SABIC in Europe

1

The power to provideThe power to provide PP Innovation from a different

perspective

Gert Coun

SABIC EuroPetrochemicals

Zurich 17 - 09 - 2003

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SABIC in Europe

Contents

Basic Facts SABIC

PP Industry trends leading to

A new type of PP Innovation

Decreasing number of PP grades

Development of multi-functional PP grades

3 Examples of multi-functional PP grades: Block Copolymers for Injection Moulding Homopolymers for Film A new block Copolymer for sewage pipe

Conclusions

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SABIC in Europe

SABIC: Saudi Arabian Basic Industries Corporation Started from scratch in 1976, produced first tons in 1983

Produced 40 million tons in 2002: 2 mln tons of additional product per year

Turn-over of € 11,4 bln in 2002

Is 70% owned by Saudi government and 30% by private sector

100% owner of SABIC EuroPetrochemicals

Basic Chemicals Intermediates Polymers Fertilizers Metals

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SABIC in Europe

0

2000

4000

6000

8000

10000

Basell

Dow ExxonM SABIC BP/Solvay Borealis Atofina Equistar Phillips/

Chevron

Formosa

Plastics

PPPE

Kton

SABIC is number 4 global polyolefin player

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SABIC in Europe

Trends in PP Industry

Historically, PP Innovation focussed on catalyst and technology developments

These “technological” developments are matched quicker in increasing competitive PP environment.

PP Producers: Forced to be cost driven and to optimise operating efficiency:

Increase of minimum production run length

Less flexibility to produce ‘specialties’

“Special” products become quicker and quicker commodities.

Many interchangeable PP grades available.

Differentiation possibilities based on PP grade performance are decreasing

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SABIC in Europe

A new type of PP innovation…

Catalyst & technology developments are not anymore THE “differentiators” in PP business.

Future PP Innovation will focus also new logistical concepts, organisational flexibility, internet development…

One specific new type of PP innovation concentrates on a multi-functional PP product portfolio:

Higher market coverage with less grades

Multi-functionality in mono and multi applications

Excellent grade “processability” and “consistency”

“Stable” portfolio for customers

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SABIC in Europe

The type of PP innovation changes…

80’s 90’s 2000-2010

Catalyst &Technology

Developments

Product Processabilityand Consistency

Multi-Functional Grades for Decomplexation

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SABIC in Europe

Decreasing number of W.European COPOL PP grades

0

200

1997 1999 2001 2003

nr

of

CO

PO

L PP g

rades

SABIC EPC Comp 1 Comp 2 Comp 3

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SABIC in Europe

Decreasing number of W.European HOPOL PP grades

0

300

1997 1999 2001 2003

nr

of

HO

PO

L PP g

rades

SABIC EPC Comp 1 Comp 2 Comp 3

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SABIC in Europe

The multi-functional BLOCK COPOL grade for injection moulding should offer:

Stiffness/Impact Balance Low Blushing

Good surface appearance

Dimensional Stability

High Flow & Fast crystallisation:

Short cycle timesConsistency

Good Organoleptics

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SABIC in Europe

DimensionalStability

Organoleptic

Melt flow

Rubber

conte

nt

Impact/stiffnessBalance

Cycle time

SABIC EPCBlock Copol Grades

The Development of Multi-Functional Block-Copol grades for Injection Moulding

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SABIC in Europe

STAMYLAN P 412MN40

Multi-functional Block Copolymers (1)

Impact/stiffnessBalance

DimensionalStability

Cycle time

Organoleptic

Surface Appearance

Tamper evidence

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SABIC in Europe

STAMYLAN P PHC31

Multi-functional Block Copolymers (2)

Dimensional stability

Impact

Cycle time

Surface Appearance

Impact/stiffnessBalance

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SABIC in Europe

The multi-functional BOPP HOPOL grade should offer:

High BOPP line speedsExcellent thickness profile

High clarity/gloss

Good metallisation

Good stiffness & barrier film propertiesConsistency

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SABIC in Europe

The development of multi-functional BOPP film grades for BOPP stenter process

Optical

Mechanical / barrier

Stretching

Decreasing tacticity

Bro

ader

mw

d Metallisation

SABIC EPCBoppGrades

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SABIC in Europe

Waste water discharge pipe

Public sewage pipes

Multi-functionality in a “mono-application”: The Develop-ment of a multi-functional Block Copol for Sewage pipes

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SABIC in Europe

Improving the impact /stiffness balance during the development a Block Copol for Sewage pipes

1

10

100

500 700 900 1100 1300 1500 1700 1900 2100 2300E-modulus [MPa]

Stamylan P 71EK71PS

HOPOL

Notc

hed Izo

d [

kJ/m

²]

Block CopolRandom

Copol

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SABIC in Europe

STAMYLAN P 71EK71PS

A Multi-functional Block Copolymer for sewage pipe

Stiffness

Impact atLow temperature

Processability- ”Ribbed” pipes

Falling weight Impact

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SABIC in Europe

Conclusions

PP Industry trends lead to a new type of PP innovation.

One new type of PP innovation targets a multi-functional product portfolio leading to:

Reduction of number of PP grades

Ultimate level of product processability & consistency

Increase of “multi-application” use

Decomplexation at PP producers and convertors (lower costs)

“Stable” grade portfolio for customers