Sustainable Packaging Innovation: Delivering Sustainable Solutions Across the Value ChainBob Maughon
R&D Vice President, Packaging & Specialty Plastics and Hydrocarbons
The Dow Chemical Company
Capitalizing on innovation: A growth imperative
Industrial Intermediates & Infrastructure
Performance Materials & Coatings
Packaging & Specialty Plastics
2016 Net Sales: ~$40B
>20% Op. EBITDA Margin*TECHNOLOGY
PLATFORMS
WORLD-CLASS
CAPABILITIES~$20BNet Sales
>25%Op. EBITDA
MARGIN
~$11BNet Sales
>15%Op. EBITDA
MARGIN
~$8BNet Sales
~15%Op. EBITDA
MARGIN
*Includes silicones net sales and EBITDA for FY16. Operating EBITDA is defined as income from continuing operations, net of tax excluding depreciation and amortization, interest
income, interest expense and amortization of debt discount, taxes, and significant items
• Polyolefins
• Elastomers
• Polyurethanes
• Silicones
• Acrylics
• Ethylene oxide derivatives
• Propylene oxide derivatives
• Cellulosics
• High-throughput R&D
• Catalyst discovery
• Polymer science
• Formulation expertise
• Process engineering
• High-performance computer
modeling
• Application development
Future Dow – Operating Segments
Capitalizing on innovation: A growth imperative
Where Is Food Lost? The Role of Packaging in Addressing the Challenge
38%
0
37%
0
7%
0
13%
0
5%
00%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Waste Breakdown by Stages of Value ChainConsumption
Distribution
Processing
Handling & Storage
Production
50% of food loss can be
reduced by better packaging
Food Waste costs ~$750
Billion annually
Capitalizing on innovation: A growth imperative
Packaging Delivers Significant Impacton Shelf Life and Reducing Food Waste
W H O L E C H I C K E N
20 ► 40 Days
B R O C O L I F L O R E T
20 ► 40 Days
7 ► 70 Days
G R AP E S
Capitalizing on innovation: A growth imperative
Recycling Many Plastics Is Challenging
InfrastructureTechnical Consumer Behavior
Success will require focus on all three pillars
Capitalizing on innovation: A growth imperative
Plastics Are Under Attack
Proposals for Plastic Bag Bans are
Becoming More Wide Spread…
Pressure is Increasing Globally for
Transparency & Disclosure
Capitalizing on innovation: A growth imperative
Delivering on the Positive Value of Flexible Plastic Packaging
REDEFINE THE FUTURE OF PACKAGING
SOLUTIONS
TO REDUCE
FOOD WASTE
REDUCTIONS IN
ENERGY
CONSUMPTION
DESIGN TOOLS
FOR SUSTAINABLE
PACKAGING
COLLABORATIONS
THAT REDEFINE
THE FUTURE OF
PACKAGING
ADVANCEMENTS
IN END OF LIFE
OPTIONS
3
RECOVER THE
VALUE FROM
WASTE
2
INCREASE
RECYCLABILITY
OF FLEXIBLE
PACKAGING
DECREASE
FOOD WASTE
AND
MATERIAL USE
1
Capitalizing on innovation: A growth imperative
The Innovation Challenge
Material
Design
What
Our Customers
Want
What We
Control
Innovation Must Bring:
• Enhanced product performance
… that meets Value Chain needs
… and with sustainable solutions
• Lower production cost and energy demands
• Increased plant capacity / capability
Capitalizing on innovation: A growth imperative
Market-Driven Innovation Model
Innovate AccelerateCollaborate
Value Chain
Application DevelopmentMaterial
Science
Process
Research
Catalyst
Research
Converters
Commercializatio
n
Material
Science
Process Research Catalyst
Research
Application Development
Market to Monomer
Value Chain Driven Innovation
Converter
Supplier / Equipment
Manufacturer
Brand Owner
Retailer
Commercializatio
n
Material
Science
Process Research Catalyst
Research
Application Development
Market to Monomer
Value Chain Driven Innovation
Converter
Supplier / Equipment
Manufacturer
Brand Owner
Retailer
Commercializatio
n
Material
Science
Process Research Catalyst
Research
Application Development
Market to Monomer
Value Chain Driven Innovation
Converter
Supplier / Equipment
Manufacturer
Brand Owner
Retailer
Commercializatio
n
Material
Science
Process Research Catalyst
Research
Application Development
Market to Monomer
Value Chain Driven Innovation
Converter
Supplier / Equipment
Manufacturer
Brand Owner
Retailer
Commercializatio
n
Material
Science
Process Research Catalyst
Research
Application Development
Market to Monomer
Value Chain Driven Innovation
Converter
Supplier / Equipment
Manufacturer
Brand Owner
RetailerEquipment
Manufacturers
Brand Owners
Retailers
Capitalizing on innovation: A growth imperative
Resins to Structures Deliver Functionality & Sustainability
ML Structures
3-11 Layers
Down-gauge
Enable Recyclability
Reduce Energy
and Waste
FunctionalityML Structures Sustainability
Capitalizing on innovation: A growth imperative
Catalysis Can Significantly ImproveProcess Sustainability
Increasing Thermal Stability
and Efficiency
Polyethylene: Higher Efficiency and Plant
Throughput Through Improved Catalyst Design
Capitalizing on innovation: A growth imperative
Superior Packaging Abuse Resistance
DOWLEXTM ELITETM INNATE™
Superior Stiffness & ToughnessReduced Weight & Thickness Higher Performance
Up to 25% Down-gauging
Innovate AccelerateCollaborate
1X
2X
4X
DOWLEXTM ELITETM INNATE™
Capitalizing on innovation: A growth imperative
Key Elements of the Innovation
To
ug
hn
ess
Stiffness
INNATE™ Precision Packaging Resins
Traditional mLLDPE
Catalyst & Process Innovation that delivers:• High MW capability
• Optimized macromolecular architecture
• High co-monomer incorporation
• Can run at high Rx temperature (> 160o C)
… High production rates and improved energy
integration/efficiency
Market Value Proposition
Excellent sustainability profiles due to light-weighting potential
Film toughness without compromising stiffness and other key properties
Capitalizing on innovation: A growth imperative
Enhancing Abuse and Drop Test Performance
Laminated Heavy Duty Bags: Rice/wheat flour bags, fertilizer bags, seed bags, etc.
Example: 5kg rice bag
Structure: BOPA (15 µm)//PE (100 µm)
Unmet need: unable to meet a stringent 5m drop test
requirement from a brand-owner
Example: 5kg seed bag
Structure: PET (12 µm)//PE (140 µm)
Unmet need: Downgauging to 100 µm to reduce
cost & increase the yield
0
500
1000
1500
2000
2500
Control 30% INNATE™ ST50
70% INNATE™ TH60
Dart
Im
pa
ct
Str
en
gth
(g
)
0
500
1000
1500
2000
Incumbent (140 μm) INNATE™ ST50 (100 μm)
Dart
Im
pa
ct
Str
en
gth
(g
)
Capitalizing on innovation: A growth imperative
Impact Across Entire Value Chain Accelerates Implementation
Retailer & Consumer
Co-PackerBrand OwnerProcessing
ConverterProcessing
ResinManufacturer
ProcessabilityPolymer Design
Package Performance
The Entire Value Chain Must Be Considered
Economic
ImpactPolymer
Differentiation
Processing
Economics
Tougher
Performance
Reduced
Unsaleable Downgauge
Bag Drop Brand TrustPerformance &
Value Positioning
vs. Asset Avg. Reduced Costs Example
Dow
Resin Bag10% Meets Targets Highly Satisfied
Competitive Cost
to Produce
Reduced Bag Breaks
Capitalizing on innovation: A growth imperative
Recycle Solutions for Barrier and Non-Barrier Applications
Reverse printed PE
adhesively laminated to
3-layer PE sealant film
5/7-layer coex
Barrier Film with
EVOH/PA
Recyclable PE
(Monomaterial Laminate)
Recyclable PE Based
Barrier Film
Seal
Jaw
Lamination
Layer
Coex
Layer
Sealant
Layer
Adhesive
Layer
Coex
Layer
Laminate
Seal
Jaw
Surface
Layer
Barrier
Layer
Tie
Layer
Coex
Sealant
Layer
Capitalizing on innovation: A growth imperative
Package Design Enables Sustainable Innovation
Package DesignReduced Weight Efficient Packaging
InnovateCollaborate Accelerate
Capitalizing on innovation: A growth imperative
Sustainable Impact Is Needed Across the Value Chain to Succeed
Package Design
Industry and Consumer Engagement
Recyclability
Downgauging / Lightweighting
Catalyst Breakthroughs
Improved Performance
Process Innovation
Retailer & Consumer
Brand Owner ConverterResin
Manufacturer
Recycle Compatilabizers
Capitalizing on innovation: A growth imperative
Path Forward: Working Together
• Increase Consumer Education & Collection Understand the value of plastics Segregation at source
• Improve Waste Management Infrastructure
• Enhance Recyclability All-PE technology Compatibilizer
• Develop End Use Markets Mechanical recycling Chemical recycling Energy recovery Be creative
Capitalizing on innovation: A growth imperative
EUROPE
MEAF
CHINA
REST of
ASIAINDIA
U.S. Gulf Coast
1535 kta
USA / CANADA
SOUTH
AMERICA
Sadara
1300 kta
Solution PE 750 KTA
LDPE 350 KTA
Elastomers 220 KTA
CENTRAL
AMERICA
ELITE™ 400 KTA
LDPE 350 KTA
NORDEL™ 200 KTA
Elastomers 330 KTA
We Believe in the Future of Plastics