ADHESIVETRENDS
An e-newsletter from ITW TACC

February/March 2005

ADHESIVE
MATERIALS

What goes into making an adhesive is as important as what it's used for. Raw materials, manufacturing processes and production systems all contribute to the cost of adhesives.  The ADHESIVE MATERIALS section of our newsletter includes updates on current material and production issues.

U.S. Competing With China For World Oil

Due to China’s need for a steady supply of energy and raw materials, the stable state of US-China relations may soon be replaced by political conflict. China is being pulled into deeper political involvement with the United States in regions where the U.S has long enjoyed a near monopoly on international influence, according to Ian Bremmer, President of the World Policy Group in a recent article in FORTUNE Magazine. China’s need for oil is staggering. Having become a net importer of oil only in 1994, China now imports half its daily consumption. Its demand for oil surged nearly 40% in the first half of 2004, accounting for roughly one-third of the increase in world oil consumption. If China’s oil demand grows at an average rate of 7% a year (as it has since 1990), it will be consuming 21 million barrels a day by 2022 – equaling the amount currently used in the U.S. To meet its growing demand for oil, China is looking to negotiate long-term contracts with oil-rich countries including Iran, Venezuela, and Russia, putting it in direct competition with the United States. In November 2004 China signed the largest energy deal in Iran’s history – an agreement to buy 250 million tons of liquefied natural gas over 30 years. Iran will also export 150,000 barrels of crude oil per day to China once Sinopec, a Chinese state-owned energy company, has developed Iran’s Yadavaran field. The deal is valued at $70 billion. In Venezuela, China has reached an agreement to gain development rights to 15 oil fields and will be allowed to build refineries there. China and the U.S. are also competing for oil in Russia. To reduce its dependence on the Middle East, the United States is using cooperative pipeline projects with Russia to move oil through Siberia to Murmansk, where it can be pumped into tankers and shipped across the Pacific. But China also wants that oil to fuel its economy. Despite their rivalry, the two countries depend on each other for success – even economic stability. Chinese demand is a stimulant for the global economic growth on which American prosperity depends. And China, because it exports so much to the U.S., has built up a trade surplus that is invested largely in U.S. Treasuries. A quick withdrawal could raise interest rates here and undercut world economic growth. Global demand for basic commodities including oil and chemical feedstocks will continue to put pressure on supply and force up prices. Long-term structural changes to our economy mean long-term structural changes to our businesses. In these times, tough decisions will need to be made. It is our view that the time is right to take a pro-active stance toward alternative technologies.

REGULATORY
UPDATE

Adhesive users face formidable challenges to their profitability: environmental regulations, safety liability and insurance costs are just a few. Knowing what lies ahead is important to success. It is rugged terrain--regardless of where you do business. REGULATORY UPDATE provides a look at key regulatory issues affecting your business.

DISPOSAL OF CONTAINERS IS NO DUMP AND RUN

What are you doing with your empty chemical containers? If you are like most companies, you are probably undertaking the easiest short-term solution: dumping them in your regular trash pick-up and letting someone else worry about final disposal.

Before you dump your next "empty" drum, you might want to know that there's more involved with the disposal of a steel drum than most people consider. For instance, a drum is required to be emptied in accordance with federal Environmental Protection Agency (EPA) regulations. And according to EPA regulations, "empty" is defined as less than one inch of residue remaining in the drum. If not emptied to this standard, drums legally cannot be disposed of in solid-waste landfills and would be treated as hazardous waste, requiring more stringent disposal regulations.

One convenient way to remain compliant and eliminate liability concerns is to send your empty containers to a Drum Reconditioner, who then takes on liability responsibility. Reconditioned drums are cleaned, recycled and sold back into industry at lower costs.

ADHESIVE
SOLUTIONS

With so many challenges to overcome, no single adhesive can possibly satisfy every requirement. That is why it is important to know what choices are available. Our ADHESIVE SOLUTIONS section aims to keep you abreast of the latest Research & Development news at ITW TACC.

Adhesive Canisters: Simply Saving Time and Money
When HPL is part of your cabinet, countertop and interior fixture jobs, assembly time and material costs can quickly eat away at the profits you hoped for. An easy solution: Adhesive Canisters!

A self-contained canister system consists of nothing more than a canister of adhesive, hose and spray gun. Its simplicity will dramatically lower the time and cost of bonding materials in your shop.

And don’t forget that canisters come in a variety of formulas, including low-VOC and nonflammable.

Setting Up and Cleaning Up
Adhesive canister set-up can be achieved in the time it takes to turn the valve to “open”. There’s no pouring liquid adhesive from a pail, cleaning up spillage or recapping everything. Cleaning up with an adhesive canister requires simply locking the spray gun.

Adhesive Waste
Very little if any adhesive material is wasted using canisters. That’s because the adhesive applied from a canister is completely contained and cannot spill. And because the inside of the canister is pressurized, every drop of adhesive material is actually used.

During the spraying process, the spray gun of an adhesive canister performs with the touch of an aerosol. This means more consistent application and less over spray than with a spray pot system.

Equipment Costs
Spray pot equipment and two-part adhesive systems are no minor investments. A canister system consists of a re-usable canister (from 11 lbs to 350 lbs), hose and spray gun. The difference in costs over even a short period of time can amount to several thousands of dollars.

Convenience and Maintenance
At under 40 lbs., you can easily carry a canister (containing thousands of square feet of bonding coverage). Move it as needed to complete your operation (see lean principles), or to remote job sites.

Once you finally empty a canister, we will pick it up with your next order. No drums laying about behind the shop and no disposal fee. Just let us know and we’ll take it off your hands, no cost and hassle free.

Easy Storage & Disposal

Lock spray gun when canister is not in use. Only turn canister valve back to OFF position when canister is empty.

Keep canister away from excessively hot or cold rooms and floors.

Place canister on skid or cart to keep proper temperature and maintain consistent performance.

The Purpose of ADHESIVETRENDS
As the leading manufacturer of adhesives for professional and industrial use, ITW TACC believes it has a responsibility far beyond providing innovative products. Our goal is to help distributors and customers strive for greater productivity, profitability and responsibility. Knowledge is crucial to meeting these goals. And as adhesive and global issues increasingly affect your business and ours, our e-newsletter-- ADHESIVETRENDS -- will attempt to communicate timely information to assist you in preparing for the future.

Please tell us if you wish to see more or different kinds of information in ADHESIVETRENDS. In this way, we can improve ADHESIVETRENDS to be most helpful. ITW TACC's Customer Service agents are waiting to hear from you. Please contact us at 1-800-503-6991 or info@itwtacc.com. To be removed from future mailings, let us know at info@itwtacc.com.

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