competitiveness in polyester through

Competitiveness in polyester through technology innovation

Ian Woodcock MEng, CEng, FIChemE

इयान वुडकॉक MEng, CEng, FIChemE

Regional Licensing Manager - INVISTA Performance Technologies

Disclaimer

NOTICE: The data and material in this presentation are being provided for informational purposes only. INVISTA does not provide any

representation or warranty with respect to any such information, the standards used or applied in deriving such data and material, the

statistical significance of such data and material or the reliability, accuracy or fitness of such data and material for any purpose

whatsoever. All such data and material are the property of INVISTA and nothing herein shall be construed as authorization or license to

use, print or distribute any such data or material. INVISTA disclaims any liability whatsoever with respect to the use of any of the data

or material contained herein. Nothing in this presentation should be construed as a binding offer to provide any license, product or

service.

All trademarks used herein are the property of their respective owner

3 3 Copyright INVISTA

3 3 3

Contents

• Introduction to INVISTA

• Polyester history

• PTA technology – key advantages

• PET technology – key advantages

• Single source of competitive technology

• Recyclability

• Summary

Introduction to INVISTA


5 5 5

INVISTA Overview

• One of the world’s largest integrated producers of polymers and fibers

– Primarily nylon, spandex and polyester

• History of innovation and industry leadership

– Owns world-famous brands, including LYCRA® fiber

– Brings 75 years of expertise in nylon manufacturing


6 6 6

INVISTA Overview

• Enriching daily life: clothing, swimwear, carpet,

luggage, automobile parts, airbags and more


7 7 7

INVISTA’s shareholder

• INVISTA is an independently managed, wholly owned subsidiary of Koch Industries, Inc.

• Koch Industries, Inc. (www.kochind.com) is one of the largest privately held companies in the world with annual revenues of about $115 billion

• Koch companies: more than 100,000 employees in about 60 countries

– Businesses/industries:

• Commodity Trading

• Electronic Components

• Energy

• Fertilizers

• Forest and Consumer Products

• Glass

• Minerals

• Polymers and Fibers

• Process and Pollution Control

Equipment and Technologies

• Ranching

• Refining, Chemicals and Biofuels

http://www.kochind.com/

http://www.kochind.com/default.aspx


8 8 8

INVISTA Performance Technologies (IPT) Not just polyester…

• Licensing technology for the manufacture of:

– Polyester: PTA (purified terephthalic acid); Polyester polymer; Staple fiber; Recovery of valuable chemicals from PTA plant residue streams

– Spandex: BDO (1,4-Butanediol); THF (Tetrahydrofuran); PTMEG (polytetramethylene ether glycol)

– Nylon: Adipic acid; N2O abatement, Nylon-6,6 polymer, DBE (di-basic ester)

• Brings INVISTA’s leading technologies into new regions of the world

– More than 150 projects in 20 countries

– 7 PTA projects and 31 polyester projects in India

– > 45 MTPA annualised capacity installed

– $5 billion worth of investments being constructed or recently commissioned

– Major presence in India and China

– All 10 of the worlds’ leading polyester manufacturers employ INVISTA’s technology

Polyester History


10 10 10

Heritage – Our Company

1937 - First DuPont patents related to polyester chemistry 1950 - First commercial production of polyester 1973 - First DuPont patents for stretch blow moulded PET bottles 1982 - First plant commissioned in India

1941 - Polyester discovered by Whinfield & Dickson in Manchester, UK 1949 - First development production of polyester 1954 - Terephthalic acid production begins at Wilton 1967 - First production of PTA, Purified Terephthalic Acid at Wilton 1988 - First PTA licensed plant commissioned in India

2004 INVISTA acquired by Koch Industries

2004 onwards, the innovation continues 2007 – First 1500 tpd PET single line 2010 – First million tonne per year PTA licensed 2012 – Start-up of 2.2 million tonne PTA plant 2015 – Launch of INVISTA P8 PTA Technology

DuPont acquired ICI’s polyester business in 1998


11 11 11

75 years of polyester

2016 will mark the

75th anniversary

of polyester

We may chuckle at

the past but the

future for polyester

is bold and positive


INVISTA technology has a presence in each of the 10 largest polyester companies worldwide

Source: PCI Xylenes and Polyesters Limited.

Major Polyester Company (Ranked by 2013 polymer capacity)

Countries INVISTA Technology

PTA Polyester

Indorama (Group of Companies) US/EU/India/SE Asia

Reliance Industries Limited India/Malaysia

Jiangsu Sanfangxiang China

Zhejiang Hengyi China

DAK Americas Mexico/USA

Sinopec Yizheng Chemical Fibre Co. Ltd. China

Hengli Petrochem Co., Ltd. China

M & G Group Americas/Europe

Shenghong China

Far Eastern China/Taiwan

PTA Technology – Key Advantages


14 14 14


• INVISTA offers purified terephthalic acid (PTA)

technology with multiple attributes:–

– World leading scale – up to 2.2 MTPA capacity single plants

– Highly operable process – recent 2.2MTPA plant exceeding

100% rate in less than 24 hours

– Product quality to meet demanding end-user requirements in

textile, resin and film

– Track record in project execution – with 19 world-scale PTA

plants since 2000, with five additional plants in design and

construction

– Assistance in the design process to capture PTA – PET

colocation and integration benefits


15 15 15

0

500

1000

1500

2000

2500

1988 1992 1997 2003 2006 2012 2012

Ca

pa

cit

y (

kta

)

Year of start-up

Nameplate Operating

Scale of Operation - History

• PTA capacity versus year of start-up – in operation and construction –

unrivalled range on a scaleable technology platform


16 16 16


• The end result – 2.2 MTPA PTA plant deployment

• Recent INVISTA PTA technology deployments, from kick-off

meeting to Reactor initiation:

– PRC Deployment: 1,500,000 t/annum PTA = 28 months

– PRC Deployment: 2,200,000 t/annum PTA = 25 months

Image © Hengli Petrochem Co., Ltd.


17 17 17

PTA Technology Evolution

IPT’s upgraded PTA

technology platform, called

P8, offers variable and

capital cost even lower than

IPT’s previous licenses,

which had already given

significant advantage

compared to most

alternatives


18 18 18

PTA Technology Evolution

• Variable cost:-

– Significant variable cost improvements through optimised reactor

conditions, improved energy integration and optimized energy

recovery

– Net electricity export, with a reduced environmental footprint

resulting from low energy and water usage and reduced waste

generation

– Greater than $20/te variable cost improvement compared to plants

licensed just a few years ago - could be up to $40/te advantage

over competitors’ technology


19 19 19

0%

20%

40%

60%

80%

100%

2005 2010 2013 2015

HP Steam Usage (t/t)

Industry Leading Environmental Performance

0%

20%

40%

60%

80%

100%

2005 2010 2013 2015

DM Water Usage (t/t)

0%

20%

40%

60%

80%

100%

2005 2010 2013 2015

Liquid Effluent (t/t)

-500%

-400%

-300%

-200%

-100%

0%

100%

2005 2010 2013 2015

ISBL Electricity (kWh/t)

PTA ISBL is a net exporter, meeting PTA OSBL requirements. Power export from PTA Plant under normal operating conditions.


Reduced Footprint

0%

20%

40%

60%

80%

100%

2005 2010 2013 2015

Rela

tive P

lot

Are

a

Note: Reduced footprint drives down land usage and cost of concrete, steelwork, piping and cabling Shorter piping long term savings on pumping costs

Major Reductions in Footprint achieved through:

Design Simplification Layout Optimisation Value Engineering


Improvement in Capital Productivity

0%

20%

40%

60%

80%

100%

2005 2010 2013 2015

Rela

tive C

apital Cost

($/a

nnual to

nne) Major Reductions in Capital Cost

achieved through: Footprint Reduction

Flow sheet Simplification Value Engineering

Low Cost Equipment Supply

Note: New technology achieves substantial improvement in VC performance for similar capital productivity

PET Technology – Key Advantages


INVISTA CP licensing history

Textile PET Resin

Number of lines 85 34

Capacity – annual tonnes 9.85 million 8.75 million

Image © INVISTA


24 24 24

Low PET Operating Costs Energy Consumption and Raw Materials

• Energy Consumption:-

• Considerable improvements in last five years for both fibre CP and resin CP-SSP applications

• CP - Current offers include demonstrated upgrades (patent applications pending) which result in improved CP energy – see next slide

• SSP – Polymetrix (formerly Bühler) has introduced a patented process for direct crystallization and SSP – EcoSphere™ - which, when coupled with INVISTA PET CP technology, further reduces energy consumption

• Raw Materials:-

• INVISTA/Chemtex/Polymetrix make a combined offer to provide guarantees we believe are equivalent to all other processes, and very close to the chemical stoichiometric minimum for all technologies


25 25 25

Scale of Operation - History

• Single Stream PET capacity versus year of technology sale – in operation and

construction – unrivalled range on a scaleable technology platform

0

200

400

600

800

1,000

1976 1979 1986 1995 1997 1999 2003 2004 2006 2008 2010 2014

Ca

pa

cit

y (

ktp

a)


26 26 26

Scale of Operation - leading single line scale

1,500

tpd

In PET resin….

Nearing 900 tpd

In PET fibre ….

Images © Chemtex International


27 27 27

Operable and Flexible Process

• INVISTA CP plants, engineered by Chemtex, are easy to operate:-

• Easy start-up:-

– Last 3 fibre CP start-ups (total annual capacity > 900 ktpa) have resulted in less than 500 kg of waste

– First grade production was achieved within minutes

• Low maintenance:-

– Three vessel polymerisation, few rotating parts – low maintenance

• Long run time without shutdown:-

– Plants have operated for 10 - 15 years without shutdowns for quality

– Equipment is designed for long term mechanical integrity and reliability for long term operation – plant operations demonstrated for well over 30 years without major mechanical disruptions

• Easy to debottleneck – our CP plants can typically be debottlenecked in stages by up to 50% or more, allowing a client to grow cost effectively with the market

INVISTA – Single Source for PTA & PET Know-How


29 29 29

PTA–PET Integration Opportunities

• As a supplier of both PTA and PET technology, INVISTA believes it can bring additional value to a client’s project through technology integration by:

– Layout improvements

– Reduced capital expenditure through

• Simplified product handling arrangements to minimise conveying systems and PTA storage

• Sharing of utilities

– Variable Cost savings


30 30 30

Leading Supplier of PTA & PET Know-How

INVISTA, as the only single source supplier of PTA and PET know-how brings unique benefits to a Project:

– Single License & Performance Guarantees across both technologies,

– Seamless interface between technologies,

– Training , Commissioning and Plant Start-up support

– Post Plant-Acceptance Technical Support for optimisation and operations management

– PTA & PET experienced knowledge pool located in a single organisation that can be utilised to respond to operational / process queries from the client.

PX PET CP/SSP PTA


Recyclability


32 32 32

Innovative recycling

Summary


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Summary - what INVISTA offers

• PTA

– The most licensed PTA technology in the world, with a new low operating cost platform, capable of being co-located and integrated with our own PET technology

– Capacities ranging from 375 ktpa to well over 2 million tpa

• PET

– Competitive PET variable costs, delivered by constant innovation in esterification, melt polymerisation, direct crystallization and solid-state polymerisation technologies

– Unrivalled range of PET plant scale, facilitating integration with upstream PTA technologies, allowing single plants delivered at scales over the 75 to 3,000 tpd range in the last 10 years


35 35 35

Summary - what INVISTA offers

• Products

– Capability to manufacture a wide range of PET products which have gained widespread process and/or brand owner acceptance, with rapid transitions between grades

• Projects

– Efficient project solutions delivered by experienced technology licensors and engineering companies

• The result

– Significant value generation for our clients, as evidenced by the strong market position of our key customers who routinely return to us for their next expansion

Thank you

Ian T Woodcock MEng, CEng, FIChemE

Regional Licensing Manager, INVISTA Performance Technologies

Telephone: +44 1642 572362

E-mail: [email protected]

www.IPT.INVISTA.com

competitiveness in polyester through

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