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Dr. Andreas Neumann Department Manager Business Innovation & Technology 17 May 2016 Exploiting the Capabilities of HMC’s Technology Footprint

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Dr. Andreas NeumannDepartment Manager Business Innovation & Technology17 May 2016

Exploiting the Capabilities of HMC’s Technology Footprint

2www.hmcpolymers.com |

HMC Vision and Core Value

OperationalExcellence

Highest ethical standards and integrityMutual respect & trustCommitment to health, safety, environment & social responsibility

Market Driven

Innovation Portfolio

MNGMT

Sustainable Performance Driven Culture

Asia’snumber

ONE in PP

3www.hmcpolymers.com |

HMC Polymers

• Spheripol Line 1 (200 kt/a)– Production of HOMO and RACO,

• Spheripol Line 2 (250 kt/a)– Production of HOMO, HECO, RACO,

HcPP and Special RACO

• Spherizone Line 3 (300 kt/a)– Production of HOMO, HECO, RACO,

HcPP, Terpolymers and other specialities

• Oleflex PDH (300 kt/a)– C3- Monomer

4www.hmcpolymers.com |

HMC Polymers – Our Customer Value Proposition

• State-of-the-art technology and production facilities

• World class operational excellence

• Expert front line staff

• Innovation driven and customer focused

• Joint developments with JV stakeholder LyondellBasell

5www.hmcpolymers.com |

2015 Customer EventConclusion slide by Dr. Andreas Goeldel:

• HMC will continue to innovate

– Improving existing resins

– Opening up new applications for PP• Intermaterial Replacement (IMR)

– Co-developing with our customers

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Having a Vision…

If I had asked people what they wanted, they would have said

‘faster horses’.

- Henry Ford -

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The Three Types of Innovation

• Incremental Innovation

• Disruptive Innovation

• Revolutionary Innovation

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The Three Types of Innovation in the World of PP

• Incremental Innovation

• Disruptive Innovation

• Revolutionary Innovation

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MegatrendsWhat will our world look like in 5, 10, 20 years?

• Technology

• Society

• Mobility

• Urbanization

• Individualization

• Aging population

• Sustainability

• Alternative energies

• …

10www.hmcpolymers.com |

HMC Technology FootprintSpheripol Technology

•The 1st polymerization stage is in liquid phase:

– The reactor volume is smaller

– Higher density

– No unused reactor volume

•The energy consumption is lower

– Liquid pump vs gas compressor

•The heat transfer rate is higher

– No formation of hot-spots

•The product quality is higher

– No temperature gradient in the reactor

– Higher catalyst mileage, higher product purity and consistency

• CAPEX

• OPEX

• Operability / Process Reliability

• Product Quality

11www.hmcpolymers.com |

MegatrendsWhat will our world look like in 5, 10, 20 years?

• Technology

• Society

• Mobility

• Urbanization

• Individualization

• Aging population

• Sustainability

• Alternative energies

• …

12www.hmcpolymers.com |

What is a Capacitor?

• Take two electrical conductors and separate them with an insulator and you make a capacitor: something that can store electrical energy. Adding electrical energy to a capacitor is called charging; releasing the energy from a capacitor is known as discharging.

• A capacitor is a bit like a battery, but it has a different job to do. A battery uses chemicals to store electrical energy and release it very slowly through a circuit. A capacitor generally releases its energy much more rapidly - often in seconds or less. If you're taking a flash photograph, for example, you need your camera to produce a huge burst of light in a fraction of a second. A capacitor attached to the flash gun charges up for a few seconds using energy from your camera's batteries. Once the capacitor is fully charged, it can release all that energy in an instant through the flash bulb.

• Capacitors come in all shapes and sizes, but they usually have the same basic components. There are the two conductors (known as plates, largely for historic reasons) and there's the insulator in between them (called the dielectric). The two plates inside a capacitor are wired to two electrical connections on the outside called terminals, which are like thin metal legs you can hook into an electric circuit.

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Polypropylene Capacitors

Polypropylene capacitors are capacitors that have a dielectric that is made of polypropylene film.

• Polypropylene capacitors cover the value range of 100pf to 10µF. One of their main and key features is their high working voltage. Polypropylene types with working voltages up to 3000V are made. These features make polypropylene capacitors useful in circuits in which operating voltages are typically high. These include power supply circuits, power amplifiers, particularly valve amplifiers and TV circuits. Another great advantage of polypropylene capacitors are their great tolerance values. Tolerance is about 1 percent, so it's pretty precisely near their nominal values. Polypropylene capacitors are used when a better tolerance is needed than what a polyester capacitor can provide. Polypropylene capacitors also have high isolation resistance, which makes them a good choice for coupling and/or storage applications. They exhibit stable capacitance for frequencies below 100KHz.

• These capacitors are used for noise suppression, blocking, bypassing, coupling, filtering, timing, and handling pulses.

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Higher Catalyst Mileage, Higher PurityPolypropylene Resin for Dielectric Films

• PP resin suitable for dielectric film to be used in capacitors production for electrical and electronic equipment.

• Key properties:– Very high purity

– Good heat resistance

– Excellent drawability

– Good stiffness

– Metallizable

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Properties

Market ReferenceCapacitor

Grade

HMCTarget

MoplenHP6047

MFR (g/10min.) 3.5 3 3.2

MWD 9.50 10.3

Titanium (ppm) 1 <= 3 < 1

Aluminum (ppm) 2 <= 5 2.5

Magnesium (ppm) <1 <= 5 1.5

Chlorine (ppm) 2 <= 5 3

Calcium 4 <= 5 5

Ash Content (ppm) 30 <= 20 20

Flexural Modulus (MPa) - 1700 1660

HDT (°C) - 103 102

Moplen HP6047Novel PP grade for Dielectric Film

16www.hmcpolymers.com |

MegatrendsWhat will our world look like in 5, 10, 20 years?

• Technology

• Society

• Mobility

• Urbanization

• Individualization

• Aging population

• Sustainability

• Alternative energies

• …

17www.hmcpolymers.com |

Megatrend ‘Society’:Frozen to Microwave PP Resin

Driving Force

• Change of consumer behavior– Urbanization of population

– Single household or both partners work

• Growing demand for ready meals– From Frozen to Microwave

– From Chilled to Microwave

Challenge

• Excellent stiffness/impact balance required– Shock freezing

– Heating with high oil content

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Adstif EA6052Frozen to Microwave PP Resin

Development product:

Adstif EA6052

PropertiesAdstif

EA6052

MFR (g/10 min.) 1.5 - 1.8

Flexural Mod (MPa) 1650

Impact strength (J/m) > 150

Tensile strength (MPa) 36

Elongation yield (%) 10

HDT (Deg C) > 115

19www.hmcpolymers.com |

MegatrendsWhat will our world look like in 5, 10, 20 years?

• Technology

• Society

• Mobility

• Urbanization

• Individualization

• Aging population

• Sustainability

• Alternative energies

• …

20www.hmcpolymers.com |

Megatrend ‘Sustainability’:PP Copolymer for ABS Replacement

Driving Force

• Engineering plastics and metals have been extensively replaced by polypropylene (PP)– achieve weight reductions

– cost savings

– increased productivity

– enhanced health & environmental safety

– improved chemical, thermal and yellowing resistance

Challenges– Scratch resistance vs. ABS

– Thermoformability with ABS machines

– Stiffness/impact balance vs. ABS

– Glossiness vs. ABS

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Adstif EA6052 vs. ABS

Items Method EA6052

Density, g/cm3 ASTM D-792 @ 23 oC 0.90

MFR (g/10 min.)ASTM 1238 (210 C @ 2.16 kg)

1.5

Flexural Mod (MPa)

ASTM 790 1650

Impact strength (J/m)

ASTM 256 @ 23 C 180

HDT (oC) ASTM 648 115

Tensile strength (MPa)

ASTM638 36

Mold Shrinkage, MD (%)

ISO 294-4 0.8

Items Method ABS1 ABS2 ABS3

Density, g/cm3 ASTM D-792 @ 23 oC 1.1 1.1 1.1

MFR (g/10 min.)ASTM D 1238 (220 C @ 10 kg)

7 6 6

Flexural Mod (MPa)

2050 2300 2300

Impact strength (J/m)

300 260 280

HDT (oC) 85 85 86

Tensile strength (MPa)

44 48 47

Mold Shrinkage, MD (%)

Int. 0.6 0.6 0.6

� EA6052 provides advantages such as Lower Density and higher heat resistance

with some comparable physical properties� For some different properties, i.e. Modulus, Impact and Shrinkage, required to

evaluate on the end applications

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PP and Sustainability

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PP and Sustainability

Source: http://www.slideshare.net/basf/detlef-kratz-at-basf-science-symposium-2015

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HMC Technology FootprintSpherizone Technology

• LyondellBasell’s breakthrough Spherizone multi-zone circulating reactor process provides an efficient method of manufacturing a wide range of high-quality polypropylene and novel, propylene-based polyolefinic resins.

• Spherizone process resins have the potential to expand polypropylene’s use into entirely new applications and markets.

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Exploiting Technology CapabilitySpherizone Technology – Foamable PP

• Polypropylene foam has many desirable and beneficial properties over EPS– Microwaveable

– Hot filling and sterilization possible

– Less restrictions w/r to fatty food compliancy

– Excellent moisture barrier

– Hinge integrity

– Smooth surface “Pleasant Touch”

– Not fragile

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Exploiting Technology CapabilitySpherizone Technology – Foamable PP

• Current Commercial Solutions for foamed PP:– ‘HMS PP’: Cross-linked or

branched PP by e-beam irradiation, grafting or peroxidic oxidation

– EPP foam beads

– Multi-step processes from original PP resin to final foamed item vie PP modification step

• Spherizone technology capability:– Possibility to extremely

broaden the PI in order to obtain VBMWD PP with excellent Melt Strength characteristics

– Resins with outstanding product homogeneity even when bimodal

– Possibility to incorporate ethylene and butene-1 as co-monomers up to high contents

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Spherizone TechnologyCapability to use Butene-1 as Co-Monomer

• Spherizone technology enables HMC to produce materials with bimodal matrix design with respect to molecular weight as well as C2- co-monomer distribution

• HMC’s Spherizone line is equipped to use C4- as co-monomer for the production of C4-RaCo and Terpolymer.

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Exploiting Technology CapabilityNovel Resins with low SIT

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Exploiting Technology CapabilityNovel Resins with low SIT

New product solutions:

Clyrell RC221M• SIT 115°C• Excellent Haze and Gloss• Barefoot formulation for

sealing and metallizablelayer

Clyrell RC6049• SIT 115°C• AB formulated for low

blocking• Suitable for metallisable

and sealing layer

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Adsyl 6064Terpolymer with low SIT for CPP & BOPP Films

Adsyl 6064

PropertiesTerporesins

MFR (g/10min) 7

HAZE (%) 0.23

Gloss (%) 148

HDT (C) 75

SIT (C) 107

0

1

2

3

4

5SIT

Seal Strength

Heat DistortionTemp.Transparency

Gloss

Clyrell RC221M Adsyl 6064

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Exploiting Technology CapabilitySpherizone Technology – Terpolymers

Properties PP Homopolymer

PP Random Copolymer

PP HeterophasicCopolymer

PP Terpolymer

Stiffness O -- O- O-

Impact O O+ ++ O+

Transparency O ++ -- ++

• PP Terpolymers represent a new PP product family combining the properties Stiffness and Transparency complementing Homo, RaCo and HeCo property profiles

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HMCMarket Driven Innovation

Conclusion:

• HMC uses the best technologies for making PP.

• HMC’s PP plants have the capability to produce innovative products and product architectures.

• HMC is your partner for innovation in polypropylene.– Incremental

– Disruptive

– Revolutionary

• Looking forward to innovating together with you…

Thank you for your attentionDisclaimer:Before using a HMC Polymers product, customers and other users should make their own independent determination that the product is suitable for the intended use. They should also ensure that they can use the HMC Polymers product safely and legally. This document does not constitute a warranty, express or implied, including a warranty of merchantability or fitness for a particular purpose. In addition, no immunity under HMC Polymers’, LyondellBasell's or third parties' intellectual property rights shall be implied from this document. No one is authorized to make any warranties, issue any immunities or assume any liabilities on behalf of HMC Polymers except in a writing signed by an authorized HMC Polymers employee. Unless otherwise agreed in writing, the exclusive remedy for all claims is replacement of the product or refund of the purchase price at HMC Polymers’ option, and in no event shall HMC Polymers be liable for special, consequential, incidental, punitive or exemplary damages.