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TRANSCRIPT
RECYCLEREADY TECHNOLOGY
TO
CREATE VALUE FOR RECYCLING STREAM
MILIND CHAVAN
INDIA P&SP SUSTAINABILITY
April 12, 2019
New Dow
Sustainability Priorities
Why Recyclable Packaging
RecycleReady Technology
Improved PCR with Compatibilizers
Collaboration to give end of life to plastics waste
Alliance to End the Plastics Waste
AGENDA
ABOUT DOW
(1) Source: Dow Inc. Amendment #4 to the Form 10 filed on 3/8/2019
• 2018 Pro Forma Op. EBITDA of $9.1B
• 2018 Pro Forma Op. EBIT of $6.2B
• 2018 Pro Forma Net Sales of $49.7B
• 113 manufacturing sites in 31 countries
• Serving customers in ~160 countries
Corporate Stats1
3
PACKAGING & SPECIALTY PLASTICS
4(1) Source: Dow Inc. Amendment #4 to the Form 10 filed on 3/8/2019
Packaging and Specialty Plastics Hydrocarbons & Energy
• Advantaged feedstocks
• Regional presence
covering >110 countries
• 3 versatile and
differentiated polymer
process technologies
• ~5,700 employees
~ $700B ADDRESSABLE MARKET SEGMENT
GROWING AT ~1.5x GLOBAL GDP
FLEXIBLE PACKAGINGWorld’s largest producer of
polyethylene and adhesives for
flexible food and beverage packaging
CONSUMERLeveraging capabilities in elastomers,
fibers and polyolefin technology for
hygiene applications, artificial turf,
sporting goods and cosmetics
RIGID PACKAGINGHigh performing resins bottles, drums,
caps and lids that are lightweight and
durable, with design versatility
INFRASTRUCTUREDurable resin technology for
pressure pipe, power/telecom
transmission, road paving and
construction applications
~75% of Dow’s raw material spend
17crackers
JV crackers5
>1MM BPD
Consume
of feedstocks
~3,000people together
working for profitability
>7GWof power and steam
30Major sites
across
>0.7GWrenewable
$
31%
69%
2018 Pro Forma Sales
by Global Business1
Packaging & Specialty Plastics is a world leader in
plastics and consists of two highly integrated global
businesses: Hydrocarbons & Energy and Packaging
and Specialty Plastics. The segment employs the
industry’s broadest polyolefin product portfolio,
supported by Dow’s proprietary catalyst and
manufacturing process technologies to deliver high
performing and more sustainable plastics to
customers in food and specialty packaging; industrial
and consumer packaging; health and hygiene; caps,
closures and pipe applications; consumer durables;
and infrastructure.
Hydrocarbons
& Energy
Packaging and
Specialty
Plastics
Pro Forma Net Sales: $24.3B
Our Vision: A More Circular Economy
Make sure all plastic packaging
is recovered and
its value is captured instead of ending up
buried in
a landfill somewhere
®™ Trademark of The Dow Chemical Company (Dow) or an affiliated company of Dow
OUR SUSTAINABILITY PRIORITY AREAS
6
1 2 3
DECREASEFOOD WASTE
AND
MATERIAL USE
INCREASERECYCLABILITY
OF FLEXIBLE
PACKAGING
RECOVERTHE VALUE
FROM WASTE
Convert More & more packaging formats to Recyclable
Collaborate to give end of life to non recyclable
75%
25
%
WHY RECYCLABLE PACKAGING
Improved economic value
Reduced environmental impact
Lowering consumption of plastics
Drives circular economy
Value for Waste pickers
Minimizing plastics to landfill
Less load on natural resources
7
Sources: E<https://www.indiatimes.com/news/india/milk-packs-can-be-used-to-make-irrigation-pipes-one-third-of-
garbage-has-high-recycle-value-349933.html>
WHAT MAKES A PACKAGE RECYCLABLE?
8
Must Have A Market For
the Recycled Material
WHAT MAKES A PACKAGE RECYCLABLE?
Key is to have
High economic value
RECYCLEREADY™ TECHNOLOGY FROM DOW
* Source: Pouch & Film Study, Dow Market Intelligence
35%
25%
15%
25%
High Barrier
Multi-material
(eg. Foil/
Metalized, PET/PE)
No Barrier
Mono-material
(All PE)
Low Barrier
Multi-material
(eg, PE/PE)
Barrier
Multi-material
(EVOH/PE/PA)
2
4
1
* Source: Dow Internal assessment
3
RECYCLABLE PACKAGING – ECONOMICS & VALUE CREATION
Economics Value creation
10
Preference to Recyclable: The cost of collection handling of post consumer plastic waste should be manageable from recyclates value
Elements Non-
recyclable
Recyclable
EPR Cost ~Rs.10-15/Kg ~Rs.5-7/kg,
Existing Stream
Value for PCR Zero (Cement
Kiln)
~Rs.65/Kg
Waste pickers
livelihood
~Rs 2-3/Kg ~Rs.12-15/Kg
All numbers are based on our interaction and understanding and are typical and may vary from region to region
Performance
indicator
PET/PE PE/PE Benefits
Product
wastage
reduction
2-3% <1% Cost saving
Seal Width ~8mm 3mm Laminate
saving 2%
Packaging
Yield
Less Improved by
13% due to
density
difference
~4% lower
cost
Productivity 45 pouch/min 45 pouch/min No change
Avoid black, fillers, pigments where possible
Avoid paper with plastics
Avoid contamination with different Polymers
Avoid difficult to recycle materials like PVC
Integrate compatibilisers in order to facilitate post Industrial and post consumer
recycling (RecycleReady)
Lightweight , wherever possible while maintaining or even improving
performance
DESIGN GUIDELINES FOR BETTER RECYCLABILITY
11
Recyclability of PET/PE or Nylon/PE laminates is challenging
Due to low economic value
ALL PE RECYCLABLE PACKAGING
12
DOW CONFIDENTIAL - Do not share without permission
COEX 3 layers
Blown Film
Development of blown PE print film with Dow’s unique
formulation offers unprecedented printability, brings
extraordinary laminate properties like never before…
20µ Film which can be printed on existing rotogravure machine without comprising
printing speed (300mpm – same as PET film)
Dow’s solution gives 3 times lower stretching ability compared to existing PE based
print on rotogravure machine giving better print registrations
Excellent Optical Properties (Clarity and Gloss)
Twice the bending stiffness
High Temperature Resistant
Lower WVTR (3.2gm/sqm/day for 50um)
Packs on VFFS at same rates
Zero wastage from packing to retailer
What has been achieved with Dow’s Solution?
RECYCLABLE BARRIER FILMS POWERED BY RETAINTM
Expects recyclable packaging to address the PWM2016 rules
Brand
OwnerKey Benefits
• Recyclable packaging
• Creating circular Economy
• Enhanced economic value
Recyclable Barrier
Film
Converter
Need to provide the easy recyclable solution for barrier films
Testing & certification as arecyclable pack Certification
Post Consumer
waste
• Recycled to use in the secondary applications
• Recycler gets better value
• Recyclate has higher economic value
REAIN in tie layer to help recycle Film with nylon as a barrier.
Recyclable for better applications
Structural
Approach
HOW RETAIN BASED SOLUTIONS WORK?
14
Industrial Validation
RETAIN based
films Shredded
Re-granulated (RG)
Dried
>40% of
RG used in
Pipes
No deterioration
of surface
roughness in
pipes
Successful
qualification
UNIQUE PORTFOLIO FOR MECHANICAL RECYCLING
15
Impact Modification
Viscosity Control
+Stress Crack
Resistance
Compatibilization
APPLICATIONS | OFFERING FOR PACKAGING RECYCLING
SOLUTIONS FOR POST-INDUSTRIAL AND FOR POST-CONSUMER WASTE
7
Post Industrial Waste (PIR)
PE and EVOH & PA
PP and EVOH & PA
PE and PP
Post Consumer Waste (PCR)
Flexibles
Coming from separate
collection
Coming from mixed collection
Rigids
PET PE and PP
HEFTY ENERGY BAG OMAHA PROGRAM
17
Collaborative effort between:
Improve Education Drive ScienceImprove Waste Management
Develop End Market
Build Collaboration
ASIA PACIFIC FOCUS
18
DEVELOP END USE MARKET – PLASTIC WASTE ROAD
19
• Two documentary videos
• Strong municipality supports
• 8% bitumen replacement
• 4 partners and 2 municipalities
• 40+ volunteers and pickers
Global alliance toend plasticwaste
A new CEO led, cross-sector, not-for-profit organization with a
clear mission to develop, accelerate & deploy solutions,
catalyze public & private investment and engage
communities to help end plastic waste in the environment
I N N O V A T I O N
Innovate new materials, designs, technologies and business models based on science and economics
C L E A N U P
Develop solutions to address and clean up areas of existing plastic waste in the environment
E D U C A T I O N
Engage and collaborate with governments, businesses and consumers to drive effective solutions
I N F R A S T R U C T U R E
Catalyze investment in enhanced waste infrastructure to prevent plastic from reaching the environment
Alliance to End Plastic Waste Four Part Strategy
1. Enhance recyclability • All-PE technology
• Compatibilizer
2. Improve waste management infrastructure• Modernize our Material Recovery Facilities (MRF’s)
• Increase waste collection
3. Educate and engage consumers• Understand the value of plastics
• Source segregation
4. Closing Plastics Loop & Drive end-use markets for
recycled plastics • Mechanical recycling
• Chemical recycling
IN SUMMARY: THERE ARE SOLUTIONS
Plastics is Not Waste
DOW CONFIDENTIAL - Do not
share without permission
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3
Mobile: +91 9920091525