Pioneering Innovation and Sustainability in Engineering Materials

In an exclusive interview with Dr. Nileshkumar Kukalyekar, Business Director at Envalior, shares insights into the strategic vision and future goals of the company formed by merging DSM Engineering Materials and LANXESS High-Performance Materials. 

Dr. Kukalyekar elaborates on Envalior's commitment to innovation, sustainability, and market adaptation, positioning the company as a global leader in the engineering materials industry. This conversation delves into Envalior's latest R&D innovations, sustainability initiatives, emerging technologies, and strategic goals for the next decade.

Excerpts:

DQ: Envalior was formed by merging DSM Engineering Materials and LANXESS High-Performance Materials. Can you discuss the vision behind this merger and how it aims to position Envalior in the global market?

Dr. Nileshkumar: Envalior was established in April 2023 through the merger of two leading entities in the engineering materials sector: DSM Engineering Materials (DEM) and LANXESS High-Performance Materials (HPM). This union has created a new global powerhouse in the industry, positioning Envalior among the top global engineering materials companies, with a turnover of approximately EUR 4 billion, a workforce of about 4,000 employees, and a strategic global presence spanning Asia, Europe, and the U.S.A. Organized into three distinct divisions—Performance Materials, Specialty Materials, and Intermediates—Envalior boasts a comprehensive value chain with strong backward integration capabilities. As a focused industry leader, Envalior is committed to innovation, adapting to changing market dynamics, and meeting evolving customer needs with a strong emphasis on sustainability. The company aims to capitalize on significant opportunities in the transition to low-carbon and circular materials, elevating both businesses and teams. Our mission is to develop carbon-efficient and circular technologies that provide sustainable solutions across the entire value chain, from customer applications to reducing emissions and energy consumption in our global manufacturing operations.

DQ: With a focus on making electronic devices safer, thinner, stronger, and more sustainable, what are some of the latest innovations coming out of Envalior’s R&D centers?

Dr. Nileshkumar: Envalior has pioneered numerous innovations originating from our R&D centers, emphasizing our commitment to cutting-edge technology. Our strategy encompasses offering a range of polymers with reduced Product Carbon Footprints (PCFs), such as Akulon® RePurposed made from recycled fishing nets, Durethan ECO grades incorporating post-industrial recycled glass fiber, and bio-based monomers in EcoPaxx and Arnitel grades.

With an extensive portfolio of advanced performance materials suitable for various applications, Envalior empowers customers worldwide to design projects to the highest technology standards, thanks to our robust design and simulation expertise. Notably, we have developed an enclosure combining PA6 and local reinforcement with Tepex organo sheets, providing exceptional resistance to battery fires in thermal runaway scenarios. Moreover, Envalior’s Stanyl® PA46 surpasses PA66 and ceramic solutions in mechanical performance while offering a cost-effective alternative to PEEK.

As one of the industry's most comprehensive material providers, Envalior serves as a one-stop shop for diverse sectors, striving to maintain a wide range of materials and harmonize overlapping product lines for optimal customer solutions. We are also committed to expanding our portfolio to support customers and adapt to industry transitions, ensuring we remain at the forefront of innovation and sustainability.

DQ: How do you integrate sustainability into its operations and product development, particularly concerning environmental impact and resource efficiency?

Dr. Nileshkumar: Envalior builds on a 100-year track record of customer-focused innovation and has a strong global footprint in Asia, Europe, and the U.S. combining the highly complementary international presences of DEM and HPM.  Envalior offers its customers a unique portfolio of leading product brands and recycled and bio-based materials, combined with deep application and materials expertise. As a leading global engineering materials solution provider, Envalior’s sustainable high-performance solutions enable the transformation of the world’s key markets, including automotive and new mobility, electronics and electrical, and consumer goods markets. Since April 2023, we are one company, and the contributions of DEM and HPM are almost equal in terms of several sites and employees.

The HPM business unit is one of the leading producers of PA6 and PBT engineering polymers and thermoplastic fiber composites. A total of 2,000 employees at 9 production and 7 research sites worldwide now work for Envalior. The global production network is characterized by a high degree of backward integration. The backbone is the Antwerp/Belgium site. There, Envalior produces not only PA6 polymers but also relevant precursors such as cyclohexanol, cyclohexanone, caprolactam, and glass fibers. The DEM business unit that became Envalior comprises polyamides (PA6, PA66) as well as various specialty materials (PA46, PA410, and specialty polyesters as well as PPS). Around 2,000 employees now work for Envalior at 9 production and 7 research sites in all relevant markets worldwide. In addition to Europe and the U.S., the business has a particularly strong presence in Asia.

Both DEM and HPM pioneered in sustainability, and as Envalior offers customers a unique portfolio of leading product brands and recycled and bio-based materials, combined with deep application and materials expertise. It is a huge opportunity to bring these strengths together. As a highly focused new industry leader where materials science and manufacturing excellence are core, Envalior will build on its strong track record of innovating at the forefront of changing market dynamics and evolving customer needs focusing on sustainability. The new company will be able to seize significant opportunities, especially around the transition to low-carbon and circular materials taking both businesses and teams to the next level.

DQ: What emerging technologies and market trends does Envalior see as pivotal for the future of the materials industry, and how is the company positioning itself in response?

Dr. Nileshkumar: Envalior is observing several emerging technologies and market trends that we believe will shape the future of the materials industry. With the growing influence of sectors such as electric vehicles (EVs) and the continuous evolution of manufacturing processes and technological advancements, the demand for high-performance and sustainable engineering materials is on a steady rise.

One of the pivotal trends we see is the integration of advanced composites. These materials are crucial for reducing weight and improving performance and fuel efficiency in various applications, particularly in the automotive industry. For instance, advanced composites are making significant contributions to the EV sector by enhancing the range and efficiency of vehicles. In the electronics sector, the advent of conductive is paving the way for a new era of flexible, wearable technology. This innovation is set to revolutionize how electronic devices are designed and used, offering unprecedented flexibility and integration into everyday items. Another notable shift is within the industry’s tiers, where there is a movement away from PBT to a PA 66 solution. This transition is driven by the need for halogen-free PBT with a higher Comparative Tracking Index (CTI), which PA 66 can provide.

At Envalior, we have a strong track record of leading sustainable innovations. Our focus is on developing carbon-efficient and circular technologies that enable sustainable solutions across the entire value chain. This includes everything from the materials used in customer applications to reducing emissions and energy consumption in our manufacturing processes worldwide. We are also committed to expanding our range of recycling-based and bio-based grades. This commitment aligns with the industry’s growing emphasis on sustainability and the circular economy.

The future of the advanced materials market is bright, with industry reports projecting it to reach US$2.1 trillion by 2025, growing at a CAGR of 4.5% from 2020 to 2025. This projection underscores the escalating importance and demand for advanced materials across various industries. Envalior is strategically positioning itself to capitalize on these trends by continually innovating and expanding our portfolio to meet the evolving needs of our customers and the market. We aim to remain at the forefront of the materials industry, driving sustainable advancements and delivering high-performance solutions.

DQ: Looking ahead, what are Envalior’s strategic goals over the next decade, particularly in terms of expanding market share?

Dr. Nileshkumar: Envalior's strategic goals over the next decade focused on expanding our market share by leveraging our extensive and diverse portfolio of engineering materials. With one of the broadest material portfolios in the industry, we aim to become the go-to supplier for a wide range of customers across various sectors. Our strategy involves maintaining this diverse mix of entry materials while harmonizing overlapping product lines to deliver the best solutions for our clients.

Additionally, we are committed to expanding our portfolio to support our customers and address the evolving needs of the industry. Sustainability remains a core pillar of our approach; we strive to ensure our customers benefit from having a sustainable, low-carbon, and highly efficient partner. This commitment will drive our growth and solidify our position as a global industry leader in engineering materials.