Polypropylne Expand on Consumer Needs

8/18/2019 Polypropylne Expand on Consumer Needs

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1Copyright @ Petrochemical Business, IRPC Public Company Limited

IRPC’s Polypropylene

Expand On Consumer Needs

February 17, 2015

Mr. Jaturong WorawitsurawatthanaVice President, Petrochemical Business

IRPC Public Company Limited

Prepared by


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Outlne!

Polypropylene "ar#et Outloo#

IRPC Polypropylene

$usness %e&elopment

'ey %r&ers ( It’s

Opportunty


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Outlne!


IRPC Polypropylene

$usness %e&elopment

'ey %r&ers ( It’s

Opportunty


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Prn)ple o* Petro)+em)al "anu*a)turn

“Break it down and re-fabricate at molecular level”

Macromolecule Micro molecule Ultra-large molecule

(Carbon 1~250)

Mixed Hydrocarbon(Saturated)

(Carbon 1~8)

Monomer(Unsaturated)

(Carbon 20K-1M)

Polymer(Saturated)

CoalOilNatural Gas

Methane

Ethylene

PropyleneButenes, -diene

Benzene

Toluene

Xylenes

Polyethylene

Polypropylene

Polyvinylchloride

Polystyrene

Polyester

Polyamide

Polycarbonate

Etc.

Disintegration

Heat, Catalyst

(Cracking,

Reforming)

Reconstitution

Catalyst

(Polymerization)

“To do all of these, investment and technology are the keys”

Bioplastics;PBS, PLA, Etc.

Bio-based feedBiomass


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Polypropylene

Propylene Polypropylene

PropyleneCH3-CH = CH2

Appliances

Food Packaging & Disposables

Automotive

Agricultural and Industrial Packaging

Homo Block copo Random copo


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-orld Propylene %emand s %omnated

by Polypropylene Produ)ton

+26%

Propylene "ar#et ./e 201

3 "llon 4ons

Note: Others means Cumene (phenol and acetone chain), 2-Ethylhexanol, Butanols, Isopropanol, and Other Source : IHS, 2015

Propylene "ar#et ./e 2013

112 "llon 4ons


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-orld Polypropylene .upply ( %emand

Source: IHS, 2015


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Reonal Polypropylene Net 4rade Patterns

NE Asia

SE Asia & Oceania

Remark: (+) Net Export and (-) Net Import

S. America

W. Europe

Africa

C. Europe

N. America

Indian Subc.

Middle East

CIS & Baltics

Source: IHS, 2015 and IRPC Analysis

Asia is Net Import Polypropylene.


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Polypropylene Capa)ty and %emand %re)ton

Source: IHS, 2015

Chinese Plant Expansion

(Cost competitiveness

from CTP MTP Technology)


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IRPC Polypropylene Capa)ty .+are

Source: IHS, Market Survey, Mitsubishi Corporation

YearIRPC Nameplate

CapacityWorld

SoutheastAsia

Thailand

2014 475 KTA

69,123 KTA 5,344 KTA 1,970 KTA

2019 775 KTA

87,320 KTA 5,814 KTA 2,270 KTA


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Polypropylene s t+e arest .+are o*4otal Polymers %emand

Source: IHS Forum, June 2014


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-orld Polypropylene %emand by Reon

Source: IHS, 2015

%AAGR

2014-193% 4% 1% 3% 4% 6% 5% 8% 6% 5%


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"atrx o* Polypropylene Consumpton

Source: IHS, 2015 and IRPC Analysis

"antan

Opportunty


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-orld Polypropylene %emand by 6ppl)aton

Source: IHS, 2015

+27%

"ar#et ./e 2013

75 "llon 4ons

"ar#et ./e 201

53 "llon 4ons


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Polymers play a )rt)al role n all e)onomes

Source: IHS Forum, June 2014


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Situation

E&E, Autopart, Construction,Luxurious goods

Food packaging

EconomicUpturn

EconomicDownturn

E)onom) Impa)t to %emand and Pr)e


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Polymer Pr)e and %emand Cy)le

(2010)

Source: World Outlook of the petrochemical industry by Mitsubishi Corporation, 2011


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Outlne!


IRPC Polypropylene

$usness %e&elopment

'ey %r&ers ( It’s

Opportunty


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LPG

Naphtha

Gasoline

Diesel

Fuel Oil

89

Increasing Crude Run

Variety Properties & FlexibleCrude Type

More Value Added Products

FUEL OIL COMPONENT/

CARBON BLACKFEEDSTOCK

320 KTA

120 KTA

280 KTA

200 KTA*Production Capacity

9alue 6dded Produ)ts *rom 89 Pro:e)t

$440/MT

$407/MT

$912/MT

> $1,050/MT

$42-45/BBL($315-340/MT)

$57/BBL($428/MT)

Petrochemical Business


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IRPC O&erall Pro)ess

1994POWER PLANT

BITUMINUS

FUEL OIL

BUTADIENE

RAFFINATEPYROLYSISGASOLINE

NAPHTHA 199

ETHYLENE!RA!"ER

TRANSPORTATION FUEL# LPG !USTOMER

B$ 199ETHYLBEN$ENESTYRENE MONO

TOLUENE

MI-YLENE

HA &A9#A10'(

A!N

199PS

1992EPS

1990 ABS)!!M

1993SAN

SM

A!N

1990

PP

PROPYLENE

REFINERY PETRO!HEMI!ALDOWNSTREAMINTERMEDIATEUPSTREAM

A!ETYLENE 2003 A!B

R

E F I N E R Y

P L A N T

ADU 165#000 BPD

150#000 BPD ADU 2 Y2000

Y1996

!RUDE OIL

!ONDENSATE

*A!UUM GAS OIL &*GO(

ASPHALT

LUBE BASE OIL

199LUBE BASE OIL

LONG RESIDUE

&AR(

ETHYLENERI!H GAS

199DEEP !ATALYTI!

!RA!"ING

LS ATB

ETHYLENE

ETHYLENE

1986HDPE

REFORMATE 199BEN$ENETOLUENE YLENE


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.+*tn o* Produ)t Port*olo to;ard 9arety andPremum Produ)t ser&n "ea 4rend

Polypropylene Expanson


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Inlne Pro)ess

Compounding

House

IRPC PP Compoundn Pro:e)t

Outlne Pro)ess

Cost .a&n• Packing & Logistic• 2nd Extruder Production

Compounding

House


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Outlne!


IRPC Polypropylene

$usness %e&elopment

'ey %r&ers ( It’s

Opportunty


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9alue Creaton 4+rou+ .upply C+an

Source : PTIT as of 2014


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POPULATIONCLIMATE CHANGE ECONOMIC

GLOBAL FLOW

EDUCATION

DEVELOPMENT & POVERTYSECURITYTECHNOLOGY

NATURAL RESOURCES

HEALTH

>lobal 4rend ? -orld $usness Opportuntes


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Opportuntes *or Polypropylene

Pa)#an ( Prntn

Non;o&ens ( arn

Ele)tron) ( Ele)tr)al

6utomot&e

Compoundn

>lobal produ)ton

>lobal pur)+asn

In&estment s+*t to 6.E6N


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P6C'6>IN>


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Million Baht: 572,372Ktons Volume: 4,679

ThailandTotal Production of Plastic Conversion

Source: PTIT Data, Modified by PITH, 2014

Plastic Packaging

Paper38%

RigidPlastic

21%FlexiblePlastic

13%

Metal16%

Glass

6%

Other6%

Global PackagingConsumption

Source: PIRA International, 2009

Total Plastic 34%

Million Baht: 187,079 (32.7%)Ktons: 2,219 (47.4%)

Pa)#an "ar#et Outloo#


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-orld Rd Plast) Pa)#an Consumptonby "ateral

KTA

Source: Rigid Packaging Solutions by Farmamak, 2013


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Polypropylene n Pa)#an

Bag

PE, PP , PET,PVC, Nylon

Bottle/CapPE, PP , PS, PET,PVC

Container/Closure

PE, PP , PS, SAN,PET, PVC

Box/Pallet/Drum

PE, PP , PET

Sack/Yarn

PP

Cup/Lid

PP , PS

TrayPE, PP , PS, PVC,PET

FilmPE, PP , PVC

Blister/Skin

PE, PVC, Ionomer

Foam

PS, EPS, PP


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Multilayer packaging

Plastic pouches

Flexible packaging

Microwaveable packaging

Frozen / Chilled ready meal

Convenient closures

No Carcinogen in baby bottleand food containers

Pa)#an 'ey %r&ers and 4rends


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NON-O9EN. ( 6RN


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Polypropylene Non;o&ens "ar#et

The Global Nonwovens Market is over $20 Billion by 2011and US$30.61 Billion by 2020

Source: Edison Investment Research and Pira International

Increaseto 40%by 2015

PolyesterRayonWood

PP 30%

Other

70%

Hygiene35%

Industry65%

Industry35%

Hygiene65%


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-orld Non;o&ens %emand

Source: The Freedonia Group

0.0

0.5

1.0

1.5

2.0

2.5

3.03.5

4.0

4.5

NorthAmerica

WesternEurope

Asia Pacific Central &South

America

EasternEurope

Africa/MiddleEast

Millions MT2005 2010 2015F


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-orld;de Non;o&ens Produ)ton

0.0

0.5

1.0

1.5

2.0

2.5

3.0

NAFTA Europe China Other AsiaPacific

Japan MiddleEast

Rest ofWorld

2006 2011 2016FMillions MT

Source: INDA Estimates & Rory Holmes, INDA-CAB Conference 2012 (www.inda.org)


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8+ $rt+ Rate and oner &n %r&e %emand

Source: Mitsubishi Corporation, 2013

Age

Growing Old


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Non;o&ens ( arn 'ey %r&ers and 4rends

PP Nonwoven growth inhygiene market.

Industrial and agriculturalsectors growth in developingcountries.

Consumption increasing inAsia-Pacific, Latin Americanand other emerging markets.

Older traditional productssubstitution and consumerbehavior change


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EEC4RONIC @ EEC4RIC6( 6PPI6NCE.


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39Copyright @ Petrochemical Business, IRPC Public Company Limited Source: Plastics Foresight


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EE ( 6pplan)es "ar#et Outloo#

EE & Appliances

Million Baht: 118,240 (20.7%)Ktons: 739 (15.8%)


Thailand

Total Production of Plastic Conversion


Source: Mitsubishi Cor poration andJournal of Cleaner Production, 2014

Plastics componentaverage weightabout 7 kg/unit

Plastics componentaverage weightabout 8 kg/unit

Plastics componentaverage weight

about 3 kg/unit

EE ( 6 l ' % d 4 d


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EE ( 6pplan)es 'ey %r&ers and 4rends

Functionality

Easy to use – andconnected

Aesthetics and Design

Energy efficiency


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P l l 6 t bl


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Polypropylene n 6utomoble

Source: Association of Plastics Manufacturers in Europe

Bumpers

PP , ABS, PC 10 kg

SeatsPUR, PP , PVC, ABS, PA13 kg

DashboardPP , ABS, PA, PC, PE

15 kg Fuel systems

PE, POM, PA, PP 7 kg

Body (inc. body panels)PP , PPE, UP

6 kg

Under the bonnetcomponentsPA, PP , PBT

9 kg

Interior trimPP , ABS, PET, POM, PVC

20 kg

Electrical componentsPP , PE, PBT, PA, PVC

7 kg

Exterior trimABS, PA, PBT, PA, PVC

4 kg

Lighting

PP , PC, ABS, PMMA, UP 5 kg

UpholsteryPVC, PUR, PP , PE

8 kg

Other reservoirsPP , PE, PA

1 kg

About 105 kg of petrochemical-derived plastics

6 t t " # t O tl #


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6utomot&e "ar#et Outloo#

Vehicles

Million Baht: 81,638 (14.3%)Ktons: 363 (7.7%)


ThailandTotal Production of Plastic Conversion


Source: Mitsubishi Corporation

Automobile

.nA)ant 4ranston n t+e Reon


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.nA)ant 4ranston n t+e Reon

Source: Ernst &Young’s Global Automotive Center

6utomot&e 'ey %r&ers and 4rends


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High growth of automotiveproduction in Asia

Further growth of PP demandin China and Southeast Asia

Low cost / Light weight PPsupports city car production

Developing bio-plastic basedon PP of Japanese car maker

6utomot&e 'ey %r&ers and 4rends


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CO"PON%IN>

-+ere s sed Compounded Plast)sB


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-+ere s sed Compounded Plast)sB

Industries Served:• Construction• Auto• Wire and Cable

• Durables• Consumer Products• Industrial Applications• Aerospace

• Electrical & Electronics• Health Care

Replacing:

• Metals• Wood• Natural Rubber• Expensive Engineered Plastics

Source: TASNEE (Saudi Arabia), 2 nd GPCA, Plastics Summit

Note: TPO, Thermoplastic PolyolefinTPV, Thermoplastic VulcanizatesAdd concentrate ex: Carbon black, Pigment, Masterbatch

PP Cateores .t**ness &s Ot+er Polymers


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PP Cateores .t**ness &sD Ot+er Polymers


>lobal %emand o* Polypropylene Compound


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>lobal %emand o* Polypropylene Compound

Largest sectorwith 55%


"a:or >lobal PP Compound Produ)ers


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"a:or >lobal PP Compound Produ)ers


.trate) Intat&es? Roadmap to .u))ess


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• DELTA Initiative Implementation• Assets Management (Bankai/EIZ)

Para-Xylene(PX)

Acrylic Acid(AA)

• Specialty focus and Movingaway from heavy-assetcompany

• CHP I: Electricity +220MW, Steam +420T/hr• PRP +100KTA of Propylene• EURO IV: Gasoline 15KBD, Diesel 10KBD, Jet 15KBD• TDAE +28KTA, 150BS +25KTA• Lube Blending +60m.Ltrs./year• EBSM +60KTA, ABS/SAN +60KTA

Completed Project during 2011-13

2013 Crude Run 181 KBD Nelson Complexity Index Portfolio of Revenue:

Petroleum/Petrochemical & Others

2

2015: UHV Completion

Crude Run 215 KBD Nelson Complexity Index More stable portfolio of Revenue:

Petroleum/Petrochemical & Others

76% / 24%

59% / 41%6.6

8.684%

100%

1

3

STS 2014:

StrengtheningCore Business

Super AbsorbentPolymer(SAP)

Quick Win Initiatives

New investments through JV

2013

2014

2015

2017

PP Derivatives • PP Expansion 160 KTA

• PP Compounding 140 KTA


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486N' OThe presentation is presented in good faith and is based on current situations and assumptions. Known and

unknown risks, uncertainties and other factors could lead to material differences from this presentation.

We encourage you to have your own consideration when making decision at your own risk.

IRPC Public Company Limited assumes no liability to update or to conform them to future events or developments.

ueston

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Polypropylne Expand on Consumer Needs

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