An increasing number of major global chemical firms are adopting a similar approach to constructing their companies: assembling a handful of diverse and established chemical and material businesses each with a high manufacturing entry barrier. Lux calls this approach the Multifortress Strategy. The high entry barrier creates the fortress-like nature of the individual businesses. The revenue of the various businesses added together creates a corporate entity of sustainable size. The multiple businesses also offer some protection from a downturn in one or a few businesses. Continue reading
3D printing has encouraged printable thermoplastic materials development and facilitated their application in functional prototyping, molds and tooling, and final part production. Only a small subset of these materials come from biological sources, making the production and disposal of 3D printed parts just as concerning for consumers and environmentally conscious businesses as in conventional manufacturing. New biopolymers currently in development for conventional manufacturing can provide interesting opportunities for expanding biopolymer use in 3D printing applications. Continue reading
On March 1, 2016, IKEA and Newlight Technologies announced that they entered into a supply, collaboration, and technology license agreement. Under the agreement, IKEA will purchase 50% of the material from Newlight’s planned 23,000 MT/yr PHA plant. In addition, IKEA secured exclusive rights in the home furnishings industry to use Newlight’s technology to convert biogas, its ﬁrst target feedstock, or later, carbon dioxide into polyhydroxyalkanoates (PHAs) for its home furnishing products. According to the release, both the companies will work together to identify and select the carbon sources and develop the technology to use a range of renewable substrates, with a long term goal to develop capacities up to 453,000 MT/yr.
IKEA’s announcement with Newlight is, in some ways, not all that surprising. IKEA established a sustainability goal that in August 2020, all plastic material used in its home furnishing products (which excludes polyurethane foams and constitutes a reported 40% of the total plastic volume used by IKEA) will be 100% renewable and/or recycled. According to the company’s 2015 sustainability report, IKEA sourced 23% of the plastics in its plastics category of products from renewable or recycled sources in FY 2015. Though the press release did mention that IKEA will license Newlight’s production technology, the company clariﬁed in a follow up that IKEA “[has] no plans to produce [its] own resins and to move up in the supply chain. [IKEA’s] approach is to have long-term cooperation with [its] suppliers for mutual beneﬁt.” Again, not a signiﬁcant deviation from the company’s typical position in the value chain or industry trends.
However, what does distinguish IKEA is the kind of product they selected: PHA. Continue reading