Current Status and Future Potential for Polyolefins, Tpos, And Tpes in the Global Automotive Market

8/11/2019 Current Status and Future Potential for Polyolefins, Tpos, And Tpes in the Global Automotive Market

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3

G 1975

2.4 3.6%/ . C N . 1, , .


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GLOBAL VEHICLE DEMAND SHIFT BY REGION

4


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REGION PRODUCTION,MM VEHICLES

CAGR%/YR.

NOTE

2000 2015

China 2.5 22 16% - Reduced govt. incentives willslow growth in 2012

- Recent barriers to non-ChineseOEM investment

-

REGIONAL VEHICLE PROD N. GROWTH RATES 2000/2015

India 1.0 5 11%

S. America 2.5 5 5% - Brazil dominates

Europe 19.0 23 1% - Current overcapacity

- Stagnant marketJapan/Korea 12.5 13 0% - Yen strength Japan shift to

non-domestic production

NAFTA 17.0 17 0% - 13.8MM in 2012

SOURCE: ROBERT ELLER ASSOCIATES LLC, 20125


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OEM CURRENT/FUTUREEXAMPLES

GLOBAL PLATFORM STRATEGY NOTE

VW - Passat - Has been in place for 30-40 years(e.g., Golf platform)

- Shifting from global platforms?- U.S. Passat is departure fromglobal platform strategy

- Borrows components andmodules from other models,as appropriate

- Strong VW entry intoEuropean A vehiclesegment

Honda - Civic- Accord

- Shifting from strict adherence tolobal latforms

- Flexible assembly lines allowmulti le models/re ional

GLOBAL PLATFORM STRATEG SHIFTS

- Acura

differentiationGM - Cruze

- Malibu- Reduce number of vehicle

platforms (30 in 2010 14 in2018)

- Increase vehicles per core globalplatform

- Cruze is first global model- Malibu to follow- Core platforms 90% of

production in 2018- Have been slower to global

platformsFord - Fiesta

- Focus- CUVs- C/D platform

(Fusion/Edge)

- One Ford strategy- Single Focus model for

U.S./Europe

- Move to global platforms- Reducing number of global

platforms from 11 9 by2013

SOURCE: ROBERT ELLER ASSOCIATES LLC, 2012 7


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/ / E 2011/C C 064. 1 .

P S : GM C .

2011 C C E

8


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1. GLOBAL AUTOMOTIVE MARKET:REGIONAL SHIFTS GLOBAL PLATFORMS

T : 3%/ .

BRIC : . W G : :

P : F , GM , VW

P 40% 2015, 34% 2010

G / :

S : , . ., 3 4 TPE A : TPE

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2. ASIA PACIFIC ROLE IN THE GLOBAL AUTO MARKET

C E : 8.5% 2011; I : 5% 2011 E : 2011

40MM 2020, ?

GM VW: ( = 27%) C >2012?

XD/S )

A A , W W TPE :

C L I S ( ) R G (I ) S (F ) TSRC D (SBS ) T B (J ) P

M S (I ) P (G )10


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AUTOMOTIVE PP COPOL MER AND TPO INDUSTR STRUCTURE

INDUSTR SECTOR SHARE,%

EXAMPLES COVERAGE

RESIN SUPPLIER/

CAPTIVE COMPOUNDER

70 L B

M /PE MS , S

M , S

GLOBAL

11

INDEPENDENTCOMPOUNDER

30 RF

W P

REGIONAL

INDUSTR STRUCTURE TRENDS

R T 1 (IAC, I ) M / O N. A ( ?) W OEM , T 1 A ( )


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AUTO POL OLEFIN SHARES: NAFTA

PP FORM SHARE,%

EST. 2011DEMAND,MM LBS.

NOTE

N F /

47 565 I ()

TPO 53 635 TPO (

)

13

T 100 1,200

PP (% / 2000 2011):

2000: 7.6% 2010: 9.6%

U 5 :

S ,

I LGF PP,

: E A C ; C


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SOME AUTO PP COMPOUND/TPO APPLICATIONS ARE MATURE

B ( / ) I ( ?, , )

E ( , , )

S

F

14


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EXAMPLE GROWTH APPLICATIONS FOR AUTO PP COMPOUNDS

APPLICATIONS COMP D. DEMAND TREND

I /O

SGF PPPP

C SGFS VW (B )WIT 3 D

IP LGF PP S U LGF PP C , SGF PP

D LGF PP H

15

E SGF PP S F K (E )V ;

T T PP

B S ( . .

B / T PP R . O TPE

N : LGF PP SGF PP SGF ( LGF) SOURCE: ROBERT ELLER ASSOCIATES LLC, 2012


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EXAMPLE OF PP S STEMS COST SAVE VIA INTEGRATION OF FUNCTIONS

16SOURCE: ROBERT ELLER ASSOCIATES LLC, 2012

P :D ( / )M : ( C 03 E A. )F : ( )E :E F P : ( ), F , FN : C C : D , 1.4

(A , )

: , . ,


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5. THE TPE FAMILIES

TPE FAMILIES

OLEFINIC (o-TPEs) STYRENIC (SBCs) SUPER-TPVs PVCTPEsOTHERE-TPEs

NON-TPO TPEs COMPETINGIN THE AUTO TPE SECTOR

o-TPV SEBS(TPE-S)

VULCANIZEDSBC TPVs(TPES-V)

SILICONE

ACRYLATES

OTHER

COPE

COPA

TPUp-TPV(PARTIAL CROSSLINKED)

f-TPV(FULLY CROSSLINKED)


TPO

r/mydox/visio/TPE Fam Challenge to Rubber 2011 12pt.vsd // lg/myfiles/visio/TPE FamChallenge to Rubber 2011 12pt.vsd

OTHERS(a)

SBS

Note:(a) e.g., recently introduced melt processable polyurea-based TPEs


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6. AUTOMOTIVE TPE SUBSTITUTION: KE DRIVERS

C . R / ( )

N : /

L ( CUV )

S ( )

F :

E , , (BSR)

R /S E ( . ., PP/K )

S /

C TPE .

D /

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7. AUTOMOTIVE TPE TARGET APPLICATIONS, 2012

TARGETCOMPONENTS

TPE TYPEHIGH

STIFFNESSTPOs

LOWSTIFFNESS

TPOs

SEBS r-TPOs o-TPV COPE s-TPV

Exterior:

Panel XRocker Panel X X

Fascia X X*

Body/Glazing Seals X X X

Interior:Airbag Door X* X* X* X* X* X

Trim X

IP Skins X* X?* X*

Door trim skins X X* X*

Steering Wheel X

HVAC Louvers X*

Under-carpet flooracoustic mat

X

X* = , ,

(C .) 20


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AUTOMOTIVE TPE TARGET APPLICATIONS, 2012(C .)

TARGETCOMPONENTS

TPO or TPE TYPE

HIGHSTIFFNESS

TPOs

LOWSTIFFNESS

TPOs

SEBS r-TPOs o-TPV COPE s-TPV

Under-hood:

Cowl Vent Seal X* X* X*

Ducting X* X?

Hose X*

Wiring X X X X

Oil/Gas Resistant X X

Underbody shields X

X* = , ,

21SOURCE: ROBERT ELLER ASSOCIATES LLC, 2012


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APPROACHES TO 2 SHOT OR OVERMOLDING OF TPEFOR AUTOPLASTIC COMPONENTS

TPE

Substrate

(rigid segment)

TPE Rigid Segment

TYPE STRUCTURE NOTE/EXAMPLE APPLICATION

Overmold,Multi-material

Mold,

2-shot Mold

Side by Side

- Soft touch interiors- Small, tactile parts- Some 2-tone applications

- 2-tone- Door trim, console, IP- Bumper fascia

SOURCE: ROBERT ELLER ASSOCIATES LLC, 2012/ / / E A 2011. // / / / E A 2011.

Edging

Co-blow Mold

- Body/glazing seals (profiles)- Cowl vent seals- Co-extrusion or 2-shot

- Boots/bellows- Under-hood

. .

. .

.

. .

.

.

.

.

.. .

. .

. .

. .

.

.

. .

TPE (flexible) Rigid

Co-extrusionBlow Mold orCo-extrusion

TPE outerETP inner

Under-hood:- Hose- Duct

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AUTOMOTIVE TPE TARGET ONES

Oil seals

DuctingAcoustic barrier

role for POEs

Skins: IP, door trim

Glazing seals(static, dynamic)

Body seals

Exterior skins

Lighting seals

SOURCE: ROBERT ELLER ASSOCIATES LLC, 2012r/mydox/Visio/TPE Battle Zones 2012.vsd // lg/myfiles/Visio/TPE Battle Zones 2012.vsd

Cowl ventgasket

Dust covers(bellows)

Glass runchannels

Belt linemolding

Lightingseals

Acousticmats Under-carpet acoustic mats

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AUTO TPE TARGET MARKETS: INTERIOR SKINS

T : I , , , M (2 ) :

C . TPV SBC TPE F TPE

C . ( A ) TPE ( / ) C R

L IP 2 TPE / 2 R BSR G

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INSTRUMENT PANEL SKIN SUBSTITUTION OBJECTIVES

E E ? I / R VOC/

P S /M ( TPO) S 30 C H ( ) C / & ( ) M L UV ( E)

H C R IP (2 ; ?) S

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IP SKIN PROCESS SHARES IN N. AMERICA

PROCESS SHARE,%

MATERIAL TYPE NOTE

HARD/SOFT IP BREAKDOWN

SOFT IP MATERIALS SHARES

IP TYPE % NOTE

Hard 60 Primarily PP-based

Soft 40 See process shares below

us casmolding

- om na es a ou- TPU at Japanese OEMs- TPO has not made significant

penetration

- - aseslush seekingentry

- Inteva patent

Thermoform 15 - TPO compact and foam backeddominate

- Still some PVC/ABS

PU spray 10 - Expensive- Primarily on high end models

Leather, other 3 - High end models - Hand wrap



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INTERIOR SOFT TRIM/SOFT TOUCH MATERIALS/PROCESSES

INJECTION

CONV. INJECTION

SOFT TOUCH PAINT

OVERMOLD

-- SEBS-- TPV-- TPU

2-SHOT

SKIN PROCESSES

BACK INJECTION

-- COATED FABRIC-- FOILS-- UNCOATED FABRICS

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r/mydox/Visio/Interior Soft Tri m n Touch Compet 2012.vsd // l g/myfiles/Visio/Interior Soft Trim n Touch Compet 2012.vsdSOURCE: ROBERT ELLER ASSOCIATES LLC, 2012

-- TPU-- TPU-- BLENDS-- PVC(a)-- TPO-- SEBS (TPE-S)

SLUSH MOLD (CAST)

BACK INJECTION ORLOW PRESSURE

MOLDING

NOTE: (a) Polyurethane dispersion (PUD) coated fabrics gaining share

THERMOFORM

COATED FABRICS(a)VAC FORM FOILS

-- TPO-- PVC-- TPU ALLOY SHEET

HAND WRAP(a)OR VAC FORM

BACKINJECTION


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AUTO INTERIOR: COST/VALUE ADD CURVE MATERIAL/PROCESS COMBINATIONS

T F : T TPO PVC

S M : PVC

S M : TPU TPE S

L PUD/

H W

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C O S T

S I : T PP , TPO F ( ) PP

2 : I , ( ) I

K , ,

C M : T ( ) ( )

N : ( ) F ( ) D

INCREASING VALUE ( , , )

( ) TPE SOURCE: ROBERT ELLER ASSOCIATES LLC, 2012


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COMPARISON OF SLUSH/SPRA IP SKIN CAPABILITIES

PROPERTY SLUSH TYPE SPRAY PU NOTE

PVC TPE (TPE-S) TPU

Raw material cost,$/lb.

Lowest Moderate Highest -- Inteva patent onTPE-S

Typical skinweight, lbs.

3 3.5 1.6 2.0 2 2.5

Low temp. airbagdeployment(heat aging effect)

Some degrada-tion after heat

aging

No deploymentperformance

loss

-- --

E after UVexposure (2500 kJ,89C)

Highest Very low(< 1)

Very low(< 1)

Moderate OEMs require E = < 3

Shrinkage on heataging

Moderatecurling

Remains flat(no curling)

Minorcurling

-- Shrinkageincreasesvisibility ofairbag tear seam

VOC Medium Lowest High High

Fog Acceptable Acceptable High Acceptable Acceptable =~ 125 g/gram

Process window Narrow Wide -- --



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AUTO TPE TARGET APPLICATIONS: BOD /GLA ING SEALS

I : PVC, EPDM, ( ), PU

TPE : TPV, SEBS ( TPE TPE S), SEBS V (TPES V)

T 1

TPE

H

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BOD /GLA ING SEALS MAJOR TPE TARGETS

Trunk seal

Rear light seal

Sun roof seal

Cowl vent seal(TPE seal reduces BSR

between glass/plastic)

Hood seal

Fixed glazingWindshield (difficult target, but TPE substitution starting)

Photo Source: Toyoda Gosei

Mirror gasket

Belt line sealDoor seal

Glass run channel

Lighting sealDoor sill plate

Wheel arch seal

Engine shield (recyclate?)

r/mydox/Visio/Toyoda Gosei NA Seal Syst Pic 2011.vsd // lg/ myfiles/Visio/Toyoda Gosei NA Seal Syst Pic 2011.vsd32

O /G A G S A S A O A G


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BOD /GLA ING SEALS MAJOR TPE TARGET

EPDM S /S T SEPDM D S

P S : REA LLC, 2012 P S : REA LLC, 2012

F TPV . R S A (25 EPDM TPV .



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AUTO INDUSTR CONSOLIDATION EFFECTS


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E ( / ) T 1

I T 1 ,

D ( ) OEM

AUTO INDUSTR CONSOLIDATION EFFECTS

P

S T 1 ( ) ( TPV / )

E : C S S (E ) F P (G , S , F ), P O P P ,

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SUMMAR


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SUMMAR

T G 3 3.2%/ .G C , BRI , ( N. AG ( 40% . 2015): G TPE G TPE S /

I ( , T 1 ) W OEM/T 1 C ( ?) C C 2020? I S /

D : S S V S

TPO / 37

SUMMAR (C )


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SUMMAR (C .)

S :R / PP, TPO

I / TPE

B 1

M :H TPE (COPE . TPV)

SEBS TPV

SEBS . TPU ( PVC) ( ?)

B TPE

PP ( );

TPE PP

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Documents

Current Status and Future Potential for Polyolefins, Tpos, And Tpes in the Global Automotive Market