A
u n i v a t i o n t e c h n o l o g i e s
u n i v a t i o n t e c h n o l o g i e s
u n i v a t i o n t e c h n o l o g i e s
D e l i v e r i n g V a l u e t o t h e P E I n d u s t r y
D e l i v e r i n g V a l u e t o t h e P E I n d u s t r y
A record-breaking year for patents
IP team keeps busy patenting and protecting UT innovations
Page 3
The UNIPOL™PE Process
How it keeps getting better
Page 1
Metallocene PE
Use on the rise worldwide
Page 4
Licensee Activity
Page 7
Summer 2004
D e l i v e r i n g V a l u e t o t h e P E I n d u s t r y
B
In This IssueThe UNIPOL™ PE Process
How it keeps getting better | 1
2003 a record-breaking year for patents
IP team keeps busy patenting and | 3
protecting UT innovations
Metallocene PE
Use on the rise worldwide | 4
Moving beyond customer relationship management
Phil Allen, President, MarketAbility | 5
Licensee Activity
Braskem | 7
JG Summit | 7
PetroChina | 7
Kazanorgsintez | 7
Customer Value Conference at K'04!
Learn how to stay ahead of your competition | 8
Changing the way we deliver value
Organizational changes take major step forward | 9
Meet our new R&D director: You.
Understanding what our customers really want | 11
Your technology is up to date; are your people?
Slate of services provide better | 12
business performance
ndustry reports tell us the plastics industry — one of the largest manufacturing sectors in the world – is emerging from a worldwide recession and seeking new technology and
innovation that can help fuel another expansion. Developing countries such as China, India
and the Czech Republic are experiencing unprecedented positive manufacturing growth while the U.S., England and Western Europe are adding manufacturing capabilities that will make them more competitively attractive as full recov-ery builds.
Leadership in innovation in R&D and modern technology will fuel real growth. It is at this criti-cal growth juncture that Univation is positioned to help its licensees reap the benefits from the improving business environment.
In this issue we focus on success factors that are built into Univation’s technology offering: getting the most from your UNIPOL technology investment, and achieving better business performance with a rich assort-ment of after start-up profitabil-ity enhancements. Univation’s R&D chief talks about deliver-ing technology advancements that are important to you, and we take a look at an astonishing number of new licensees and the impact they’re creating on the global polyethylene stage.
Univation’s senior management invites you to attend our informative Customer Value Conference to be held at K’04 in Düsseldorf. Mark your calendars for October 24 from 07:00 to 08:30 with more details to be announced later this summer. And don’t forget to visit our K’04
exhibit in Hall 8, Stand G12.
Mardee McCown Kaus, Editor 1+ 713-892-3677 [email protected]
Univation Technologies, LLC 5555 San Felipe, Suite 1750 Houston, Texas 77056 U.S.A.
Phone: 1+ 713-892-3700 Fax: 1+ 713-892-3760 www.univation.com
I
© 2004 Univation Technologies, LLC
SUMMER 2004
11
or more than two decades, the UNIPOL PE Process has been recognized as the preeminent method for the manufacture of polyethylene. It is by far
the most widely chosen PE process worldwide and now has close to 1500 reactor-years of proven, safe and successful operation.
Why such longevity? How has it remained so economically and techno-logically attractive? Perhaps the most important reason is that over the years licensees have had access to a constant stream of innovation and services that enables them to get ever-increasing value from their UNIPOL investment. UNIPOL licensees can stay ahead of the technology curve and market demands without straying from this proven and versatile platform.
Today, UNIPOL licensees have a range of options for product, capacity and productivity enhancements.
Univation’s catalyst portfolio provides the broadest product mix in the PE industry. And intelligent retrofit solutions such as Super Condensed Mode tech-nology (SCM-T) and the soon-to-be-commercialized PRODIGY™ bimodal technology enable licensees to cost-effectively extend the life cycle of veteran plants while producing the industry’s most advanced, in-demand PE products.
This combination of proven perfor-mance, versatility and enhancement opportunities is also why the UNIPOL Process remains a leading choice for new-build facilities. There are currently six UNIPOL PE plants under construc-tion around the globe. Compared to any other PE process, the UNIPOL Process offers producers a greater range of quality products at lower cost for both commodity and specialty markets.
Delivering increasing value through UNIPOL technology
Univation makes significant and ongoing investments in R&D aimed at delivering new and better products and improving the economics and operability of UNIPOL PE operations. By delivering innovative technolo-gies to its licensees, enhanced services and broader product choices, Univation keeps UNIPOL technology evergreen and at the forefront of the PE industry.
Broadening product choices
One of the most exciting enhance-ments for Univation licensees has been the development of metallocene catalysts for use specifically in the UNIPOL PE Process. ExxonMobil Chemical
Continued on page 2
After 22 years of operation, the Mt. Belvieu Plastics Plant (MBPP) near Houston, Texas, is a prime example of the ongoing adaptability of the UNIPOL PE platform.
At the time of its construction in 1982, MBPP’s two original reactor lines had a total annual PE capacity of 270 kta. The facility’s resins were based on UCAT™-A cata-lyst technology using butene comonomer and delivered to customers in powder form.
Since then, the plant’s product mix, capac-ity and even product form factor have evolved to meet the changing needs of the market and to take advantage of the latest technology.
Shortly after the plant’s construction, extruders were added to provide customers with pelletized resins. Capabilities to accom-modate hexene comonomer and condensed-
mode operation for capacity expansion were added in the ’80s. Univation metallocene technology was developed and imple-mented at the plant in the ’90s, further expanding the plant’s resin portfolio. MBPP also served as one of the development sites for Super Condensed Mode technology (SCM-T), and it
now routinely operates using this high-capacity process.
With no need for a new reactor line, the plant now offers a state-of-the-art product slate and annual capacity of over 820 kta.
And there’s more to come. The MBPP team continues to push the envelope of SCM-T, developing catalysts and processes that will provide even higher capacity and efficiency down the road.
The
− how it keeps gett ing better
™
F
MT. BELVIEU PLASTICS PLANT – TWO DECADES OLD AND STILL STATE OF THE ART
UNIPOL PE Process
developed the first commercial single-site metallocene catalysts for use in gas –phase in the 1990s, using UNIPOL as the development and commercial platform.
Conversion of existing UNIPOL PE plants to metallocene catalysis is fast and economical and enables producers to dramatically enhance the value of their products in a number of ways (see Metallocene Article) page 4. Global commercial use of metallocenes is growing, and the technology is expected to become the PE industry standard over the next decade.
Today, Univation offers licensees XCAT™ Metallocene Catalysts for production of high-performance resins (HPR) and easy processing (EZP) resins that extend the application range for which polyolefins can be used. UNIPOL licensees can take advantage of this technology with minimal retrofit costs and disruption.
The list of Univation licensees currently using or preparing to use metallocene technology continues to grow:
Those Using Univation’s metallocene technology today
ExxonMobil Chemical Company – US CIPEN – FranceBraskem – BrazilNippon Unicar – JapanTitan Polyethylene – Malaysia
Licensed to produce metallocenes in the future
PEMOSA México (start-up 2005)• Rio Polimeros S.A. – Brazil
(start-up 2005)• KAZANORGSINTEZ S.C.
– Russia (start-up 2006)• Lanzhou – China
(start-up 2006)• J.G. Summit – Philippines
(start-up 2005)
Cost-effective capacity enhancement
Another important develop-ment for UNIPOL technology
has been in the area of capacity expansion. Univation offers a
portfolio of proven hardware and
software technologies that enables licensees to significantly expand capacity of their existing PE reactor lines, often for as little as 50 percent of the cost of new-build capacity.
These technologies include Condensed Mode production and Super Condensed Mode, both of which overcome heat removal barriers to capacity expansion. These easy-retrofit solutions enable licensees to use economies of scale to reduce manufacturing costs and generate fewer incremental emissions vs. new facilities while significantly increasing output.
The next phase – PRODIGY™ Bimodal Technology
Univation’s ground breaking bimodal technology will take UNIPOL tech-nology to the next level of flexibility,
giving our licensees yet another way to exploit a growing market need in a cost-effective manner.
UNIPOL PE technology has long served the HDPE market with several catalyst systems for unimodal resins for pipe, extrusion, blow molding and film. With the introduction of faster fabrication equipment, producers are requiring new resins with bimodal molecular weight distribution.
Univation’s unprecedented PRODIGY technology for producing bimodal HMW-HDPE utilizes a single UNIPOL reactor. That significantly reduces capital costs for new-builds and allows
retrofits to produce bimodal products to
meet growing global demand. This tech-
nology will permit performance equivalent to or
better than currently benchmarked materials produced on multiple reactors – plus capital investment savings for new PE facilities.
Ongoing optimization through products and services
Another way Univation has helped UNIPOL licensees make the most of this proven process is through an expanding array of products and services. Today, our full suite of PREMIER™ Products and Services is aimed at helping licensees improve the value of their PE businesses take advantage of new or existing technology from Univation, and operate in the most productive, efficient
way possible. Services that include operations improvements, product mix enhancements, operations training, and APC+ advanced process control tech-nology enable producers to optimize their UNIPOL technology using the latest practices and strategies. See details on page 12.
For more information on the UNIPOL PE Process, enhancement technologies or services, please contact your Regional Customer Team manager or call us at 1+713-892-3700. Visit our Web site at www.univation.com.
UNIVATION TECHNOLOGIES
2
SUMMER 2004
nivation’s technology patent portfolio is one of its most valuable assets − critical to providing a competitive edge for our customers. From cata-
lysts to processes to products, Univation receives dozens of new patents each year, reflecting the constant stream of innova-tive thinking coming from our R&D staff. In fact, in 2003, Univation was issued an unprecedented 42 new U.S. patents, pri-marily related to metallocene and bimodal technologies.
“Intellectual property is a key part of our business,” says Stephen Koch, Chief Patent Counsel for Univation. “Patents expire after 20 years, and for that reason we must continually work to strengthen our licensing assets. Doing so allows us to maintain a portfolio that our competitors can’t match and assures our customers an operational advantage.”
Just as athletes protect their arms and legs, Univation must guard its pat-ent portfolio, keeping it fresh, relevant
and protected from infringement. Koch sees managing Univation’s patent assets as demanding constant vigilance. His IP group consists of Patent Counsels Kevin Faulkner and Ozzie McKinney, and sup-port staffers Tammy Hodges and Roxana Guajardo. The IP team not only works to continually develop the Univation patent portfolio, but also maintains an up-to-date understanding of competitor portfolios at all times.
Koch and his team were kept busy in 2003. The 42 new patents issued were based on filings that entered the approval process as long as three years ago, a typi-cal turnaround for U.S. patents. Univation has an annual filing target of approximate-ly 18-20 new U.S. patent applications in addition to the diverse array of domestic and international follow-up filings that must be made each year. It’s all part of the process that keeps Univation at the top of the licensing business and delivering value to our customers.
a record-breaking year for patents at Univation
2003 IP team keeps busy
patenting and protecting
UT innovations
Stephen KochChief Patent Counsel
Strengthening our
licensing assets
allows us to maintain
a portfolio that
our competitors can’t
match and assures
our customers an
operational advantage.
U.S. patents issued 42
Invention notices submittedThese notices represent disclosures from our R&D staff that describe new inventions; each must be evaluated for patentability.
50
Applications for new U.S. patents 19
U.S. patent filings related to previous patent applications 38
Applications for new patents under the Patent Cooperation Treaty (PCT) This treaty enables applicants to obtain an early priority date for patent applications in 123 member nations through an initial single registration process before proceeding with filings in each of those nations.
25
International applications in non-PCT countries 15
U
THE 2003 PATENT PIPELINE AT UNIVATION
3
UNIVATION TECHNOLOGIES
4
The metallocene share of global LD and LLDPE consump-tion is projected to grow to between 11 and 22 percent by 2012, consuming between 4,150 and 9,850 kta of new mLLDPE production − the equivalent of 10 to 25 new world-scale UNIPOL™ reactors.
Commercial use of metallocene-catalyzed PE resins is grow-ing around the world, including rapidly growing markets such as South America and Asia. In fact, licensees of Univation’s XCAT™ metallocene technology are now located on virtually every continent.
“Over the next five to ten years, we expect metallocenes to further displace Ziegler-Natta as the preferred technology for producing PE,” says Dirk Van der Sanden, market planner at Univation. “I believe adoption in high-growth markets will be even more rapid than it has been in North America and Western Europe.”
Driving the growth in metallocenes are the attractive eco-nomic benefits and property advantages they offer converters and end-users. With unprecedented toughness, puncture resis-tance, clarity, hot tack and sealing properties, metallocene-cata-lyzed PE moves the industry to a new performance platform, well beyond the reach of other technologies.
MULTIPLE ROADS TO VALUE
XCAT Metallocene Catalysts from Univation are used to produce high- performance (HPR) and easy-processing (EZP) mLLDPE resins that extend the application range for which polyolefins can be used. PE converters and their cus-tomers are constantly looking for poly-mers that allow them to make thinner, better performing or more cost-effective products. Premium polymers made with metallocene catalysts increase revenue potential across the business chain by supporting unit cost reduction in a num-ber of ways.
First, films based on metallocene technology can be downgauged without
any loss of performance. As a result, products such as trash bags can be made thinner and more cost-effective to produce without compromising quality. Metallocenes can also increase the performance and competitiveness of film products of equivalent thickness, resulting in packages with lower leak rates or more packs per minute on an FFS packaging line, for example. Alternatively, converters can choose to maintain both the performance and gauge of their original products, but change the formulation to reduce costs – often by increasing recycled content.
“Another appealing aspect of XCAT technology is that con-version of existing UNIPOL PE plants is fast and economical,” says Catalyst Business Director Kevin Smith. “Metallocene resins run on the same manufacturing film lines as our custom-ers’ current products, without a rate loss. Together, this means licensees and their customers can take advantage of this high-value technology without a significant capital investment.”
UNIVATION IS FIRST IN METALLOCENES
Although metallocene technology is already paying off for many businesses and its growth poten-tial is significant, resin manufacturers want a proven partner to help them enter this market successfully. Univation is unrivaled when it comes to metallocene experience, and our XCAT technology was custom developed specifically for the UNIPOL PE Process.
“Univation has the best and broad-est commercial offering of metallocenes across the density range. Our XCAT products are the most established and proven path to metallocene value,” says Van der Sanden. “Also important to our customers is that we offer much more than technology and catalyst. We also provide product development and market assistance, retrofit support, operator training – everything a licensee needs to enter this growing market with confidence.”
Metallocene PE use on the rise worldwide
Users and licensees of Univation XCAT™ metallocene technology
• ExxonMobil Chemical Company – US
• Cipen – France
• Braskem – Brazil
• Nippon Unicar – Japan
• Titan Polyethylene – Malaysia
• PETROQUÍMICA MORELOS,
S.A. DE C.V. – Mexico
• Rio Polimeros S.A. – Brazil
• KAZANORGSINTEZ S.C. – Russia
• Lanzhou – China
• JG Summit – Philippines
Dirk Van der SandenMarket Planner
5
ustomer Relationship Manage-ment should be viewed as one element of the new, far broader concept referred to as Customer Value Management
(CVM), created as a result of extensive research on the chemical and plastics sector. What is of major concern is what companies need to do in order to create and maintain long-term, viable business and shareholder value. The only way to achieve this is to create sustainable value for chosen target customers, and ensure
that the supplier serves those chosen customers better that any of his competi-tors do. The chemical industry is giving away millions of dollars in failing to understand what customers want and, based on this, failing to deliver value.
The implementation of CVM will achieve this much-sought-after and essen-tial sustainable customer value. The prac-tical, five-step CVM value-delivery model developed by MarketAbility and now featured in a recent book enables the sup-plier to understand the value expectations
Continued on page 6
I n d u s t r y B r i e f sSUMMER 2004
Moving Beyond Customer Relationship ManagementPhil Allen
President, MarketAbility
There has for some time now been
copious debate on the topic of Customer
Relationship Management (CRM), its
benefits, its use or lack thereof. What
is becoming increasingly apparent,
however, is that while CRM does have
a significant role to play, it “no longer
goes far enough,” says Founder and
Chief Executive Officer of MarketAbility
Phil Allen. MarketAbility led Univation’s
Customer Research projects undertaken
in 2002 and 2004 in the quest to
deliver sustainable customer value
to the PE industry.
C
UNIVATION TECHNOLOGIES
6
of target customers, commit to and create that value, and obtain the customer feed-back necessary to measure and improve on that value.
Research conducted by MarketAbility revealed a level of misconception and misunderstanding surrounding the con-cept of CRM. Many respondents only linked CRM with IT systems. It was MarketAbility's intent to examine the issue, the creation of customer value, in its broadest strategic context, and it was therefore decided to shift terminology and focus on the all-encompassing concept of Customer Value Management, or CVM. It is vital that the approach to creating customer value is dynamic and anticipates changes in the needs and value set of the customer.
Customer Value Management is a dynamic model, while most CRM approaches are narrower, more limited and very static. A total of 150 companies in the chemicals and plastics sector were examined and revealed that while 65 percent of the companies claimed to be customer focused, only 10 percent really practice customer focus.
CVM is defined as ‘the business marketing process enabling supplier and customer to create sustainable value and profitable growth through a planned and systematic exploitation of mutually beneficial opportunities’. As opposed to offering the lowest price, it is actually value — the complete package of attri-butes that your product entails and how they combine to satisfy customer needs — that is the critical cornerstone to turn
‘window shoppers’ and one-time purchas-ers into loyal, lifelong customers.
CVM starts with an understanding of customers, their needs and what they value, in other words what they are pre-pared to pay for. It then moves to develop a response to the discovered customer value set, this being a distinctive, differ-entiated and sustainable offering, which delivers value to the customer over and above what competitors are offering.
Step three is the implementation of the customer commitment. It is at this stage that many companies start with their CRM. In the following step the company obtains feedback from customers on how well it has met their needs and what should be improved. This is a precur-sor to step five, which entails working
on improvements to customer value, and anticipating changes in customer needs to stay ahead of the competition and ensure repeat business.
Based on the research findings, MarketAbility suggests various practi-cal actions companies should implement for each of the five steps, to achieve best practice.
STEP 1: Understand the customer - Define and map the market - Understand customer needs - Discover segments - Assess the competitive position - Select target segments
STEP 2: Commit to the customer For each target segment: - Define a strategy
- Develop superior differentiated offerings - Identify and fill capability gaps - Define Key Performance Areas
and measure them- Communicate customer commitment
STEP 3: Create customer value - Develop customer culture - Define customer value processes - Define and develop people - Invest in Customer Value Infrastructure - Capture Customer Value
STEP 4: Obtain customer feedback - Track won and lost customer business - Proactively seek customer feedback - Manage and resolve customer
queries and complaints- Regularly and independently
assess customer satisfaction- Integrate analyses to improve
customer value
STEP 5: Improve customer value - Measure results - Challenge customer understanding - Redefine customer commitment - Improve customer value - Anticipate change
MarketAbility also recommends and supports key marketing and CVM con-cepts, tools and methods that can help companies to achieve success at each stage of the CVM model.
The message is simple. To ensure your organization’s success, you must ensure your customers’ success first. Current performance in the chemical and plastic industries suggests that companies find it challenging to achieve that success. The industry leaders of tomorrow are those that today align their people, processes and capital with the value expectations of their customers to create and deliver vital, sustainable customer value.
Visit MarketAbility at www.marketabil-ity.org. Phil Allen can be reached at [email protected] in Zurich; +41 1 783 8777. Editor’s Note: The referenced book is titled Value-Based Marketing for Bottom-Line Success: 5 Steps to creating Customer Value, De Bonis, Balinski and Allen, published by McGraw Hill, December 2003; ISBN: 0-07-139656-X.
“To ensure your
success you
must ensure
your customers’
success first.”
L i c e n s e e Ac t i v i t ySUMMER 2004
JG Summit completes final PRODIGY™ Bimodal run, signs XCAT license
Under its commercialization agreement with Univation, JG Summit Petrochemical recently completed its third produc-tion run using PRODIGY bimodal technology at its plant at Barangay Simlong in the Philippines. The run took place in early May, met all the company’s goals, and paves the way for JG Summit to begin commercial production of its bimodal product. Univation and JG Summit are now progressing toward a full commercial license.
Until now, demand for bimodal resins in the Philippines was met by imports; JG Summit wanted to meet this need locally and at local prices, and PRODIGY technology provided a cost-effective solution.
In December, JG Summit also signed a license agreement to produce XCAT metallocene-based resins with the goal of offering higher-value PE products to its market. The retrofit is currently in the planning process.
Kazanorgsintez adds product capability using Univation’s capacity expansion technology
Univation and Kazanorgsintez, the largest HDPE and PE 80 pipe producer in Russia, have signed an agree-ment enabling Kazanorgsintez to triple the capacity of two of its three UNIPOL PE reactors and add new PE products to its manufacturing capabilities. Under the terms of the license, Kazanorgsintez also has rights to Univation’s newest bimodal HDPE film, PE-100 pipe technologies and a complete spectrum of polyethylene products, including HDPE, LLDPE and metallocene. Plant completion is expected in 2006.
PetroChina receives Univation PE licenses for two PRC affiliates
Affiliates of PetroChina, the largest integrated oil and gas producer in China, have signed license agreements to use the UNIPOL PE Process for new full-density PE plants in Lanzhou and Daqing, People’s Republic of China. Each line will have a nominal capacity in excess of 250,000 tons per year. The facility in Lanzhou is licensed to manufacture metallocene-catalyzed polyeth-ylene, representing the first such license in China. Both new plants will use Univation’s advanced process control (APC+) to enhance performance, maximize production and maintain aim-grade consistency. These licenses bring the total number of UNIPOL PE reactors in China to eleven, establishing UNIPOL PE as the most widely practiced PE technology in China.
Braskem brings metallocenes to Latin America
Brazil’s Braskem, a leader in thermoplastics in Latin America and a UNIPOL™ PE Process licensee since the ’90s, signed license agree-ments in 4Q 2003 for the production of XCAT™ metallocene technology-based LLDPE and VLDPE. Test runs of the company’s VLDPE product were successful just two weeks after the provisional licenses were signed, and samples were made available to Braskem customers for trial and performance testing. Braskem is the first company to produce metallocene-based resins in Latin America. Its metallocene products enhance the company’s differentiation in its market and enable the com-pany to meet the increasingly sophisticated, high-performance demands of its packaging customers.
7
UNIVATION TECHNOLOGIES
nivation’s licensees are cordially invited to attend the Customer Value Conference to be held Sunday, 24 October 2004 in conjunction with K’04 in Düsseldorf, Germany.
Ensure Your Position in the Future of PolyethylenePolyethylene producers around the world are positioning
themselves to compete in a new business environment where technology will generate business opportunities for the PE indus-try. In a competitive marketplace, Univation Technologies can provide you the proven production technology, capacity expan-sion opportunities and innovative catalyst systems you will need to stay ahead of your competition. Now is the time to align your-self with today’s and, most important, tomorrow’s technology vanguard, Univation Technologies.
Univation’s senior managers will speak on staying ahead of competition in the emerging market upswing:
John Verity, President Profitability in the PE Business: Be prepared for the coming industry revival with market knowledge, optimum operations and technology advances to keep you ahead of competition.
Paul Moyer, Commercial Vice President• Growth in PE industry – new capacity needed,
amount, location • Types of PE needed and key growth areas –
PE type and geographic region • UNIPOL capability to meet the market needs • Univation’s commitment to single-reactor process
using engineered catalysts • Strengthening your product capability with
PRODIGY Bimodal Catalysts
Kevin Smith, Director, Catalyst Business• World’s leading PE catalyst supplier
– Breadth of offerings, includes catalyst for other processes
• World-class facilities for volume catalysts, continuous improvement for established catalyst systems
• Development facilities (smaller scale and supplier relationships) and continued technology development for new catalysts
• Newest addition is PRODIGY™ engineered catalyst for a single UNIPOL™ reactor, bHD film
• Opening the door for development of other revolutionary catalyst systems for: PE-100 pipe, bHD blow molding, BOCD for LLDPE
Clark Brumbaugh, Director, Licensing and Products & Services • Well-established service program to enable licensees to take
advantage of Univation’s technology • Standard components of a typical new build license• Also applies to retrofits (along with other special attention)
– examples of recent successes• Application of service program for PRODIGY technology,
now ready for licensees • Continuous upgrading of products with new technology • APC+, UVP, other training services
Through an unmatched breadth of capability, experience and commitment, Univation delivers value to customers in the form of added business capabilities, improved product lines, expanded market share and opportunities in new markets.
Plan to attend this informative meeting. Learn how
to improve the bottom line of your PE business. More information will be com-ing to you very soon.
M A R K Y O U R C A L E N D A R S N O W !
Customer Value Conference at K’04!HOW TO IMPROVE YOUR BUSINESS POTENTIAL
Düsseldor f , Germany • Hall Eight Foyer • 07:0 0 to 0 8:3 0
8
U
2004
Sunday, October 24, 2 0 0 4
SUMMER 2004
9
nivation’s recently announced organizational change was a major step forward on the journey to move closer to the customer and thus enhance the
company’s and its licensees’ tremendous potential for success. Rather than focus on modest improvements, the organiza-tional-reengineering, led by senior manag-ers Clark Brumbaugh and Kevin Smith, focused on making major structural changes to how we serve our customers.
We will help our customer succeed by:• Leveraging multilevel / multifunctional
relationships with our customers• Improving our understanding of
customer needs• Developing our products to add
value to our customers’ businesses• Improving our understanding of
regional market dynamics
The goal was, and continues to be, to substantially improve opportunities for both Univation and its licensees through efficiency in delivering customer satisfac-tion. The new Regional Customer Team structure is the result of the re-engineered organization designed to approach the customer more thoroughly and efficiently.
The expected upturn in the PE mar-ketplace is right around the corner. In order to be ready to handle the emerging upswing, it was necessary to seek a closer relationship with the customer to create and maintain long-term, viable business opportunities and deliver licensee value. In so doing, Univation sought the opti-mum organizational design to best serve our customers.
Complexity of the sales approach was recognized as a barrier to achieving our full business potential. Now, focusing a core team of experts on one area of the
globe allows the Regional Customer Teams (RCT) to gain an in-depth understanding of customer needs and the competitive challenges they face in their respective geographies. We can increase licensees' business performance by improving the effectiveness of cus-tomer teams. Univation believes that our success will be measured by customer satisfaction and improved profitability for both parties.
The metamorphosis of Univation’s sales structure into four Regional Customer Teams is critical to deepening customer relationships, delivering what they need and capturing emerging busi-ness opportunities. Univation’s manage-ment is utilizing this structure to clarify roles and responsibilities, improve the effectiveness of customer teams and as a result, improve customer satisfaction.
Changing the Way We Deliver Value
U
ChinaRCD: Peter Ferenz
ChinaCM: Victor ChiangCM: Feng YuCIS: Charles PrechtML: TBNEL: Kevin CastoPTL: HT Liu
Asia CM: Pete HerzogCIS: Joe AlexandroML: Rich StolzEL: Kellie TilstonPTL: CT Lue
Europe/FSU
RCD: Felix JacobsonCM: Peter VahaCM: Kirill TrofimovCIS: D’chelle MillerML: Milan RihaEL: Joe MathernePTL: Steve Jaker
MEAF/Central Asia
RCM: Tayfun AltugCIS: Joe LewisML: John KauffmanEL: Paul KinnebergPTL: Rakesh Kumar
Key
CM: Commercial ManagerEL: Engineering LeaderML: Manufacturing LeaderPTL: Product Technology LeaderCIS: Customer Interface SpecialistRCD/M: Regional Commercial Director/Manager
Americas
RCM: David SimonCIS: Sharon MaloneML: Bill MathewsEL: Paul FontenotPTL: Chris Davey
Regional Customer Teams Help Capture Business Opportunities
Paul MoyerVice President
Commercial
UNIVATION WELCOMES PAUL MOYER, NEW COMMERCIAL VICE PRESIDENT
Paul Moyer joined Dow in 1986 as a sales representa-tive and was named
Market Development Manager in the Construction Materials Group in 1989. He was named Product Market Manager for the architectural market in Construction Materials in 1990. In 1991, he was named North American Product Manager for STYROFOAM™ brand products, LDPE Product Manager for the Polyolefin & Elastomers Group in 1993 and North American Solution Polyethylene Product Manager a year later. In 1997, Paul assumed the role of North American Solution Polyethylene and INSITE™ Value Center Manager for the Polyethylene Business. Paul was named Commercial Director for New Business Development for Fabricated Products in 2000 and assumed additional responsibilities as the Global Business Director for Performance Foams in 2001.
He holds a bachelor’s degree in mar-keting from Michigan State University.
UNIVATION TECHNOLOGIES
Felix JacobsonRegional Commercial Director
D’chelle MillerCustomer Interface Specialist
Peter VahaRegional Commercial Manager
Krill TrofimovCommerical Manager
Tayfun AltugRegional Commercial Manager
John KauffmanManufacturing Leader
Paul KinnebergEngineering Leader
Joe LewisCustomer Interface Specialist
MEET THE REGIONAL COMMERCIAL TEAM MEMBERS
Peter HerzogRegional Commercial Manager
Joe AlexandroCustomer Interface Specialist
C.T. LueProduct Technology Leader
Kelli TilstonEngineering Leader
Victor ChiangRegional Commercial Manager
H.T. LiuProduct Technology Leader
Charles PrechtCustomer Interface Specialist
Kevin CastoEngineering Leader
Peter FerenzRegional Commercial Director
Yu FengRegional Commercial Manager
Rich StoltzManufacturing [email protected]
David SimonRegional Commercial Manager
Sharon Leath-MaloneCustomer-Interface [email protected]
Bill MatthewsManufacturing Leader
Chris DaveyProduct Technology Leader
Paul FontenotManufacturing Leader
AMERICASMIDDLE EAST, AFRICA
& CENTRAL ASIA
EUROPE & FORMER
SOVIET UNIONCHINA ASIA
10
Milan RihaManufacturing [email protected]
Steve JakerProduct Technology Leader
Joe MatherneEngineering Leader
Rakesh KumarProduct Technology Leader
hen it comes to research and development at
Univation, the possibili-ties are virtually endless.
Our researchers continually conceive of new and improved products and tech-nologies − but we can’t pursue them all. So how can we determine which innova-tions will be of real value to our custom-ers? How do we best align developmental efforts with market needs? By listening. And we’ll be doing even more of that over the coming year, looking to our cus-tomers − and their customers − for input on the next generation of PE technology.
“Univation is committed to developing new links within the industry and further down the supply chain to get a better understanding of what our customers really want from us,” says Greg Stakem, vice president of R&D. “Licensors of production technology must work to get to the needs of customers further down the chain who benefit from our technology. There aren’t always natural linkages.”
This renewed commit-ment stems in part from the results of a planning workshop held in January. For two weeks, members of Univation’s R&D, engineer- ing and commercial teams,
alongside representatives of our parent resin busi-nesses, met to brainstorm new product ideas and priorities. The ideas were tested with several members of the converter and conver-sion equipment communities who joined the group for a day.
One of the most significant revelations arising from the workshop was the need for Univation to get a better understand-ing of the demands of our customers’ customers − the converters and fabrica-tors who purchase the resins our tech-nologies produce.
A number of exciting concepts emerged from the workshop, and Univation will be testing them out with customers over the coming weeks and months. We’ll also be harvesting cus-
tomer input and viewpoints in new ways.
First, Product Technology Leaders (PLTs) will be look-ing to customers for more information on their local markets, imminent needs and where they see their busi-nesses heading over the next five to 10 years. The PTLs will also be engaging our customers’ customers in dis-cussions, looking for ways to make our licenses most competitive in the coming
years. “Until now, PTL interaction with
customers has focused on technical services and
troubleshooting. Now these meetings will become more proactive and forward-looking,” adds Stakem.
The next Univation customer survey, scheduled for completion in October, will also change somewhat this year. Previously, it focused mainly on custom-er satisfaction, but now we’ll be asking more questions about how we can help customers meet future business goals.
In addition, Univation is working on an “open innovation” model for the future R&D organization. “Innovation can’t just come from inside our com-pany – we have to collaborate with other institutions and pool our resources to stay at the cutting edge of our industry,” says Stakem. “We’re looking for ways to leverage our experience with develop-ment partners and research institutions to further bolster our knowledge-gather-ing efforts.”
More than ever, your Univation team will be asking questions and listening to what you want to see next from our R&D team.
So think of us as an extension of your own R&D organization, and let us hear from you by contacting your PTL or customer team leader.
Meet our new R&D director: You.
11
SUMMER 2004
Greg Stakem
Vice President, R&D
12
Clark BrumbaughDirector, Licensing and
Products & Services
Even the most advanced UNIPOL™ PE technology is only as good as the opera-tors and engineers behind it.
And in the end, they’re only as good as their training.
Providing operations personnel with the tools they need to get the most of the UNIPOL PE process, adapt to new technologies and efficiently overcome technical challenges is one of the most important enablers for productivity and profitability. But it isn’t always simple. Ongoing changes like technological advances, staff turnover and even market fluctuations make training a constant con-cern. That’s a key reason why Univation offers licensees a complete training pack-age through our PREMIER™ Operations Training services.
Univation has trained more than 1500 individuals in all aspects of the UNIPOL PE process. Our Operations Training services provide licensees with targeted, on-demand training that translates into improved business performance. For new licensees, these training programs opti-mize performance in the early months of operation. And for experienced licens-ees, they enable personnel and plants to exploit the latest best practices.
Our training services aren’t just for new plants or new hires. Our modules are designed to help licensees overcome a host of technical and operational chal-lenges. We help licensees resolve specific operational, performance or maintenance problems; implement new technology; address high shift-to-shift variability; even improve interfunctional communica-tion. If it has an impact on plant perfor-mance, we can teach licensees how to make it better.
A complete, realistic plant experience
The UNIPOL Virtual Plant Simulator (UVP) is one of the most powerful tools
in the PREMIER training arsenal. It exposes operators and engineers to real-time, real-world plant behavior without disrupting operations. The UVP mod-els a complete UNIPOL PE plant from reaction feeds to the pellet dryer outlet, including standard equipment, controls, and process and safety logic. It simulates the full range of operations, including
plant start-up and shutdown, steady state operations, and product transitions-within and between catalyst families.
The UVP simulator is a key compo-nent of Univation’s training service. An option available to our customers is to license the UVP technology and maintain their own training staff and programs. The trade-off is continuous in-house training conducted by the customer’s staff vs. on-demand training provided by Univation using our tools and personnel. Either way, the customer benefits from improved operating performance.
Our Operations
Training services
provide licensees
with targeted,
on-demand training
that translates into
improved business
performance.
Your TECHNOLOGY is up to date; are your people?
UNIVATION TECHNOLOGIES
With the UVP, plant personnel get hands-on familiarity with all aspects of plant behavior, including abnormal situ-ations due to plant upsets or equipment malfunctions. The UVP can also be used to recreate incidents, develop improved procedures and provide the basis for con-trol system analysis.
New insight at Sasol and Atofina
Feedback from two recent licensee training sessions shows just how valu-able the services can be. Robin Tinkey, who performs troubleshooting, operations assistance and training for Univation licensees, was part of the training teams for personnel from Sasol and Atofina. The Sasol training took place in Houston, using Univation’s fixed-base UVP. The Atofina training took place in France, using a portable UVP.
“At Sasol, the training was quite a revelation for the engineers involved,” says Tinkey. “They felt it gave them new perspectives on what operators go through day-to-day — the decisions they have to make and the many things that are going on at once in the plant environment.”
The Atofina trainee group comprised both operators and engineers. “Atofina’s operators remarked upon how realistic the simulation was,” adds Tinkey. “They especially liked being able to stop a pro-cess when a problem occurred, examine the options available, evaluate what they could be doing differently, and discuss dif-ferent outcomes. Then we could start the process over and see the results. We pack a lot of information into the five-day train-ing, and participants often wish it was longer.”
“When things
start to go wrong
mid-process, the
simulator lets you
stop, take a step
back and analyze
what you need to
do − something you
can’t do in a plant
environment.”
Robin Tinkey
UNIPOL Training Specialist
For more information on
PREMIER Operations Training
and other products and
services, contact a member of
your Regional Customer Team.
PREMIER Standard Operations Training Classes
• New Technology Implementation
• UNIPOL Unit Operations Overview/Laboratory Overview
• Simulator-Based UNIPOL Unit Operations Overview
• Process Operations for Maintenance/Laboratory/EHS functions
• Outside Operations Training
• Targeted Training
• Advanced Standard or Custom Training
• Just-In-Time Training for New Builds
Standard Modules
• Reactor Operation, Optimization and Control
• Reactor Transitions (any combination required)
• Advanced Catalyst - UCAT™-J Operation
• Advanced Catalyst – Metallocene High-Performance Operation
• Advanced Catalyst – Metallocene Easy-Processing Operation
• Advanced Catalyst - Bimodal Operation
• Fluidization and Continuity Overview
• Process Overview (including reaction through pelleting and maintenance)
• Dry Catalyst Feeder Operation and Maintenance
• Laboratory Overview
• Process Chemistry Overview
• Process Overview for Maintenance, Control Systems and Other functions
• Outside Operations - Expectations and Requirements
SUMMER 2004
13
Printed in U.S.A.©08-04 1000
UNIVATION TECHNOLOGIESPlease send address changes to attention: Mardee McCown Kaus at the address shown below.
Delivering Value to the PE Industry
5555 San Felipe, Suite 1950Houston, Texas 77056 USA
