Revolutionary coated products tested by major furnace manufacturer

FORT SASKATCHEWAN, ALBERTA, CANADA - Westaim Surface Engineered Products (SEP) released detailed test results of its proprietary anti-coking technology - coatings that have proven to significantly reduce carbon build up in the tubes and fittings of ethylene furnaces. Ethylene is the single most important hydrocarbon today as it serves as a basic building block of compounds used in the manufacture of plastics and many other petrochemicals.

Westaim has carried out a rigorous laboratory and pilot plant testing in co-operation with The M.W. Kellogg Technology Company, a leading provider of ethylene technology, as well as commercial furnace trials with three ethylene producers over the last two years. Details of the technology and the trials were presented by Dr. Steve Petrone, Executive Vice President and COO of Westaim SEP, at the recent Ethylene Producers Conference in New Orleans.

The extensive testing demonstrated high levels of resistance to coking, carburization and hot erosion. In addition, thermal stability to 1100ºC was proven as well as an ability to withstand extreme levels of thermal shock.

Ray Orriss, Vice-President of The M.W. Kellogg Technology Company, said "In our testing, Westaim's coated products were found to significantly reduce coke build up, thereby potentially leading to more efficient and economical furnace operation."

Westaim's coatings have been shown to reduce the rate of coking or carbon build-up in ethylene furnace tubes by up to 90 per cent, leading to longer and more economical ethylene production runs. The build-up of carbon in furnace tubes is a major problem for ethylene producers because it leads to costly decoking steps, reduces efficiency of operation and increases the rate of metal corrosion and erosion. The coking problem is estimated to cost the worldwide ethylene industry more than $2 billion annually in lost production alone.

"The results of the exhaustive testing with M.W. Kellogg are an important confirmation as we proceed with the commercialization of our CoatAlloy^TM product line," said Ted Redmond, President of Westaim SEP. "We have proven to the industry that our solution works, and that it will lead to higher profitability for ethylene manufacturers."

Product Performance Improvement Versus Uncoated Steel Pipe (35% Cr, 45% Ni, 20% Fe)

Westaim recently announced it would construct a new coating application plant in Edmonton. The new plant is slated to begin production in the fall of 1998 and will have the capacity to process 10,000 meters per year of 150-millimeter diameter tubes or 30,000 meters per year of 50-millimeter diameter tubes. When fully operational, the plant capacity can service approximately 9 per cent of the North American ethylene industry.

The Technology

Westaim has developed two groups of proprietary technologies: engineered coating systems (surface alloys) that are capable of providing unique surface properties in severe operating environments, and enabling coating application methods for processing commercial products previously considered uncoatable due to their complex shape or geometry.

The Product

The first product, called CoatAlloy^TM-I, will consist of standard commercial-alloy steel tubes and fittings whose inner walls are coated using Westaim's technology. The selected tubes and fittings, which will be sourced from major producers in Japan, Europe, Canada and the United States, have an established performance record in an uncoated condition. When coated, they provide significant value-added performance to the end user. CoatAlloy^TM-I can increase the capacity of ethylene plants by 2 per cent to 8 per cent, and lead to lower unit production costs and increased profitability for ethylene producers. Westaim has completed three commercial furnace retubes in three different furnace types.

The Market

Ethylene demand is growing rapidly as products derived from ethylene are displacing conventional materials in packaging, building materials, automotive and other applications. World production of ethylene is forecast to grow from 73 million tonnes in 1996 to more than 100 million tonnes by 2005.

Ethylene producers currently consume $400 million per year of tubular products worldwide and are projected to consume $600 million per year by 2005. The market is typically 80 per cent for maintenance or retubing of existing furnaces and 20 per cent for new installations.

Other Markets

Other potential markets for Westaim's coated products and technologies include severe or critical service applications in the petrochemical, aerospace and defence industries.

The M. W. Kellogg Technology Company is a wholly owned subsidiary of The M. W. Kellogg Company, a technology-based international engineering and construction company.

Westaim Surface Engineered Products is a wholly owned subsidiary of The Westaim Corporation, a TSE 300 company.

For more information contact:
Tony Johnston
Senior Vice President, Corporate Affairs
(403) 234-3103
tjohnsto@westaim.com
website: www.westaim.com