Thales to buy Cobham Aerospace Communications for $1.1 billion.

French defense and technology group Thales announced on Wednesday that it is currently in exclusive negotiations to acquire aerospace supplier Cobham Aerospace Communications for $1.1 billion. This move has propelled Thales shares up by over 3% as the company places its bets on connected cockpits.

As the world's third-largest producer of avionics for civil jetliners, Thales expects this all-cash acquisition to enhance its sales growth and operating profitability significantly. Furthermore, it positions the company to capitalize on the consistent demand for secure connectivity.

Based in Paris, Cobham Aerospace Communications specializes in manufacturing antennas and communication systems. According to Thales' statement, the company is projected to generate around $200 million in revenue in 2023. Among its products are satellite and digital radio systems installed on popular Airbus and Boeing aircraft, facilitating data handling and improved audio connections.

Connected cockpit systems play a crucial role in integrating data from various aircraft and ground applications. Establishing continuous and secure connections is vital for achieving more efficient flight trajectories, thereby reducing delays and lowering emissions. Additionally, this technology may support increased pilot autonomy in the future.

Thales has valued the acquisition at approximately 17 times the forecasted 2023 operating profit before synergies or 15 times after considering synergies, which amount to $10 million per year in costs and $40 million per year in revenues through cross-selling opportunities.

Moody's Investors Service senior analyst Vitali Morgovski commented that while the valuation multiple appears rich at 17 times, the profitability and strong revenue potential of the acquired business help offset it.

The deal is expected to boost Thales' operating margins from the first year, with profit margins estimated to be above 30%, which is approximately double Thales' current avionics margins.

The acquisition aligns with the increasing production by planemakers and the development of the next generation of single-aisle planes that are expected to incorporate greater connectivity features.

The Aerospace Xelerated programme has announced that it has opened calls for applications. Following three cohorts headed up by Boeing and supported by industry partners, the programme will now be run in partnership with the Tawazun Economic Council, the defence and security acquisitions body of the United Arab Emirates.

Startups from anywhere worldwide working on digital services and solutions are encouraged to apply. Applications open today and close on 25 September.

Aerospace Xelerated and Tawazun highlight their shared focus on innovation and point out that the partnership is part of their joint mission to "empower entrepreneurs" to develop ideas that solve real-life problems and move the aerospace sector forward.

Based in Abu Dhabi, Tawazun acts as a catalyst for economic growth and the further development of the defence and security industry in the UAE.

Part of its role in Aerospace Xelerated will be to advise and partner with startups as they navigate their way into new markets in the Middle East. Tawazun will also serve as a guide to companies and provide support for market expansion, developing new products, and facilitating local industry connections.

Startups accepted into the programme will have the option to benefit from a £100,000

(€118,000) investment from Boeing, with the potential for additional funding from partners throughout the region. They will also have access to strategists and technical experts from industry to support the development of proof of concept opportunities.

Startups taking part in the 12-week programme will also be introduced to a network of angel investors, venture capitalists and key stakeholders in the aerospace sector.

Mentoring will also be available from a global network of experienced entrepreneurs, as well as more than £100,000 in perks from partners including Oracle, Amazon, HubSpot, and Digital Ocean, amongst others.

Aerospace Xelerated is looking for startups in the field of digital services and solutions. Companies must be mid-late seed stage; preferably working on software solutions; and at a traction stage with proof of concepts, contracts already in place, revenue and/or letter of intent. The programme does not require the startups to be operating in the aerospace sector.

Nichola Bates, Managing Partner at Aerospace Xelerated and Head of Global Accelerators and Innovation Programs at Boeing, said: "This partnership between Aerospace Xelerated, Tawazun and Boeing is a further testament to our global presence and our commitment to supporting entrepreneurs and innovation irrespective of their country of origin.

"When it comes to global startup hotspots, few places are as exciting as the UAE. It’s hard to match the extraordinary mix of dynamism, growth, tech, strategic location, and government incentives that the Emirates has to offer. Having the programme launch out of the UAE will provide further market access not only to the UAE but to all of the Middle East, Turkey and Africa regions thanks to the strategic geographical location, as well as the global expansion initiatives that the UAE has accomplished to date."

Abdullah Al Awani, Executive Director of Economic Partnerships at Tawazun Economic Council, added: "Tawazun is committed to the promotion of innovation. Through a continued focus on technology, we aim to increase efficiency, drive industry best practices and support SME growth. We are very excited and proud of our partnership with Aerospace Xelerated on their fourth Cohort as it perfectly aligns with our mission to drive economic value, facilitate ecosystem growth and empower technology and people who are innovating."

Since launching in 2019, startups involved in the three previous Aerospace Xelerated cohorts have gone on to raise over £100 million in additional funding and create over 150 jobs across the UK and globally. Organisations to work with past cohorts as partners or mentors include PWC, Frazer-Nash, Chevron Technology Ventures and EasyJet.

New developments in the Chemicals & Biochemicals

from Zhanjiang to KHUA

BASF and Zhejiang Guanghua Technology Co.,Ltd. (KHUA) have signed a Letter of Intent (LoI) for the supply of Neopentyl Glycol (NPG) from BASF’s Zhanjiang Verbund site to KHUA. This agreement marks a significant milestone in the long-term partnership between both parties.

BASF und Zhejiang Guanghua Technology Co.,Ltd. (KHUA) haben eine Absichtserklärung (Letter of Intent, LoI) über die Lieferung von Neopentylglykol (NPG) vom BASF-Verbundstandort Zhanjiang an KHUA unterzeichnet. Diese Vereinbarung stellt einen wichtigen Meilenstein in der langfristigen Partnerschaft zwischen beiden Parteien dar. Das Foto zeigt die Unterzeichnungszeremonie. Vordere Reihe, von links nach rechts: Haryono Lim, Senior Vice President, New Verbund Site China, BASF, Yao ChunHai, General Manager, KHUA, hintere Reihe, von links nach rechts: Vasilios Galanos, Senior Vice President, Intermediates Asia Pacific, BASF, Hong Tao, stellvertretender Sekretär und stellvertretender Leiter des Joint Party Committee of Advanced Manufacturing Key Project Construction Taskforce von Zhanjiang Economic & Technological Development Zone (ZETDZ) und Fenyong High-Tech Zone, Jeffrey Sun, Vorsitzender, KHUA. / BASF and Zhejiang Guanghua Technology Co.,Ltd. (KHUA) have signed a Letter of Intent (LoI) for the supply of Neopentyl Glycol (NPG) from BASF’s Zhanjiang Verbund site to KHUA. This agreement marks a significant milestone in the long-term partnership between both parties. Photo shows the signing ceremony. Front row, left to right: Haryono Lim, Senior Vice President, New Verbund Site China, BASF, Yao ChunHai, General Manager, KHUA, Back row, left to right: Vasilios Galanos, Senior Vice President, Intermediates Asia Pacific, BASF, Hong Tao, Vice Secretary and Vice Chief Commander of Joint Party Committee of Advanced Manufacturing Key Project Construction

Taskforce by Zhanjiang Economic & Technological Development Zone (ZETDZ) and Fenyong High-tech Zone, Jeffrey Sun, Chairman, KHUA.

KHUA, a reputed manufacturer of saturated polyester resins for the powder coatings industry in China, is planning to build a 100 kilotons per annum (KT/a) production plant for high-end powder coatings resins in Donghai Island, Zhanjiang Economic & Technological Development Zone, where BASF is building a world-scale NPG plant with an annual production capacity of 80,000 metric tons.

“We have high hopes of BASF’s Zhanjiang Verbund site, which will set a new standard in the petrochemical industry by utilizing clean energy, conserving energy, and reducing emissions. Leveraging our competitive advantages, backed by the strategic partnership with BASF, one of the world’s leading NPG suppliers, as well as Zhanjiang’s unique geographical location, we are confident in the success of our 100KT/a powder coating resin expansion project. This will enable us to reduce VOCs and contribute to a sustainable future with clear blue skies and white clouds,” said Jeffrey Sun, Chairman, KHUA.

With the new NPG plant at the Zhjanjiang Verbund site expected to be available from Q4 2025, BASF’s global NPG capacity will be boosted from 255,000 metric tons to 335,000 metric tons annually, strengthening its position as one of the world’s leading NPG manufacturers. Upon completion, this will be BASF’s fifth NPG plant, following the ones in Ludwigshafen, Germany; Freeport, Texas, United States; as well as Nanjing and Jilin, China.

NPG is an intermediate mainly used in the production of powder coating resins, which are particularly successful for the coating of household appliances and in the construction industry. Due to their low volatile organic compounds (VOC), powder coatings enable their users to comply with VOC emission standards by reducing the release of VOCs by up to 50% compared to liquid coatings. Other applications for NPG include the manufacture of lubricants, plasticizers and pharmaceuticals.

Asahi Kasei and Mitsui to Establish Supply and Procurement Systems for Biomethanol

Asahi Kasei Corporation and Mitsui & Co., Ltd. will establish a supply and procurement scheme for bio-methanol produced in the United States. Through this scheme, Asahi Kasei plans to use the bio-methanol procured from Mitsui to produce in Japan engineering plastics with a lower carbon footprint than existing products.

Today, companies in Japan are increasingly stepping up their efforts to reduce GHG emissions throughout their product supply chains, including raw material-derived greenhouse gases, known as Scope 3 emissions, in order to achieve carbon neutrality by 2050, as advocated by the Japanese government. In this context, Asahi Kasei is working to reduce GHG emissions by manufacturing various engineering plastics, such as TENAC™, a polyacetal (POM) resin, using biomass-based materials with low GHG emissions. Asahi Kasei and Mitsui are working together to find solutions to various issues related to material procurement.

In the United States, Mitsui procures RNG (renewable natural gas) generated from municipal waste landfills in the form of biogas and uses it in the mass balance approach*2 to produce biomethanol at Fairway Methanol, a local joint venture. Asahi Kasei and Mitsui have acquired the International Sustainability & Carbon Certification (ISCC PLUS certification) for their supply chains in order to prove the raw material’s sustainability features for use in final products.

This will enable Asahi Kasei to procure biomethanol manufactured by Mitsui, and to sell various types of engineering plastics which contain the correct amount of biomass raw material allocated under the mass balance approach.

The Asahi Kasei Group aims to contribute to a carbon-neutral and sustainable world under its slogan of “Care for Earth” by focusing on initiatives such as the use of biomass raw materials, recycled raw materials, and renewable energy. The company strives to meet the expectations of its customers and society by further advancing the provision of products and services with such sustainable characteristics while deepening collaboration with other companies based on its medium-term management plan for fiscal 2024, under the theme of "Be a Trailblazer".

Mitsui is striving to reduce the Scope 3 GHG emissions of its customers by using the expertise, knowledge, and products of a variety of its businesses, including the provision of low-carbon methanol, such as bio-methanol, and to contribute to the sustainable development of all society.

Indaver Chooses Coperion Twin Screw Extruder for Plastics2chemicals Plant

Coperionwill deliver a ZSK Mc18 twin screw extruder and corresponding peripherals for a Plastics2chemicals (P2C) plant that Belgian waste management company Indaver is building to chemically recycle plastic waste. The P2C plant is currently under construction in Antwerp, Belgium and is expected to annually transform 30,000 tons of so-called end-of-life plastics into high-quality basic chemicals.

Indaver decided upon Coperion’s twin screw extruder technology to ensure energy-efficient, continuous reactor loading in the chemical plastics recycling process. Along with the ZSK extruder, the order includes Coperion K-Tron gravimetric feeders, a vacuum unit, a closing valve, and the melt line to the reactor.

Where mechanical plastics recycling reaches its limits, Indaver picks up with its innovative Plastics2chemicals depolymerization process. The company reclaims materials from mixed polyolefin and polystyrene streams, closing the loop for these plastics with no loss in quality.

In the P2C recycling process, plastics are broken down into shorter carbon chains or monomers. Base products such as naphtha (raw benzine) and wax result from polyolefins (PE and PP). Polystyrenes are split into monomers that can be reused as raw material.

The Coperion ZSK Mc18 twin screw extruder assumes a central function in Indaver’s innovative P2C process. Before plastic waste can be fed into the reactor, it must pass through the ZSK extruder’s process section at throughputs of up to 3.7 tons per hour. Using intensive shearing and dispersion, the ZSK extruder’s twin screws introduce a large amount of mechanical energy into the material stream in a very short period of time. In just 30 seconds, the agglomerated post-consumer waste is transformed into a homogeneous, up to 350°C (660°F) hot melt in an energy-efficient process.

A Coperion K-Tron gravimetric feeder continuously feeds agglomerated plastic waste into the twin screw extruder. The melt exits the ZSK extruder just as uniformly, ensuring constant loading of the likewise continuously operating P2C plant’s reactor.

An additional Coperion K-Tron gravimetric feeder regulates the addition of additives into the ZSK extruder’s process section, where they are homogeneously mixed in. At the same time, the remaining moisture in the agglomerated plastic is reduced via the ZSK extruder’s devolatilization.

The high added value of the ZSK extruder in Indaver’s Plastics2chemicals depolymerization process has been proven in comprehensive tests at Coperion’s Test Center. According to Frank Lechner, General Manager Process Technology and Research & Development at Coperion: “ZSK twin screw extruders possess numerous advantages that are especially beneficial in chemical recycling. Thanks to the twin screws’ effective operation, plastic energy dissipation takes place in no time – one core advantage for energy efficiency. In chemical recycling, ZSK technology covers a very wide throughput range of 1 kg to 20 tons per hour, allowing high-capacity product streams to be processed, even those anticipated in the future.

Paul De Bruycker, CEO of Indaver, explained: “Our innovative Plastics2chemicals project positions us to recycle plastics and successfully transform them into basic chemicals for industry. In so doing, we will achieve our goal as a waste removal company of playing an important role in the circular economy. We will reclaim valuable raw materials from plastics which will generate added value for society and for our customers.”

Sulzer Chemtech’s crystallization technology helps drive DSI’s growth

Prior to the delivery of the purification unit, Sulzer Chemtech completed extensive feasibility and pilot testing ahead of its basic engineering package. This helped ensure DSI to produce different concentrations, including levels of up to 99.9 wt% at an overall production capacity of 7’000 metric tons per annum.

Tthat can be used for applications with stringent quality requirements.

DSI’s facility in Serang processes naphthalene from coal tar to deliver the valuable chemicals. To this end, the plant has been producing naphthalene related products.

In order to increase the purity level of its raw materials and end products as well as serving the broader downstream sector, the company selected Sulzer Chemtech’s proven falling film crystallization technology. This is currently used by leading naphthalene producers and processors worldwide, enabling them to deliver high quality aromatics.

Song Ho Kim, President of DSI, says: “We are extremely happy with the collaboration established with Sulzer Chemtech. Their solution for crystallizing naphthalene is a leader in the market, so when looking at advancing our offering, we were confident we should invest in this technology. The flexibility of our operations will also be improved, helping us address different market needs while optimizing operational expenses and profitability. We look forward to installing the unit and beginning our first-grade naphthalene operations shortly.”

Etienne Rigaut, Head of Crystallization at Sulzer Chemtech, adds: “For decades, we have been supporting the most challenging separation processes with state-of-the-art crystallization equipment. Thanks to our extensive expertise, combined with testing and engineering capabilities, we have been able to deliver a customized unit that will help DSI enhance its competitiveness in the marketplace. We strive to support our customers and the entire sector with cutting-edge technologies.”