SALES EXPANSION OPPORTUNITIES FOR TWO SHOT AND

INSERT MOLDED COMPONENTS

PRESENTED TO METRO PLASTICS

GLS Mission

• GLS Corporation will be known in our industry

as the leader in the development and supply of

soft thermoplastic elastomers.

– We make our products work for our customers

by helping them take their ideas and turn them

into commercial realities.

– We respond to customers’ needs by developing

individualized custom TPEs to meet specific

aesthetic and performance requirements.

– We are committed to continuously improving our

services, our technology, and the quality and

consistency of our products.

GLSThermoplastic Elastomers

• Leading TPE Technology Company

• TPE business for over 25 years

• Headquarters in McHenry, Illinois

– Manufacturing

– Warehousing

– Management

• European sales office in the Netherlands

• Asia Pacific sales office in Hong Kong

– Chinese plant start-up in Dec 2005 in

Suzhou

GLS’ VALUE BASIS - THE LEADER IN TPE COMPOUNDS

Broadest TPE product line to serve host of multiple

material applications

Insert/two shot molded applications have been a major

focused area of success over the past decade

Complete integrity and teamwork in our business/

technical interactions with our customers

Continuously strong R&D commitment to maintain the

leading edge in TPE compound solutions

Specialize in highly targeted new OEM components

Very strong record of continuous growth based on new

OEM component successes

MARKETS SERVED BY GLS Appliances

Food packaging

Furniture

Hand and power tools

Medical devices

Sports and leisure

Housewares

Infant care

Lawn and garden

Safety equipment

Toys

Computers

Personal electronics

Telecommunications

Personal care

Automotive

• Housewares/Appliances– Kitchen Appliances & Utensils, Overmolded Grips &

Gaskets, Office Products, Buttons, Knobs, Cups, Feet, Storage Devices, Non-slip Surfaces

• Electronics– Hand-held Personal Assistants and Computers,

Business Machines, Printers, Calculators, Pagers, Telecommunications

• Infant Care– PVC & Latex Replacement, Toys, Pacifiers, Baby

Bottle Nipples, Dinnerware, Utensils, Suction Cups, Sipper Cups, Beverage Container Valves

Example Applications

Example Applications (Continued)

• Tools

– Lawn & Garden Grips & Handles, Power Tool

Grips, Hardware Handles & Grips

• Personal Care

– Toothbrushes, Razors, Hair Brushes,

Glasses, Pen Grips & Components

• Medical/FDA

– PVC & Latex Rubber Replacement, Dropper

Bulbs, Syringe Stoppers, Tourniquets,

Tubing, Surgical Draping, Respiratory Bulbs

Soft, high performance Clear, high performance Adhesion to polar substrates Ergonomic design to delight consumers Individualized custom aesthetics

Colors & color effects Custom feels Custom scents

More functional uses of TPEs Incorporate logo with plastics “PVC Free” & “Latex Free” alternatives – safety

perception

Consumer Trends

TYPES OF O/M OPPORTUNITIES FOR COLLABORATION WITH GLS

1. Your market segments that are currently

served with single shot components

2. O/M market segments where GLS has been

successful

3. O/M market segments where both you and

GLS have been successful

4. New proprietary O/M goods that could

potentially be branded

5. New applications at targeted OEMs which

can be determined through “joint

brainstorming”

? YOUR NEEDS/DESIRES ? We will meet >90% of your TPE applications needs

Business expansion in current sales segments

Business expansion in truly new areas

Business expansion in new proprietary finished products

Gages of Success1. Execution in duplicating past successes2. Opportunity to patent new proprietary goods3. Opportunity to differentiate vs. your custom molder competitors

with unique material combinations

GLS Capabilities

HIGH COST

LOW COST

LOW PERFORMANCE HIGH PERFORMANCE

mPE

SBC

TPV

TPU

COPE

Hardness

Temp Range

Tensile Str

Elongation

Shore OO 95 A

250F

>3000psi

>800%

-40F

<200%

SEBSM-PE

TPVTPUCOPE

GLS Capabilities

45 55 65 75 85

0 10 20 30 40 50 60 70 80 90 95 50 70 90 110 120 130 140 150

Shore A Durometer Shore D Durometer Rockwell - R Hardness

GLS TPU, TPV, SBC Alloys

ELASTOMERS

THERMOPLASTICS

FLEXIBLE PVC RIGID PVC

NYLON

POLYPROPYLENE

NITRILE RUBBER

TPU

SBC

COPE

TPV

ACETAL

PC

ABS

Hardness Capability Comparison

Some GLS Specialty Overmolding Capability With:

• Polypropylene

• Polyethylene

• Polystyrene, HIPS

• Polycarbonate, PC/ABS, ABS

• Noryl® PPO

• PC/PETG, PET

• Nylon

• Propionate

• Co-Polyester (COPE)

• PMMA

• ASA

• SAN

Clear/Translucent

BarrierHigh Heat

Low Extractables

Specialty TPEs

NEW AESTHETICS• Ultra-Clear• Neon/Fluorescent• Clear Tints• Thermo-chromatic• Metallic Look• Pearlessance

FEEL ORIENTED• Ultra-Soft (30 OO)• PVC or Latex Feel• Silky Feel• Skin Feel

EXPANDED PERFORMANCE RANGE• Low Extractables• High Strength • High Heat• Dishwasher/Boiling Resistant• Chemical & Stain Resistant• Barrier

REGULATORY PRODUCTS• FDA (CFR) or European Union (EU)• Medical (USP)• National Sanitary Foundation (NSF) • UL Approved Flame Retardant (UL)

EXAMPLES OF NEW O/M AND 2-SHOT MOLDED OPPORTUNITES

Internal valve components: Butterfly

Gate

Check

Pipe seals (in PVC pipe systems) >600 million components annually

Replacing SBR rubber over steel

ring

Fluid Delivery Food Closure/Sealing:

Caps

Lids

Hermetic seals

Recreation/Sporting Goods Watercraft components

Exercise equipment

Water and snow ski grips/systems

Bicycle grips

HOW GLS CAN ASSIST YOU

Meet broad variety (>90%)of all overmold application needs

Target successful new component programs with OEMs

Applications assistance in O/M component Design Processing Appearance optimization

Where needed – develop new TPE solutions for major O/M applications.

This is how we developed the broadest global TPE product line.

WHY WE BELIEVE THIS COLLABORATIVE APPROACH WITH NEW OPPORTUNITIES OFFERS

REAL VALUE Effective targeting of OEMs:

Current applications

New components

Proprietary applications

Potential for branded components

Use your O/M expertise combined with GLS’ TPE technology

and experience

We see the opportunity to expand the O/M expertise to new

OEMs who require new types of product differentiation

APPENDIX – TECHNICAL ISSUES

ADVANTAGES/DISADVANTAGES OF OVERMOLDING PROCESS

Hand Loaded Insert Injection

ADVANTAGES DISADVANTAGES

Appropriate in low volume (< 25K parts)

Generally means lowest total tooling cost investment

Cycle time extension:Load/unload 2 to 3x vs. two shot

Difficult to maintain highest component quality

More variables to address

Not well suited to higher downstream component volume requirements

                               

MOLDING PROCESS LIKELY SCENARIO WHERE USED

Hand Loaded: - Low annual volume of finished components - Bond quality may not be critical application requirement

Robotically Assisted: - Higher annual volume - Accurate placement of substrate in overmold tool is critical - Is commonly used to assist in horizontal presses

Vertical Molding: - Commonly used in electrical connectors - Allows for reduced tooling complexity - Provides for ease of cavity change in related OEM product line (s) - Fairly easy to automate – with shuttle table or rotary table options

INSERT INJECTION MOLDING PROCESSES-

Three Options to Consider

ADVANTAGES/DISADVANTAGES OF

OVERMOLDING PROCESSES

Robotically Assisted Injection

Higher bond strength(s) vs. hand loaded process

Hotter substrate/less shrinkage factor

Lower labor content results in lower component price

Reduced cycle time & labor hours vs. hand loaded approach

ADVANTAGES DISADVANTAGES

Requires shop with robotics (pick’n’place) expertise

Requires component substrate geometry which can be “grabbed”

Accurate placement in second tool critical

TWO SHOT INJECTION MOLDING OVERVIEWADVANTAGES LIMITATIONS/DISADVANTAGES High molding productivity

Well established technologies– Van Dorn DeMag options

Lower component cost in high volume applications

Slightly enhances substrate/TPE bond strength due to higher substrate surface temperature and no substrate shrinkage vairation

Easy to incorporate OEM markings/logo into finished component

Automatic de-gating of finished components

– Both the plastic and TPE shots

Component design must be specific for 2 shot process

Technical tooling complexity higher than insert molding

Significantly higher (1.8 to 2.5x) tooling cost vs. insert molding

Growing number of experienced U.S.& Asian processors

Must assess economics and capital tradeoff carefully

RECOMMENDED PRACTICES FOR SUCCESSFUL

TPE INJECTION OVERMOLDING

Incorporate the higher TPE shrinkage rate properly with TPE injection tool

Venting is critical – air must escape from the cavity to fully pack TPE into tool

Use melt velocity, first and second stage molding pressure to fully insure proper TPE usage – Slightly improves resultant bond strength

Incorporate into the TPE overmold:– Proper gate size/location– Vent location(s)– Maximum flow length (L/T)– Proper surface texture– Applicable de-gating/part ejection – Proper shut off technique(s)