Biodegradable-Plastics – DSM-Dyneema 22-04-2022
Biodegradable-Plastics – DSM-Dyneema
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There is nothing circular about compostable packaging, according to one expert on sustainability. In fact, biodegradable plastics ultimately add to greenhouse gas emissions.
Making plastics disappear — it’s the wish of many, especially resonant as Earth Day approaches, and the aim of numerous bans on single-use plastics and plastic bags.
But outside of banning plastics, creating biodegradable plastic products that compost into nothing at the end of their life might seem like a reasonable alternative — an additional tool in the quiver of green tactics. Biodegradable-Plastics – DSM-Dyneema
Not so fast, cautions one expert.
While biodegradable plastics certainly exist — in fact, eight versions are vying for this year’s Tom Ford Plastic Innovation Prize — the fact that material science affords the opportunity to create plastics that disappear doesn’t necessarily make this the best course of action.
In fact, overall, biodegradable plastics ultimately add to greenhouse gas (GHG) emissions, said Bob Lilienfeld, Executive Director of the Sustainable Packaging Research, Information, and Networking Group (SPRING) in Broomfield, CO.
“The issue isn’t whether or not material is available,” Lilienfeld asserted. “The issue is whether or not it makes any kind of sense. If you’re a believer in the concept of the circular economy, there is nothing circular about compostable packaging. It’s designed to end up in an industrial or home compost facility — the result of which is greenhouse gases.”
In an October 2021 presentation titled, “Avoiding the Plastics Biodegradation Minefield,” Lilienfeld stressed several caveats and clarifications when discussing the concept of compostable plastics, to wit:
Biodegradation occurs when materials are broken down by bacteria, fungi, or other biological means.
Biodegradation is not the same as composting, and industrial and home composting are not the same. Some materials that are industrial compostable are not home compostable.
Fragmentation and disintegration are not forms of biodegradation, but can sometimes lead to biodegradation. Biodegradable-Plastics – DSM-Dyneema
In fact, to be considered “industrial compostable,” Lilienfeld explained, a plastic product must meet ASTM-D6400 or EN 13432 standards by biodegrading 90% in 180 days in aerobic conditions or disintegrating 90% in 12 weeks (ISO 16929).
Avient Corporation , a leading provider of specialized and sustainable material solutions, today announced that it has entered into an agreement with Royal DSM (“DSM”) to purchase the DSM Protective Materials business (including the Dyneema® brand) (the “Dyneema business”). The purchase price of $1.485 billion is subject to certain customary adjustments. In conjunction with this proposed acquisition, Avient has also announced that it plans to explore sale options for its Avient Distribution business. Biodegradable-Plastics – DSM-Dyneema
“We are thrilled to add the Dyneema® brand and its unique technologies to Avient, further expanding our growing composites portfolio,” said Robert M. Patterson, Chairman, President and Chief Executive Officer, Avient Corporation. “For 10 years, we have been building our advanced composites platform by focusing on high-performance materials for applications where failure is not an option. The addition of the Dyneema portfolio will raise Avient’s material offerings to the highest levels on the performance spectrum of composites and engineered fibers.”
The foundation of the protective materials business of DSM is the renowned technology and globally admired brand of Dyneema®, the World’s Strongest Fiber™. The ultra-lightweight specialty fiber is 15 times stronger than steel and is used in demanding applications such as ballistic personal protection, marine and sustainable infrastructure, renewable energy, industrial protection and outdoor sports. Estimated sales and EBITDA for the Dyneema business in 2022 are approximately $415 million and $130 million, respectively. The business includes six production facilities, four R&D centers and approximately 1,000 employees located around the world.
Excluding intangible amortization, the acquisition will be immediately accretive to EPS, adding approximately $0.35 per share on a pro forma basis for 2022. Further, Avient’s composites platform with the Dyneema business will represent over 50% of the company’s Specialty Engineered Materials segment sales.
“In conjunction with our intent to acquire Dyneema, we plan to explore a potential sale of our distribution business,” said Mr. Patterson. “This would allow Avient to remain modestly levered at 2.9x adjusted EBITDA while also expanding adjusted EBITDA margins from 12% to 18%, the highest amongst our formulator peers.”
The acquisition has been approved by the Boards of Directors at both Avient and DSM and is expected to close later this year, subject to the satisfaction of customary closing conditions. Biodegradable-Plastics – DSM-Dyneema
Committed financing for the acquisition is being provided by Morgan Stanley and J.P. Morgan. Jones Day served as outside legal counsel to Avient.
Avient will host a webcast on Wednesday, April 20, 2022 at 9:00 a.m. EST to discuss the key highlights of the expected acquisition of the Dyneema business as well as its first quarter 2022 financial results.
Biodegradable-Plastics – DSM-Dyneema