FIRST BRAZILIAN PVC CONGRESS

Sao Paulo, Brazil

June 6-8, 2005

Helmuth Leitner

3

DSPl / HLR

Plastics SectorSOLVAY SBU VINYLS

June 6-8, 2005

There are good news from Latin America to US and Europe

PVC is increasing its volume

TPO not as good as thought

Price/performance ratio is an essential in favor of PVC

BUT WE HAVE TO KEEP OUR CRUISING SPEED

PVC in Automotive

4

DSPl / HLR

Plastics SectorSOLVAY SBU VINYLS

June 6-8, 2005

PVC in Automotive

What was the background ?

The ELV in his first draft had a ban on PVC

Numerous (automotive) producer thought, it will happen

At least in the revision of ELV foreseen for 2005

If all producers change > NO impact on internal competition

But at least one didn’t play the game in Europe

5

DSPl / HLR

Plastics SectorSOLVAY SBU VINYLS

June 6-8, 2005

PVC in Automotive

The implementation of the ELV directive

Plastics Industry (+Automotive industry?) tries to substitute parts of recycling targets versus recovery

Phase out of lead is a fact in Europe – all will follow

The choice of (german) automotive industry

NO dismantling, > shredder

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DSPl / HLR

Plastics SectorSOLVAY SBU VINYLS

June 6-8, 2005

Options for shredder light fraction

Automotive Shredder Residue

Ferrous scrap Shredder Light Fraction (SLF) Heavy fraction

Pretreatment

Shredder residue-main processShredder Granulates

PVC-rich PVC-poor

Chemicalindustry

Blast Furnace

Gasification(SVZ)

Longer term: Novel gasification(e.g. Carbo-V)

MeOH

Lightfraction

7

DSPl / HLR

Plastics SectorSOLVAY SBU VINYLS

June 6-8, 2005

Stigsnaes feedstock recycling

A new feedstock recycling unit dedicated to PVC

rich streams will come on stream in early 2005

with a capacity of > 30 000 to/y

They are interested in creating a PVC rich fraction

out of ASR and to treat that

8

DSPl / HLR

Plastics SectorSOLVAY SBU VINYLS

June 6-8, 2005

PVC in Automotive PVC regaining acceptance (see also economic

situation of car industry in many parts)

But NOBODY will confirm in public

Trend to leather is favoring PVC (20 % in 2007 will have leather interior)

GM-Fiat, VW, Ford and BMW using increasingly PVC (BMW serie 6 and with serie 5 indoor panel)

New Ford C Max with PVC IP and also the new Passat

Ford EcoSport in Brazil launched with PVC

9

DSPl / HLR

Plastics SectorSOLVAY SBU VINYLS

June 6-8, 2005

PVC in Automotive

BUT Ford wishes a « Green PVC »

BMW « has no policy on PVC » > progress serie 3 has PVC and PU interior

DC « neutral » no longer anti-PVC statements in their Environmental Report

as well as PSA and Renault

10

DSPl / HLR

Plastics SectorSOLVAY SBU VINYLS

June 6-8, 2005

PVC-use in cars

Interiordashboard skins, carpets, door panels, consoles, arm rests, grips, interior seals, sun visors, seat coverings, luggage compartment covers

Othersunderbody coating, battery separation plates, fuel line protection

Exteriorbody trim, window encapsulation, bumper spoiler, door steps, roof rack coverings

Electrical wiringcable insulation, moulded plugs

11

DSPl / HLR

Plastics SectorSOLVAY SBU VINYLS

June 6-8, 2005

Plastics in dashboards

TF = Thermo Forming; SM = Slush Moulding; IM = Injection Moulding; SC = Spray Coating

SM TPO/TPU

SM PVC25,3%

SC PUR4,0%

TF TPO/ASA21,2%

TF PVC26,3%

IM23,2%

Year 2000 SM TPO/TPU

0,0%SM PVC25,3%

SC PUR4,0%

TF TPO/ASA21,2%

TF PVC26,3%

IM23,2%

Year 2003

SM TPO/TPU0.2%

SM PVC34.0%

SC PUR15.0%

Other50.8%

12

DSPl / HLR

Plastics SectorSOLVAY SBU VINYLS

June 6-8, 2005

Market evolution: PVC-slush

Total estimated European volume

0

2000

4000

6000

8000

10000

12000

14000

16000

1995 1997 1999 2001 2003

To

ns

13

DSPl / HLR

Plastics SectorSOLVAY SBU VINYLS

June 6-8, 2005

Material & process technology: basis for choice

Performance

CostWeight

Environmental aspects

14

DSPl / HLR

Plastics SectorSOLVAY SBU VINYLS

June 6-8, 2005

Design freedom

Cos

ts(m

ater

ial,

tool

,

Styling requirements

Cos

ts (m

ater

ial,

tool

, in

vest

men

t) TPOfoam sheet

TPOcompact sheet

PVCfoam sheet

ABS/PVCcompact sheet

PURSpray skin

PURcasting

TPUslush

PVCslush

Source: VDI; “plastics in Automotive engineering” (Mannheim, 2003)

15

DSPl / HLR

Plastics SectorSOLVAY SBU VINYLS

June 6-8, 2005

Market evolution: PVC-slush

Forecast

0

2000

4000

6000

8000

10000

12000

14000

16000

1998 2000 2002 2004 2006

To

ns

Forecast

Total estimated European volume

16

DSPl / HLR

Plastics SectorSOLVAY SBU VINYLS

June 6-8, 2005

Models with PVC-slush

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DSPl / HLR

Plastics SectorSOLVAY SBU VINYLS

June 6-8, 2005

                 

  

Models with PVC-slush

18

DSPl / HLR

Plastics SectorSOLVAY SBU VINYLS

June 6-8, 2005

Material & process technology: basis for choice

Performance:

Styling requirements

Visual appearance

Touch (Haptik)

Mechanical & physical properties

Surface properties

Ageing

Environmental aspects:

Emissions

Recyclability

19

DSPl / HLR

Plastics SectorSOLVAY SBU VINYLS

June 6-8, 2005

Advantages of PVC-Slush Technology

Cost / Performance

Design Freedom

Stress Free

Esthetics (color, aspect, soft touch, grain)

Scratch Resistance

Easy Processing

Available in any tailor made color

Low fogging

Perception of quality in car

20

DSPl / HLR

Plastics SectorSOLVAY SBU VINYLS

June 6-8, 2005

Reasons for future growth

All classes of vehicles

Other interior applications of PVC-slush (design uniformity)

Door panels

Other car manufacturers

21

DSPl / HLR

Plastics SectorSOLVAY SBU VINYLS

June 6-8, 2005

PVC in Automotive - what was done

Very intensive contacts to automotive industry

Demonstrate innovation in application and end-of-life

Correct mis-information (Dioxine, ELV, phthalates,…)

Another example:

Institudo do PVC collaborates with AEA (Automotive Engineering Association)

22

DSPl / HLR

Plastics SectorSOLVAY SBU VINYLS

June 6-8, 2005

PVC in Automotive – what to do more

Get in contact with « newcomers »: Hyundai and others

Stay in contact with all players

Continue innovation

THEN PVC will stay a material of choice in cars