Post on 02-Apr-2018
transcript
1
Daniele Ferrari Daniele Ferrari –– CEO VersalisCEO Versalis
Perspective of the rubber industry:
sustainability shaping the future
56th AGM * “Future Vision.....Forward Movement”
Global oil demand vs supply from non-OPEC countriesGlobal oil demand vs supply from non-OPEC countries Oil price in Europe vs natural gas price in the USOil price in Europe vs natural gas price in the US
$/barrel$/BTU
The world is changing The world is changing rapidly and unpredictably: rapidly and unpredictably: the the oil oil price dipprice dip
Var %
512020
4
3
2
1
0
100
80
60
40
204
6
8
10
12
14
16
18
56th AGM * “Future Vision.....Forward Movement”
-12004 2006 2008 2010 2012 2014 2016
2005 2007 2009 2011 2013 2015
20
00
2
US natural gas (Henry Hub)
Oil (Brent)Non-OPEC Supply Demand
2
The The chemical chemical industry can hold a breath, industry can hold a breath, but the competitive but the competitive framework in the long run is framework in the long run is structurally unchangedstructurally unchanged
Europe Stimulus on demand and margins increased due to lower
energy and feedstock prices Positive currency effect on exports, partly offset by the import
of raw materials+3.6%
US
-3%
Russia Economy squeezed between
oil decline and sanctions Competitive export into EU
due to rouble depreciation
L i A i
North America Highly competitive industry
(production cost base) High level of chemical
investment projects ongoing
+1.2%Euro Area
+1.3%
+3.3%/+4.9%
+6.4%
56th AGM * “Future Vision.....Forward Movement”
Asia Steady slowdown in China to
continue, while India gaining ground From over-supply to well-balance
supply in the medium term
Middle East / Africa GDP diversification need: most countries
vulnerable to oil price decline Priority towards downstream integrated
chemical projects
Latin AmericaWeaker-than-expected domestic
demand in Brazil (GDP +0.3%) Net imports of raw materials and
products from US and focus on renewable sources
GDP growth 2015 (source: IMF World Economic Outlook, Update January 2015)
Megatrends driving market opportunitiesMegatrends driving market opportunities
Disruptive technology
Shortage of resources &
Mobility &
Demographic change
Economic shifts &
Key global megatrends impacting the chemical industryKey global megatrends impacting the chemical industry
developments
High performance
Climate change
Chemicals and Mega/smart
Urbanizationchange
Population growth
Globalization
Economic power of
56th AGM * “Future Vision.....Forward Movement”
g pmaterials (i.e.smart, nano, bio)
Customized and personalizedproducts
plastics from renewables
Environmentalimpact assessmentof processes and products
g /cities and infrastructure
Safe, fast and ecologicallysound mobility
p gin emerging countries
Aging societies
pemerging markets
Increasing middle class and growing wealth
3
Butadiene and synthetic rubber: will the price ever recover ?Butadiene and synthetic rubber: will the price ever recover ?
Weak crude oil and natural rubber markets weigh on C4 1 500
2.000
2.500
3.000
3.500
4.000
4.500
Natural rubber and butadiene price trends (€/ton)Natural rubber and butadiene price trends (€/ton)
Synthetic rubber
gvalue chain
15
20
Synthetic rubber: Operating capacity by area vs Global Demand (Mton)Synthetic rubber: Operating capacity by area vs Global Demand (Mton)
0
500
1.000
1.500
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Natural Rubber (Spot SEA) Butadiene (Contr. Delivered WE)
56th AGM * “Future Vision.....Forward Movement”
market is in oversupply, but demand will continue expanding
0
5
10
2010 2011 2012 2013 2014 2015 2016
EMEA AMERICAS ASIA Global Demand
The outlook for the rubber industry: what’s at stakeThe outlook for the rubber industry: what’s at stake
Sustainability in the automotive supply chain as a tool of competitive advantage
Tyre labelling and regulatory pressure in
OPPORTUNITIES CHALLENGES
Boom in butadiene and synthetic rubber capacity additions, especially in Asia
Progressive saturation of the rubber marketsy g g y pthe developed markets
Evolving tyre technology towards better performances and new raw materials
Butadiene supply to tighten in the medium term
Strong growth of the vehicles demand in emerging countries
Progressive saturation of the rubber markets in the developed countries (slow demand)
Surplus of natural rubber (new plantings and producing countries coming to market)
Uncertainty of macroeconomic scenario: slowdown of emerging countries
Imports of light vehicles and tyres in North America and Europe
56th AGM * “Future Vision.....Forward Movement”
4
AllAll--round sustainability: a competitive factor to create shared valueround sustainability: a competitive factor to create shared value
Environmental impact
Suppliers Access and
Viability
EmployeeSkills
Gender and Racial Equity
Worker Safety
Employees Health
Water Use
Energy Use
Company Productivity
Creating a competitive advantage by leveraging social and environmental needs
56th AGM * “Future Vision.....Forward Movement”
Source: Harvard Business Review, “Creating Shared Value” by E. Porter and Mark R. Kramer
environmental needs Reconceiving products, needs and customers Redefining productivity in the value chain Enabling local cluster development
The The tyretyre value chain: sustainability value chain: sustainability shaping shaping the the futurefuture
NR Plantation
Tyre factory Automotive/ Consumer/
SR Producer
Tyre factory /Retailer
/Stakeholder
+ performance + transparency
56th AGM * “Future Vision.....Forward Movement”
5
Consumers go ‘green’Consumers go ‘green’
92%Fuel efficiency
Top consumer purchase issues
The product sustainability
62%
62%
64%
71%
77%
78%Safety innovation
Ergonomics and comfort
Environmental friendliness
Vehicle styling
Use of alternative fuel technologies
Enhanced vehicle lifespan
The product sustainability profile is central to end-users’ choice
Green consumers look for efficient, longer-lasting and high performance cars, to save costs keeping safety and comfort
56th AGM * “Future Vision.....Forward Movement”
Note: percentage of respondents rating issues as “extremely important” and “very important”. Source: KPMG’s global Auto Executive Survey 2013
Automotive industry: collaboration for sustainabilityAutomotive industry: collaboration for sustainability
Working together to improvethe supply chain sustainability
A CASE STUDY: the A CASE STUDY: the European European Automotive working Automotive working group on supply chain sustainabilitygroup on supply chain sustainability
the supply chain sustainability
Guiding principles to achieve excellence, innovation and performance in a sustainable manner:
• Business Ethics
• Environmental Standards
• Human Rights
56th AGM * “Future Vision.....Forward Movement”
• Human Rights
6
TyreTyre makers makers going beyond compliancegoing beyond compliance
Extensive and specific metrics integrated with financial tiv
e
Curve of environmental awareness
Few metrics low
External best practices & “own” standard and data to evidence achievements
greporting to international auditable standards
Ch
ange
& C
ompl
exit
y
Qua
ntita
tQ
ualit
ativ
e
Less advanced tire makers
Leading tire makers (i.e. Bridgestone, Michelin, Pirelli)
56th AGM * “Future Vision.....Forward Movement”
Source: AB sustain, Tire Industry ResearchBob Willard, the next Sustainability Wave – 5 stages of sustainability
Few metrics, low transparency, use of specific standards and indexes
Commitment
Pre-compliance Compliance Integrated strategy
Purpose & passion
Rubber producers Rubber producers facing sustainability facing sustainability challenges challenges
Natural RubberNatural Rubber Synthetic RubberSynthetic Rubber
Technology and performance Butadiene/isoprene availability Energy saving (resource exploitation) Renewable resources Emissions and pollution
Productivity Quality and reliability Waste, water and energy management Health & Safety Forest sustainability
56th AGM * “Future Vision.....Forward Movement”
Emissions and pollution Forest sustainability
Communication Price volatility Tyre Regulations
7
The The rubber industry rubber industry is on the right is on the right track ...track ...
Regulation / LabellingRegulation / LabellingRegulation / Labelling
Alternative feedstocksAlternative feedstocksAlternative feedstocks
Reduce-Reuse-RecycleReduce-Reuse-RecycleReduce-Reuse-Recycle
56th AGM * “Future Vision.....Forward Movement”
Life Cycle AssessmentLife Cycle AssessmentLife Cycle Assessment
Compliance: a bridge between Compliance: a bridge between environment environment and performanceand performance
EU and TurkeyLabel enforced since Nov 2012, based on Fuel Economy (RR), Wet Grip (WG) and Noise
USLabel on RR, WG and wear under discussion at federal level
ChinaGreen tire industry self-regulation standards since Feb 2014
Brazil Label mandatory since 2015, same scope as EU
Korea Label mandatory since Nov 2012, based on European scheme
Japan Label scheme on a voluntary basis since 2012
EUTargets to reduce CO2 emissions for Original Equipment Manufacturers since 2009
USEmission standard CAFE on Fuel Economy set by the US Environmental Protection Agency (EPA)
Regulations
56th AGM * “Future Vision.....Forward Movement”
Labelling
Europe paves the road worldwide for tyre requirements, the major driver for performance improvement and technological innovation
8
Alternative Alternative feedstocksfeedstocks: innovation : innovation backed up by sustainabilitybacked up by sustainability
1° generation s-SBR & HCBR (Ti, Co, Ni)
Next generation functionalized HMW s-SBR & BR
Biobutadiene-based s-SBR, BR
Bioisoprene-based IRe-SBRLow Cis BRIR, IIR
SR
Functionalized s-SBR, Nd-BR
GuayuleRussian Dandelion
HeveaBrasiliensis
New cellulosic fibers
NR
Highly aromatic oils
Mineral safe oils (low PCA content)
Vegetable oils(extensor, and loose)O
ils
56th AGM * “Future Vision.....Forward Movement”
Precipitadedsilicas
CB and modified silicas
Nanotubesand nanofillerCarbon
blacksFille
rs
Biofillersand fibers
ReduceReduce--ReuseReuse--RecycleRecycle
Retreading trucks retreading up to 3-4 times (even more for off-highway use) retreading involves 20% of rubber in trucks tyres 70-80% reduction in energy and resources consumptiongy p
Run flat tyre reducing spare tyres and weight/fuel consumption
Recycle and Disposal recycle in new tyres: there are issues to be solved regarding
t h l l i ti d li biliti
56th AGM * “Future Vision.....Forward Movement”
technology, logistics and liabilities recycling options in different applications: road paving, rubber
flooring, artificial turf infill, etc. energy recovery as alternative to landfill
9
Quantifying Quantifying environmental environmental impacts: the impacts: the Life Cycle AssessmentLife Cycle Assessment
Raw Materials Manufacturing
Synthetic Rubber Industry
Focus on Sustainability:
Minimization of waste, air emissions, waste water
D l i t h l i t
Transportation
Product
End of life
i ib i
Developing new technologies to improve energy efficiencies
Transitioning to raw materials having lower impact on the environment
Utilization of returnable packaging thereby reducing the consumption and disposal of fiber board
Developing new elastomers to improve fuel efficiency in transportation sector and energy saving in industrial applications
56th AGM * “Future Vision.....Forward Movement”
Distribution
First comprehensive multiproduct LCA study issued by IISRP in Q4 2014 on ESBR, SSBR, BR and SBS
Versalis green Versalis green tyretyre philosophy: aligned to the philosophy: aligned to the next next generationgeneration
Today Coming soon...
Polymers rangeNew polymer grades Functionalized HMW s-SBR
e-SBR (dry & o.e.)
s-SBR (batch & continuous)
Low Cis BR
Nd High Cis BR
“Safe” low PCA content extensor oils (TDAE, RAE, MES)
Upgrading generations in Nd-BR
New product line Guayule natural rubber Isoprene-Butadiene rubbers (Nd
catalyst based)
New additives for compounds Vegetable oils (extensor & loose) Tackifying resins
Plus…
Self integrated with raw materials
56th AGM * “Future Vision.....Forward Movement”
Bio-fillers
New raw materials Bio-butadiene
Self integrated with raw materials
Experienced Technical Services Teams
Dedicated Research Centers (in house equipments for processing & application tests)
10
Conclusions: 3 tweets for the IISRP Conclusions: 3 tweets for the IISRP 2015 Annual 2015 Annual General MeetingGeneral Meeting
Increasing #consumer awareness makes the difference
Going beyond compliance to untap the potential of #innovation
Join forces on #sustainability to create shared value
56th AGM * “Future Vision.....Forward Movement”
Join forces on #sustainability to create shared value