Solvay Engineered Polymers

Company Overview

Solvay Engineered Polymers

The Company • an independent, wholly owned subsidiary of Solvay America, Inc. of Houston, Texas. The Solvay Group of chemical and pharmaceutical companies operates in more than 40 countries

• the largest North American Supplier of elastomer-modified thermoplastic olefins (TPOs) and other engineered polyolefin materials to the automotive industry

• a recognized leader in the automotive applications engineering for polyolefin materials

• materials used in a wide variety of interior, exterior, and underhood applications by the world’s largest OEMs

• Sales of $150-200 million, with continued rapid sales growth projected for the future

1200 Harmon RoadAuburn Hills

Michigan48326

Solvay Engineered Polymers

History 1976 Ciba-Geigy establishes TPO business:

• Ren-Plastics Division

1982 Business spun off in management buyout:

• Research Polymers International (RPI)

1986 RPI acquired by The Dexter Corporation:

• Dexter Plastics Division

1990 TPO business resources placed into joint venture formed between The Dexter Corporation and The Solvay Group:

• D & S Plastics International

1997 The Solvay Group obtains The Dexter Corporation’s share of the joint venture

• Solvay Engineered Polymers

Solvay Engineered Polymers

The Solvay Group• Founded in 1863

• 1997 sales of $8.4 billion

• 350 operating locations in 41 countries

• 35,400 employees worldwide

• Global chemicals and pharmaceuticals markets:

– Alkalis

– Peroxygens

– Plastics

– Materials processing

– Health industry

• 1997 Polypropylene Sales

– 742 Million Lbs.

• 1997 Polyethylene Sales

– 1.7 Billion Lbs.

• Headquarters in Brussels, Belgium

Solvay Engineered Polymers

Business Resources• Production Description:

TPO and engineered polyolefin materials

• Target Market:

Automotive OEMs and injection molders

• Manufacturing Capacity:

>225 million pounds per year, worldwide

• Employees worldwide: 325

• Current customers: 70

– Big 3 US carmakers: Daimler/Chrysler, Ford, GM

– North American transplants:

Honda, Mazda, VW, BMW

– Overseas OEMs:

Hyundai, BMW, Rover, Mercedes, Fiat

– Parts manufacturers/molders worldwide

Solvay Engineered Polymers

Market PositionNorth American Automotive

• Largest TPO supplier to North American automotive industry

• Major supplier to transplant operations

European Automotive• Current sales of airbag cover

materials• Production and development

programs at most major OEMs

Far East Automotive• Active presence in Japan, Korea,

Taiwan

Mytex

Solvay

SchulmanMontell

Other

CCT

North American automotive plastics market totals an estimated 2360 million pounds

TPO represents 9% of the plastics use -- an estimated 225 million pounds

Solvay Engineered Polymers

Worldwide FacilitiesAutomotive Applications Development Center

Auburn Hills, Michigan

Manufacturing and R & DGrand Prairie, Texas

Mansfield, Texas

Beerse, Belgium

Donjin, Korea

European Technical CenterBrussels, Belgium

North American Sales OfficesAuburn Hills, Michigan

Concord, Ontario

Union, Kentucky

Circleville, Ohio

Worldwide Sales OfficesChiba, Japan

Schorndorf, Germany

Paris, France

Milan, Italy

Coventry, United Kingdom

Solvay Engineered Polymers

Vision StatementSolvay Engineered Polymers will be recognized as the world’s leading supplier of engineered polyolefin materials to the automotive industry.

Mission Statement

Solvay Engineered Polymers is the development partner of choice in the automotive market for engineered polyolefin materials and applications technology. We are committed to continuously improving our product, services, and human resources in order to fully satisfy our internal and external customers’ needs and expectations. By providing innovative, timely and cost effective solutions to automotive industry needs, we will meet our objectives for growth in sales and earnings.

Solvay Engineered Polymers

Quality StatementAs employees of Solvay Engineered Polymers, we recognize that quality is a key strategic issue in the achievement of our business goals and objectives.

We are committed to the principle of continuous improvement in quality, productivity, cost, technology and delivery in order to provide our customers with world class quality products and services and in order to improve our internal efficiencies and operating results.

We will utilize cross-functional teams, statistical tools, advanced quality planning techniques, and clearly defined procedures and work instructions as the primary methodologies for achieving continuous improvement.

Every employee in our business is involved in this task, starting with members of the Lead Team.

Solvay Engineered Polymers

Solvay Eng. Polymers

New Automotive Applications

New Products

New Geographies

InteriorUnderhood

Europe

Mexico

TPVs

RTPO

Solvay Engineered PolymersFuture Growth

Solvay Engineered Polymers

Automotive Material Trends

Application 1990 2000

Bumper fascia RIM, PC/PBT, TPO, PBT TPO, RTPO, RIM

Air dam/valance TPO RTPO

Fender liner PP PP

Fenders PPO/Nylon, RIM, SMC,PBT/PET

TPO, PPO/Nylon, ABS/PC,PBT/PET

Grilles ABS, TPO, ABS/PC TPO, ABS, ABS/PC

Cowl vents SAN, ASA SAN, ASA, TPO

Mud flaps TPR, TPO, Ionomer TPR, TPO

Rockers TPO, TPR, RIM TPO

Claddings/moldings TPO, TPU, PVC, RIM TPO, TPU

Door panels ABS/PC, SMC ABS/PC, SMC, TPO

Exterior applications

Solvay Engineered Polymers

Application 1990 2000

IP substrate ABS/PC, Steel, SMA, PC ABS/PC, Steel, PP, SMA

IP cushion PU PU, PE

IP skin PVC/ABS PVC/ABS, TPO

IP upper PC blends TPO

Trim upper ABS, HIPP PP

Trim lower PP, TPO PP, TPO

Door trim PP, PE, PVC PP, PE

Airbag door TPO, RIM, TPE, TPR TPO, TPE, TPR

Interior applications

Automotive Material Trends

Solvay Engineered Polymers

Product Line Overview

• DEXFLEX

– Compounded TPOs (50-280 kpsi)

• FORTILENE

– Polypropylene resins from Solvay

• ONTEX

– Directly paintable TPOs

• SEQUEL Engineered Polyolefins

– 1400: thin wall

– 1500: mar resistant

– 1600: thermoplastic rubber

replacement

– 1700: low CLTE

Solvay Engineered Polymers

SEP Product Experience

• 1992 “Thin Wall” (3.0 mm)

• DEXFLEX 162:– Mazda 626– Mazda MX6– Ford Probe– GM U-Van– VW Beetle

• 1997 “Thin Wall” (2.5-2.8 mm)

• SEQUEL 1440/1402:– Mazda 626– Mercury Cougar– Ford Mountaineer Front Bumper– Chrysler LH Bumpers– Chrysler NS Bumpers– Chrysler WJ Bumpers (MIC

Metallic)– 22 more tools at Ford being

commercialized– 18 More tools at Chrysler being

commercialized

Solvay Engineered Polymers

SEP New Material Initiatives

• Thin wall parts:

– New advances in thin wall bumpers by extending SEQUEL® 1440 technologies to achieve 2.0-2.2 mm thick parts

• Body Panels:

– Continuing developments in polyolefin body panels through SEQUEL® 1726 and 1733 technologies

• Conductive Substrates:

– Exclusive manufacturing rights to conductive polyolefin materials. Current technology available in wide range of polyolefin materials.

• Olefinic Paint Systems

• Engineering resin conversion:

– Continuing development and implementation activities converting from engineering resins (PC, PC/ABS, PC/PBT, RIM, etc.) to Engineered Polyolefins

• Mold-In-Color Metallic

• Mar Resistance

• Paint Durability

• TPV Materials

Solvay Engineered Polymers

Development Capabilities

4000 Ton Battenfeld440 Ton Battenfeld

Pilot Paint Line

Introduced First Ford Fascia100% Sourced Ford Fascia

First Thin Wall Fascia withGas Assist

Master Source for all Color ApprovalsIntroduced First Post Industrial Recycle

Introducing exclusive Conductive material

Joint development with coinjection technology

Joint development with in-mold filmIntroducing high flow/high flex

technology

ResinDevelopment

StrategicJDA Activity

Solvay- PP- PE- Catalyst

PP Supply BaseAdditives Elastomers Paint Suppliers

CoreCompounding

Technology

Grand Prairie, TX Mansfield, TX

ApplicationDevelopment

BaseTechnology

AdvancedTechnology

Auburn Hills, MichiganFacility

Joint Development with Olefinic Paint System

Solvay Engineered Polymers

Automotive Applications

Development Center

• Advanced process technology

• Complete CAE capabilities

• 4000-ton and 450-ton presses

• OEM-certified prototype paint line

• Environmental chamber

• Application testing• Up to 18 months, historically to complete cycle

• 1 month at AADC

Complete application development via:

Paint Mold

Test CAE