen) “parar sig kovalent” och barnet av detta blir en helt ny, väldigt stabil molekyl. Ett benzen derrivat. Detta blir då en ny knut, en ny hub, i den nya polymer strukturen.

Nexams tvärbindare kan alltså definieras som en dubbelt målsökande missil (!)

Olyckligtvis så visualiserar bara Nexam Chemicals denna fantastiska händelse blott med bilder i vilken “tre separata bollar går ihop och lägger sig jämte varandra”. Detta är ej riktigt vetenskapligt korrekt.  Nexams kemibild (se presentationer på är dock förstås blott tänkt att på ett icke vetenskapligt sätt pedagogiskt visualisera det som händer i tvärbindarprocessen. Tyvärr är den så flummig att den blir svår att förstå. Därför blir det också väldigt lätt för kritiker att inte ta Nexams representanter på allvar. Jag har sett detta ske och jag har samtidigt full förståelse att det sker. Detta är olyckligt. Efter Nexams presentation på aktiespararnas event tidigare i veckan så var det många som undrade följande: Vad är egentligen höjden? Hur mycket bättre blir materialet? Min personliga slutsats när jag överblickade denna diskussion var att frågorna överhuvudtaget inte kunde besvaras pedagogiskt av Dane. Han loopade mantrat att “annars skulle inte BASF och de övriga stora aktörerna inom polymer industrin vara intresserade”. Detta är korrekt, men svaret är ej bra, men det spelar heller ingen större roll. Samtidigt krävs det ju en hel del kompetens för att kemiskt övertyga ett gäng “äldre”, relativt negativt inställda icke-kemister, som faktiskt antagligen primärt var på aktiespararnas event för att lyssna till det lokala fastighetsbolaget Platzer :). Undertecknad fick känslan att det var det yngre klientelet som Nexam hade attraherat. Efter dragningen och frågestunden fick jag några minuter med Dane. Självklart var då svaren relativt specifika (eftersom mina frågor också var relativt specifika). Dessa svar höll kvalitet Dane! Tack!

Bild 22 i denna presentation nedan visar Nexams “tre separata bollar som går ihop och lägger sig jämte varandra” :

Istället för att sura över denna bild, så konstruerade jag några egna för att tydligt visualisera den centrala och kritiska molekylen som bildas i Nexams tvärbindningsprocess. Denna visualisering finner du här (kemibild 3 och 4). Bildtexterna är tyvärr fortfarande på engelska, men här visualiserar jag tydligt att man faktiskt bildar en ny stabil “knut molekyl”. Det är alltså så att Nexams “bollar”, dvs polymer aggregat, har bundits samman med starka kovalenta (SP2 och SP3) kol-kol bindningar (i diamant finner vi också (SP3) kol-kol bindningar…)

Här är exempel på företag som Nexam samarbetar med. Enligt Dane har Nexam aldrig “tappat intresse från någon extern part”. Detta var antagligen inte de exakta orden Dane använde, men detta var budskapet.

Nexams teknologi i punktform:

  • Polymererna blir lättare att processa (mindre viskösa oligomerer kan ersätta viskösa polymerer)
  • Nya polymerer i nya processer i nya produkter. Per Morin har tidigare uttalat att “alla som sysslar med plast är potentiella kunder för Nexam” (inkluderat flyg, bilar, detaljer…)
  • Ökad värmestabilitet
  • Ökad kemisk stabilitet
  • Ökad mekanisk stabilitet
  • Ökad UV beständighet
  • Förbättrade totala egenskaper till ett lägre pris
  • Inga större omställningar i befintliga processer behövs (dyr maskinell hårdvara behövs ej)
  • Under de sista 6 månaderna har Nexam introducerat sig för nya stora aktörer
  • Ökad grad av aktivitet i bolaget
  • Blott Armacell och BASF kan separatresultera i en omsättning av 10 MSEK första året och 50 MSEK andra året, med en nettomarginal på 40% (!)
  • Nexam spår att det snart kommer att annonseras nya applikationer (inom elektronik, energisektorn i Asien, Europeisk plaståtervinning)
  • I framtiden predikterar Nexam nya applikationer inom nylon industrin.
  • I framtiden predikterar Nexam några applikationer inom polyolefin industrin.
  • En ny produkt är under utveckling i kina.

Tar Nexam 1 % av marknaden motsvarar detta en årlig omsättning om 15 miljarder. Undertecknad tror ärligt talat detta estimat är lågt, men självklart är det helt omöjligt att sia om framtida marknadsandel. Ett hisnande faktum är samtidigt att om Nexam tar 3% av världsmarknaden så motsvarar detta en årlig omsättning om 45 miljarder. Detta är anledningen till att Nexam handlas till ett aktiepris som idag sammanslaget motsvarar ett bolagsvärde på cirka 0.9 miljarder. Detta kan anses högt. Undertecknad anser att det är väldigt lågt. Just därför äger också undertecknad aktier i detta bolag. Självklart kan man inte annat än säga att Nexam är ett förhoppningsbolag. Undertecknad är dock HELT övertygad om att Nexam kommer att utgöra en liten del av nästa industriella revolution: Förbättrade material genom genialisk molekylär design.

Slutnot: I avslutningsvis nämnda industriella revolution plockar jag även in grafen teknologin. Grafen utgörs av ett 2 dimensionellt monomolekylärt “täcke” av kolatomer cirka 100 ggr starkare än stål. Idag går det, till min kännedom, inte att kostnadseffektivt tillverka dessa monomolekylära “täcken” i nämnvärd industriell skala. Samtliga företag inom detta område är mer eller mindre ren hype, men inte allt för många år till.

I nedanstående länk har jag i mer utförligt format analyserat Nexam (samma länk som ovan).

Undertecknad är  övertygad om att Nexam relativt snart kommer att påbörja samma resa som Hexpol har gjort ( , se 5 årsgrafen…). Denna resa bör dock bli ännu bättre. Time will tell.

The scientific key to the expected near future Nexam Chemical commercial success has not yet been highlighted by analysts. Tentatively, due to a lack of scientific understanding. C.E.S.I. hopes this chemical analysis of the Nexam linker central scaffold also will enlight “non-chemist”. But first, a few quotes and some financial aspects from the recent Nexam interim report (Q2, 2014):

Nexam Chemical 

“Nexam Chemical develops technology and products that make it possible to significantly improve the properties and performance of most types of plastics in a cost-effective manner and with the same production technology intact. The properties that are improved include temperature resistance and service life. The property improvements that can be achieved by using Nexam Chemical’s technology make it possible to replace metals and other heavier and more expensive materials with plastics in a number of different applications. The company was founded in July 2009 after a management buy-out of a crosslinker project from the Perstorp Group. By then, Perstorp had put a number of years into the development of the project, but decided to divest its involvement in the field to instead focus on aldehyde-based chemistry. Nexam Chemical currently has fifteen employees in Sweden and eight in Scotland. The Company’s head office and R&D are in Lund, Sweden, but its production takes place in St. Andrews, Scotland”

Ongoing partnerships and customer projects

“Since Nexam Chemical’s technology was introduced in 2009, a number of development projects and partnerships have been entered into with a range of leading parties, of which several are world leaders in their respective niches. They include BASF, Repsol, IRPC, Sumitomo, ABB, NASA and Rolls-Royce. Nexam Chemical currently works with over 20 of the world’s 100 largest chemicals and materials companies.”

Vision and mission

Nexam Chemical’s vision is to be a recognised world leader in the field of property modification of plastic and polymer materials via heat-activated crosslinking.

The scientific key.

But before C.E.S.I. continues, let´s halt and highlight a few statements depicted in this article:

The author “BSV” quotes (slightly edited and translated by C.E.S.I.)

The article ends with a milestone quote fr Nexam CEO Per Morin quote from a Redeye (video) presentation.

“For us this is almost as Losec, we will be protected for 20 years and we can dictate who will get to do it and on what terms …”

  • C.E.S.I. does not believe that Nexam is developing a ground braking product, because…
  • C.E.S.I. is 100% convinced that Nexam is developing an array of ground breaking products.
  • C.E.S.I. also claims that the CEO´s quote “For us this is almost as Losec” is an understatement in respect to scientific quality.

Why? Here is why:

Losec, i. e. Omeprazole, is a selective and irreversible proton pump inhibitor. It suppresses stomach acid secretion by specific inhibition of the H +/K + ATPase system. Because this enzyme system is regarded as the acid (proton, or H+) pump within the gastric mucosa, omeprazole will inhibit the final step of acid production.  However, the beauty is in the fine details of the chemistry! The drug Omeprazole is activated by stomach acid (by protonation of the pyridine moiety, which triggers the remaining desired cascade of events). Thus, Omeprazole should be defined as a target seeking missile.

Likewise, the beauty of the Nexam cross linker is also in the fine details of the chemistry! Cross linker molecule number 1 covalently binds both the polymer and the cross linker-polymer conjugates of the cross linker molecules number 2 and number 3. Thus, the Nexam cross linker molecules are double target seeking missiles! Thus, C.E.S.I. claims that the CEO statement “For us this is almost as Losec” is an understatement in respect to scientific quality. Both the description, the chemistry, the impact and the hidden simplicity is hard to grasp, especially for a non-chemist..

Therefore, the scientific key will also be explained in one single picture, which was also appreciated the small children of C.E.S.I. In fact, this synthetic scheme was C.E.S.I.s´ contribution to the family´s joint art weekend session…


Nexam PNG

C.E.S.I. was only 99% confident that the combination of the Nexam polymers was a genius application of the historical 1866 Berthelot reaction. This key question had to be addressed, so C.E.S.I. submitted this question and this exact picture included…, to the Nexam CEO Per Morin and Daniel Röme, PhD and NEXAM Director of Business Development & Innovation. The content was much appreciated, confirmed and approved. Logically, Per and Daniel recommended C.E.S.I. to add another 4 words to the title: “A first and simplified crash course on Nexam Chemical Crosslinking perspective”.

Likewise, Per and Daniel also stressed that this simplification dedicated to non-chemists was appealing (Sept 25, 2014). They recommended C.E.S.I. not to edit the early draft picture “too much” (most likely, they also wished you, the reader of the manuscripts´ final version , a few moments of laughter.

However, C.E.S.I. came to the conclusion that a non-chemist still would not grasp the scientific beauty of the Nexam technology. This conclusion resulted in a few additional graphic views to illustrate the Nexam technology:


 Benzene Diamond Graphene Introduction FINAL3


Sunday FINAL Berthelot


CYCLOTRIpng240SUN final

Key scientific messages in these graphic slides:

  • Nexam´s cross linker design is a genius application of the “forgotten” Berthelot reaction
  • The Berthelot reaction – as such – has been ignored (and been forgotten about!) by scientific communities, presumably due to the inherent issues in other non cross-linker applications (i. e. “normal” synthetic chemistry).
  • The core of the Nexam cross linker technology end-products is a Benzene derivative. Benzene derivatives are very stable. This derivative should be a perfect central hub (=knot) in most multidimensional polymer frameworks! Nexam technology is not solely genius – It is unique!

Nexam competitors?

C.E.S.I fails to find Nexam competitors. Most likely, there is competition in this specific cross linker technology, but C.E.S.I. can not find any relevant “Nexam threats”. The most interesting finding is this article:

“TechnoCompound offers nylon 6 compounds that can be crosslinked with standard electron-beam technology, including conveyor batch processing, in-line wire/cable processing, and film/sheet processing. Companies can utilize existing electron-beam processing equipment to replace higher-cost thermoplastics with high-performing and more economical crosslinkable nylon (see Table 1). TechnoCompound’s compounds have been targeted for electrical connectors, with a strong focus on automotive applications where higher temperature performance is required.”

And the article summarizes:


Most of the development activity and commercial use of crosslinked nylons has taken place in Europe and Asia. Sumitomo Chemicals was among the first companies that pursued crosslinked nylons. By 2005, the company had developed new radiation-crosslinking nylon 66 molding compounds, which were adapted commercially for heat-resistant electrical connectors.

In late 2011, BASF (U.S. office in Florham Park, N.J.) and Sweden’s Nexam Chemical, a supplier of heat-activated crosslinkers for polymers, forged an exclusive cooperation agreement to develop and commercialize crosslinkable nylon 66 for automotive and electrical/electronic applications as initial targets.

Foster Corp., Dayville, Conn., developed its Fostalink crosslinkable elastomeric nylon compounds for medical applications such as catheters and valving, and nonmedical applications such as heat-shrink valving.”

C.E.S.I. : Examples of TechnoCompound´s crosslinker technology and specific cross linkers:

“Nylons 6, 66, and 11 can be radiation crosslinked, but the first two require addition of a crosslinking agent. For example, the polyfunctional monomer triallyl isocyanurate or triallyl-cyanurate can be compounded into nylon pellets. The crosslinkable pellets can then be molded, extruded, or otherwise formed into the final product”

A google triallyl isocyanate price search, makes C.E.S.I. feel like the scientist Mr Walt in the cutting edge quality TV series “Breaking Bad”:

Despite the low cost of “triallyl isocyanate” (1-2 US$ / Kilogram), this cross linker is based on “electron beam technology”, which to C.E.S.I seems inferior to standard heat activation of cross linkers (Nexam-BASF. Nexam-Armacell, Nexam-X, Nexam-Y etc. etc.)

Very interestingly, the Nexam CEO Per Morin touch upon this subject in an Nexam Video interview (June 10th, 2014). His conclusions are in accordance with the C.E.S.I. conclusions: “Electron Beem technology has been around for 50 years, it´s simply too expensive”—intervju-med-vd-per-palmqvist-morin-och-forskningschef-dane-momcilovic/

And the competition from the giants within Process Polymer industry? Well, it seems that theese “key industry leaders” are aligning themseves to the core Nexam technology…

Nexam – Scalability issues?

Daniel Röme, PhD and NEXAM Director of Business Development & Innovation and Per Morin Nexam CEO:

Translated and slightly edited by C.E.S.I (!):

“I judge the risk of being unable to scale up production as relatively small,” says Daniel Rome. Instead, he assesses the risk of postponed projects as higher. This has happened before for Nexam. When plastic manufacturers are in reorganizations or depressed market conditions, they prioritize ongoing projects and existing customers in front of the development projects in where Nexam are involved. Nexam believes it can provide more information about pet foam-scaling during September or at the next quarterly report, and CEO Per Morin estimates that Nexam could ultimately turnaround around 50 million a year on the pet foam project with this specific client. Generally, Nexam Chemical aims towards gross margins around 40-50 per cent, he says, but declines due to many uncertain parameters to provide any more long-term sales forecast. According to the Nexam CEO, Per Morin: Today, we can not see a need for a rights issue to scale up production with connected associated working capital requirements, “No, instead we’ll solve the working capital requirements by negotiating with our customers and suppliers”

Original swedish version in link below (please use google translate):
C.E.S.I. conclusion: Nexam is Nexam´s worst enemy, or?

The molecules, i. e. the products, in the Nexam pipeline are extremely easy to synthesise for most chemists ( a person skilled in the art of constructing new molecules). One might argue that Nexam can produce the linkers in the most cost efficient way and this might be true today, but potentially not in the future or even near future. C.E.S.I. predicts that it would take an experienced Synthetic Chemist (e. g. C.E.S.I.) approximately 5-15 days to synthesize (= to construct) one or a few grams of cross linker material. C.E.S.I. has + 13 years of experience in small scale small molecule synthesis. C.E.S.I. can not understand that a high quality process company with a vibrant creative environment should, per default, fail to copy the Nexam cross-linkers with roughly the same production cost (or even at lower production). Therefore, securing the intellectual Property (IP) must at all times be on top of Nexam´s highest priority agenda. From the massive IP press release news flow from Nexam, C.E.S.I. concludes that the Nexam CEO and the Nexam board has understood this key issue. Thus, C.E.S.I. is thrilled of excitement. Now, it seems that analysts and the market “demand” a big order from a key industry process company. Today, C.E.S.I. does not share the analyst’s and the market´s demand. C.E.S.I. would like to see even a few more “new patent press releases” prior to the announcement of the first big order. However, the recent small order announcement is a key milestone (see below). This order is a another “proof of concept” i. e. it is a solid proof that the nexam technology is not solely of academic interest… C.E.S.I. predicts that Nexam will be a key player in the next industry revolution (New superior bulk- and advanced materials).

The world of plastics and polymers is wide and complex. There are tons of materials out there and only some of them can and have been optimized for use in 3D printing. So, if you were a company that produced some of the most advanced polymeric mixes out there, what would you do? You would probably do what Sweden based Nexam Chemicals just did for its PEPA Crosslinker: develop a process for using it for 3D printing with thermoplastics.

Nexam is known for developing technology and products that improve the properties of polymeric materials using conventional processing equipment (i.e. extruders). Its technology is used for cross linking polymers (which in principle can consist of an unlimited number of monomers) and oligomers (which consist of only a few monomers) to create new cross linked polymers with superior properties.

Controlled crosslinking can give the original polyamide enhanced properties in terms of chemical resistance and thermal/dimensional stability, make it stronger during use and make it more recyclable. It can also improve throughput and enable new processes.

According to the latest Chinese patent filed in China by the Institute of Chemistry at the Chinese Academy of Sciences, that is what the Crosslinker PEPA material (aka Neximid 100) will do, by enabling new methods and new capabilities for 3D printing of polyamide thermoplastics, giving nylon properties that in certain circumstances may allow it to be used to replace metal components.

And the current Nexam portfolio? There is still room for improvements.


Nexam produktportfölj by CESI

Nexam – Better plastics, Final conclusions by C.E.S.I.

  • Increased processability equalls…
  • New polymers in new processes in new products
  • Increased thermo stability (heat stability)
  • Increased chemical stability
  • Increased mechanical stability
  • Increased UV
  • Increased “total plastic properties” to a reduced price
  • Nexam´s customers can direct use the Nexam products, without associated major hardware refurbishment costs
  • Last 6 months: The Nexam technology has been introduced for new world leading companies.
  • Increased level of activity in the company
  • Solely, the Armacell and BASF project can respectively result in a turnaround of 10 mSEK year 1 and 50 mSEK year 2 – with a net marin of 40% (!)
  • Nexam predicts that news regarding more new applications soon will be announced (electronics, Asian energy sector, european plastic recycling projects),
  • In the future: Nexam predicts additional new nylon applications
  • In the future: Nexam predicts ”some concepts involving polyolefins”
  • A new product is under evaluation in china

The Nexam case is – without competition – C.E.S.I.s´ all time favorite company and investment call!

A prediction of the near future share price is slightly silly and surprisingly difficult.

A prediction of the 2019 year share price is also slightly silly, and also impossible.

C.E.S.I. is biassed and extremely positive.


Nexam End 1


End 3

C.E.S.I. has granted the approval to share these official Nexam slides (Per Morin). Original material is available at (presentation section)

Interim Financial Statements for Quarter 3, July–September 2014

Entering into a new phase with high speed

Several new projects have been initiated during the quarter, mainly with European customers, and Nexam Chemical has delivered products to several of them. Our partnership with Armacell is progressing, albeit with some delays. We are also poised to begin a project funded by Eurostar that we will be working on together with Armacell and The European Van Company. The aim of the project is to upgrade recycled PET for use in PET foam and other applications. We were informed in the summer that this project will receive funding from Eurostar. In addition, many other entities in Europe are testing Nexam Chemical’s formulations mainly for upgrading recycled PET resin for various applications. Nexam Chemical entered into a cooperation agreement with its polyethylene partner IRPC over the summer for development and commercialization of modified polyolefins. IRPC has informed us that they now have passed the development phase, with respect to a polyethylene quality for pipes, and will begin testing the quality for approval together with their end client in the autumn/winter. This will be an interesting and potentially large application area for our company. Nexam Chemical held a technical launch of its new high-temperature resin, NEXIMID® MHT-R, in the beginning of October and we have already received several inquiries from around the world. In addition to the project with Rolls Royce and Swerea SiComp, we are expecting several companies to initiate projects with the new resin in the coming years. The in-depth section of this report features a fairly new area for Nexam Chemical: liquid crystalline polymers, or LCP plastics as they are often referred to. This material is rapidly gaining ground, especially in the electronics industry, where Nexam Chemical has already established itself as a supplier of products for property improvement.

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.