SABIC Innovative Plastics: Building Customer Relationships @
Colonial - Media Tech – 2011 Joe Miller Las Vegas
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SABIC Innovative Plastics
SABIC Innovative Plastics is a leading, global supplier of
engineering thermoplastics with a 75-year history of breakthrough
solutions that solve its customers’ most pressing challenges.
Today, SABIC Innovative Plastics is a multi-billion-dollar company with
operations in more than 35 countries and over 9,000 employees
worldwide.
The company continues to lead the plastics industry with customer
collaboration and continued investments in new polymer technologies,
global application development, process technologies, and
environmentally responsible solutions that serve diverse markets such
as automotive, electronics, building & construction, transportation, and
healthcare.
The company’s extensive product portfolio includes thermoplastic
resins, coatings, specialty compounds, film, and sheet.
SABIC Innovative Plastics (www.sabic-ip.com) is a wholly owned
subsidiary of Saudi Basic Industries Corporation (SABIC), one of the
world’s top six petrochemicals manufacturers.
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Our heritage of innovation has changed the thermoplastics industry and the world
• We have been manufacturing plastics since 1935
• Our company created:
– Polycarbonate (Lexan* resin) in 1953
– PPO (Noryl* resin) in 1961
– Polyetherimide (Ultem* resin) in 1985
– Amorphous thermoplastic polyimide (Extem* resin) in 2006
• Since 1950, we have over 5,000 patents issued and in force
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Today SABIC Innovative Plastics is
$100+ Million ‘09 investment in innovation
104 locations in 35+ countries 9,000+
employees
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Sharing Our Futures
SABIC is an industry leader • One of the largest producers of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers
• 2009 sales revenue - $27 billion
• 2009 net profit - $2.4 billion
• A global resource
– SABIC operates in 40+ countries
– 19 world-scale complexes in Saudi Arabia
– SABIC manufactures on a global scale in the Americas, Europe and Asia Pacific
– 6 dedicated Technology & Innovation Centers in Saudi Arabia, Europe, the USA and India
– 33,000 employees
A Path of Commitment and Growth
Committed to the SABIC Innovative Plastics business, global operations and talented employees
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SABIC Innovative Plastics in the engineering thermoplastics industry
Polystyrene Polyvinyl chloride
Lexan* (PC) Noryl* (PPO)
Cycoloy* (PC/ABS) Geloy* (ASA)
Cycolac* (ABS)
Xenoy* (PBT/PC) Valox* (PBT)
Nylon
PEEK LCP HTN
PI PPSU
Extem* (PI) Ultem* (PEI)
Engineering polymers and blends
Bulk polymers
High performance polymers
Family
Polyethylene Polypropylene
Perfo
rm
an
ce
Clarity, colorability, impact strength
Chemical resistance, flow, electrical properties
Amorphous Crystalline
Pric
e
High
Low
* Trademark of SABIC Innovative Plastics IP BV
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Lexan* resins
Clarity, superior flow-heat-impact balance, & dimensional stability
Specialty Film & Sheet Lexan* PC film/sheet, Illuminex* film, Ultem* film/sheet, Thermoclear*sheet
Noryl* resins Dimensional stability & electrical performance
Crystalline performance polymers Xenoy*, Valox* and Xylex* resins
Chemical resistance & excellent impact performance. Environmentally sustainable grades
High performance polymers Ultem* and Extem* resins
Superior heat resistance & mechanical strength
Cycolac* and Geloy* resins Visualfx* resins, medium impact & weatherability performance
LNP* compounds Thermocomp*, Lubricomp*, Lubriloy*, Stat-Kon*,
Faradex*, Verton*, Starflam* compounds
A broad portfolio of differentiated products
Specialty performance through compounding
High performance films & high impact sheet
Our competitive advantages
Cycoloy* resins Optimum flow-heat-impact-stiffness balance, & dimensional stability
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Today’s advanced new materials
Offering customers a competitive advantage
Lexan* copolymers
EXL* DMX* SLX*, FST*, XHT*, HFD* resins
Lexan* GLX resins for
Exatec* glazing systems
Valox* iQ and Xenoy* iQ copolymers
Ultem* fibers
Valox* resin non-brominated FR compound
Extem* resin
Glass replacement and design freedom
New dimensions to polycarbonate resins: extreme heat, ductility, flow, weathering, scratch resistance & more
Environmentally sustainable virgin polymer from recycled material
High heat and low smoke fabrics
Extreme high heat
VO performance
Excellent mechanical properties
Cycoloy* resin blends
Innovations in optimum flow, heat, impact, stiffness, balance, & thin wall flame resistance
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Today’s advanced new materials
Noryl* PPO* oligomers
Flexible Noryl* wire coating
Geloy XTW* grades
LNP* compounds
Ultem* film
Lexan* Constant Clear* film
Our competitive advantages
Improved dielectrics, heat and ductility in epoxy systems
Non-brominated material and weight reduction
Extreme weatherability
Specialty materials that bring: - Functional value to our customers - Purchasing preference to consumers - In products that require shielding, wear resistance, electrical insulation, structural performance, and more.
High heat film for electronic applications
Prevents condensation and fogging to deliver energy savings for freezer display case doors
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Shanghai China
Computing Devices Notebooks Wire Film-IMD
SungNam Korea
Televisions Cell phones
Moka Japan
High performance electronics (gears, optical lens) Automotive wire
Pittsfield USA
Composites Transportation Healthcare Steering wheels Seat heating Functional films
Bergen op Zoom The Netherlands
New energy Fluid engineering Body panels Glazing
• Assembly processes • Painting & decoration • Part testing & end-use simulation • Risk mitigation • Regulatory standards
Application performance
• Injection molding • Non-injection molding
processes • Productivity improvements
Process development
• Computer-aided engineering • Computer-aided design • Process simulation
Predictive engineering
State-of-the-art design, processing & performance testing
Automotive Consumer B&C Signage
Global Application Technology
Riyadh Saudi Arabia
• Complete application teardowns • Concept designs • Color services • Prototype development
Aesthetics & Industrial Design
Resource alignments
Capabilities
Lasting partnerships for growth
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Manufacturing and development
Global & Local
48 sales offices 38 manufacturing & compounding sites 6 application development centers
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• 260 K Tons per annum • 4 trains , 2 OQ capable • Asahi technology
• PC start up in Mar’11
• Full scale up by Nov’11
Mechanical Construction
Cumene Phenol BPA PC
Dec 5 Feb, 2011 July 1 Mar, 2011 Aug 14
Saudi Kayan PC Plant
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SABIC PC Portfolio
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Comments
• Only GP, Extrusion & OQ
products in portfolio.
• No FR portfolio
• No FDA
• SK will manufacture
complete portfolio over time
• SIP decides NPI
prioritization
SABIC® PC
MFR
Target
Available
at StartUp GP R UV
LEXAN® PC
Offset
PC4800 7.3* Yes • OQ1023
PC2200 22 Yes •
PC2200R 22 TBD •
PC2203R 22 TBD • •
PC1800 18 Yes • 121
PC1800R 18 Yes • 121R
PC1803R 18 Yes • • 123R
PC1500 15 Yes •
PC1000 10 Yes • 141
PC1000R 10 Yes • 141R
PC1003R 10 June • •143R
(143)
PC0800 8 Yes •
PC0700 7 October •101
(101R)
PC0703 7 October • 103
PC0703R 7 October • • 103R
Portfolio covers GP, Extrusion & OQ Products
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Low Cost Blends
Opportunity
Low cost blends as cost-out option for PC resin
with marginal loss in other properties
Explore design space which shows minimum
loss of value added properties of PC
Establish if any additional value proposition (eg
low birefringence / development of diffusive
grades)
Extend the use of developed material into
other blends
Resin Blends/Compounding
Polycarbonate
(PC)
Polystyrene
(PS)
Polypropylene
(PP)
Polyethylene
Terephthalate (PET)
(PC/PS)
(PC/PP)
(PC/PET)
Application: Rear Combination Lamp Material: PMMA
Application: Refrigerator crisper drawer Material: PC, CPS, SAN
Application: P.O.S Display Material: SBC, PMMA
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Engineering Thermoplastics forecasted to grow…
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Forecast
Source: CMAI
3-8% CAGR
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Consumer electronics grows with new names…
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• Growth in mobile computing
• Emergence of Asian brands
• Opportunities for ETPs
• Convergence
• Weight
• Cosmetics
Today Future
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Margin squeeze
Oil Producers
Retail Chem. Raws
Plastics Mfg
Media Mfgs
OEMs
1. Margin squeeze continues
2. Mfg Base remains relatively flat in US/Western Europe
Realities:
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Feedstock volatility and shortages
• Oil continue to go up
• Shift to light cracking
reduces feedstock
availability
• Reduced benzene
production due to gasoline
usage, bio-fuels
• Demand in China pulling
volumes from US/Europe
Source: Internal SABIC data
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18 month change +23%(PC)
+30%(N6,6)
+39%(N6) +63%(ABS)
Market Prices
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Raw Material Prices
* cents/lb or cents/gal per CMAI http://www.cmaiglobal.com
2011 CHANGE
+17%
+17%
+15%
+30% +34%
*Mar Benzene Price $4.30/Gal
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Raw Material Prices
* cents/lb or cents/gal per CMAI http://www.cmaiglobal.com
6 – Month Trend
+29%
+21%
+27%
+44%
+43%
Natural Gas: +21% Crude Oil: +19%
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Transportation Costs
90.00
95.00
100.00
105.00
110.00
115.00
120.00
Ind
ex
Ceridian Trucking Fuel Use IndexSeasonally Adjusted
90.0
95.0
100.0
105.0
110.0
115.0
120.0
Transportation Cost IndexesUS PPI from Bureau of Labor Statistics
Normalized Jan 2008 = 100.0
TL
LTL
IM
Rail
Specialized
Air
Domestic Courier
Int'l Courier
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Metals Markets
Hot Rolled Steel (NYMEX)
Aluminum Alloy (London Metals Exchange)
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THANK YOU FOR THE BUSINESS
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Price Increase Details
* Trademark of Sabic Innovative Plastics IP BV
Effective Date April 2011
The costs of many of our key raw materials, energy, and transportation have continued to increase adding to an already record level cost environment. This situation makes it necessary for SABIC Innovative Plastics to increase prices on certain products by the amounts listed below:
Lexan*, Cycoloy*, Valox*, Xenoy*, and Xylex* resins $0.48/kg/$0.22/lb/€0.35/kg
Noryl*, Noryl GTX* resins $0.25/kg/$0.11/lb/€0.18/kg
LNP* compounds containing PTFE and carbon fiber fillers $0.80/kg/$0.36/lb/€0.58/kg
All other LNP* compounds $0.40/kg/$0.18/lb/€0.29/kg
Ultem* resins $0.50/kg/$0.23/lb/€0.36/kg
Cycolac* and Geloy* resins $0.28/kg/$0.13/lb/€0.20/kg
These increases will be effective for all shipments made on or after April 4, 2011
and are in addition to all previously announced price increases. Please adjust your purchase orders to reflect this new pricing.
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Media Notes in Industry magazines
•In the entertainment industry physical disc sales continue to decline while revenue generating digital delviery of all types in not growing as hoped
•The Blu-ray format had a banner year in 2010 although both CD and DVD production dropped.
•DEG release in 4Q 2010 reported consumer spending for the the first 3 quarters of 2010 said " Consumer purchases of Blu-ray discs reached $1 billion by 9/30/2010 - an 80% increase over the first 3 quarters of 2009
•Despite growth of digital delivery with the widespread accessibility of high speed internet reports show that packaged media is still the primary format for consumers
•Expectations are that as the recession ends that there will be overall growth of consumer transactions in home entertainment products moving forward
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THE MATERIALS, PRODUCTS AND SERVICES OF SABIC INNOVATIVE PLASTICS HOLDING BV, ITS SUBSIDIARIES AND AFFILIATES (“SELLER”), ARE SOLD SUBJECT TO SELLER’S STANDARD CONDITIONS OF SALE, WHICH CAN BE FOUND AT http://www.sabic-ip.com . AND ARE AVAILABLE UPON REQUEST. ALTHOUGH ANY INFORMATION OR RECOMMENDATION CONTAINED HEREIN IS GIVEN IN GOOD FAITH, SELLER MAKES NO WARRANTY OR GUARANTEE, EXPRESS OR IMPLIED, (i) THAT THE RESULTS DESCRIBED HEREIN WILL BE OBTAINED UNDER END-USE CONDITIONS, OR (ii) AS TO THE EFFECTIVENESS OR SAFETY OF ANY DESIGN INCORPORATING SELLER’S PRODUCTS, SERVICES OR RECOMMENDATIONS. EXCEPT AS PROVIDED IN SELLER’S STANDARD CONDITIONS OF SALE, SELLER SHALL NOT BE RESPONSIBLE FOR ANY LOSS RESULTING FROM ANY USE OF ITS PRODUCTS OR SERVICES DESCRIBED HEREIN. Each user is responsible for making its own determination as to the suitability of Seller’s products, services or recommendations for the user’s particular use through appropriate end-use testing and analysis. Nothing in any document or oral statement shall be deemed to alter or waive any provision of Seller’s Standard Conditions of Sale or this Disclaimer, unless it is specifically agreed to in a writing signed by Seller. No statement by Seller concerning a possible use of any product, service or design is intended, or should be construed, to grant any license under any patent or other intellectual property right of Seller or as a recommendation for the use of such product, service or design in a manner that infringes any patent or other intellectual property right.
SABIC Innovative Plastics is a trademark of Sabic Europe Holdings BV
* Trademark of SABIC Innovative Plastics IP BV
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A strong pipeline of new technology for the future
Beyond injection molding • High performance foams • Fibers • Composites
Functional color platform • Forensic disc authentication • Infra red reflectance • Laser welding • Laser marking • Infra red blocking • Holographics
Next generation LNP*compound effects • Thermally regulated materials…
passive switch • Improved inherent EM shielding • Extensions to new resins
Sustainability • High performance,
environmentally sustainable materials
• Improved recycling ease for our products
• Enable improved fuel efficiency, reduced emissions
• Flame retardancy without halogenated additives
• Eliminate need for paints
Our competitive advantages
SABIC Innovative Plastics Research & Development
New resins • Thermoplastic polyimides • Blends • Lexan* copolymers • High heat resins
Additive to thermosets • Improved dielectrics, (Dk, Df) • Increase heat • Improved ductlity • Improved dimensionals
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Start-Up Schedule
Mar’11 Apr’11 May’11 June’11 July’11 Aug.’11
Train 3 (OQ)
Start-Up Perf. Test Run
Run
Train 4 (OQ)
Start-Up Perf. Test Run
Run
Train 1 (GP/Ext)
Start-Up
Perf. Test Run
Run
Train 2 (GP/Ext)
Start-Up Perf. Test Run
Run
OQ Trains to be commissioned first
Mid to late 2Q for GP Portfolio
8 licensed grades + PC1800, PC1803R, PC1003R
Late 3Q for extrusion grades PC703R & PC703
Running at 260KT run-rate by November
Will need outlet for significant quantities of varying degrees of off-spec.
resin
Plant on Schedule to Start in March
4.35 8.42 8.89 13.76 16.52 16.52 PC, K Tons 146 KT in 2011 (16KT off spec)