Toll Compounding

8/3/2019 Toll Compounding

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The Plastics Industry----Dynamic and Ever Changing


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Resin suppliers are going back

to their core competencies


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Resin suppliers are going back

to their core competencies

Fewer and fewer end use materials

can be engineered in the reactor


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Resin suppliers have been, and continue to,go back to their core competencies

Fewer and fewer materials can be

engineered in the reactor

The marketplace continues to demand an

increasing number of unique materials


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Resin suppliers have been, and continue to,go back to their core competencies

Fewer and fewer materials can be

engineered in the reactor

The marketplace continues to demand anincreasing number of unique materials

The market is growing!


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Lets Understand The Magnitude

Of The Market(s) We Play In


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In 1999 overall thermoplastic demand wasin excess of 77 Billion pounds


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The Overall Market Demand

(billion pounds)

Material 1994 1999 2004 2009

Eng. Plastics 2.1 3.4 4.3 5.5HDPE 10.7 13.8 16.8 20.0LDPE 12.3 14.6 17.2 20.0Polypro 8.9 13.0 16.5 20.7Polystyrene 5.6 6.3 7.1 8.0

PVC 10.0 13.0 15.5 18.3TPEs .8 1.1 1.5 2.0Others 9.1 12.2 14.2 16.2

Total Demand 59.5 77.4 93.2 110.7


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Independent compounders provided over 6Billion of those pounds (8%)


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Demand Supplied ByIndependent Compounders

(million pounds)

Material 1994 1999 2004 2009

Eng. Plastics 930 1305 1645 2050Polyethylene 825 1050 1270 1500Polypropylene 715 970 1225 1510Polystyrene 351 395 450 510PVC 1365 1785 2155 2570

TPEs 405 600 835 1160

Total Demand 4591 6105 7580 9300


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Independent compounders provided over 6Billion of those pounds (8%)

Growth for independent compoundersbetween 1994 and 1999 was about 5.9%

Growth between 1999 and 2004 isforecasted to be 4.4%

Engineered thermoplastics are forecastedto grow at 4.7%


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Growth Rates:Independent Compounders

(million pounds)

Matl 1994 1999 2004 2009 99/94 04/99

ETPs 930 1305 1645 2050 7.0% 4.7%PE 825 1050 1270 1500 4.9% 3.9%PVC 1365 1785 2155 2570 5.5% 3.8%Others 1471 1965 2510 3180 6.0% 5.0%

Total 4591 6105 7580 9300 5.9% 4.4%

GDP 7338 8848 10030 11430 3.8% 2.5%(bill $)


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Material/Product Needs Of TheMarket Are Being Filled By:


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Captive Compounding Operations


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Custom Compounders


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Custom Compounders

Processor Owned Compounders


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Custom Compounders

Processor Owned Compounders

Toll Compounders


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The Role Each Plays In TheSupply Chain

ResinManufacturer

ConcentrateSupplier

AdditiveSupplier

Processor

TollCompounder

CustomCompounder

CaptiveCompounder

ProcessorOwned Cmpd.


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Focus On Toll Compounding

Concerns, Issues, MythsAre they valid?

Is there a stigma attached to what we do?


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Focus On Toll Compounding

Concerns, Issues, MythsAre they valid?

There are small tollers and thereare large tollers

Barriers to entry are minimal

Some are professional----some aregarage shops


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Are Toll CompoundersPoor Cousins?

Safety

Quality

Technology

Confidentiality/Integrity

Logistical Support

Environment


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The Fact Is.

These are the very issues we focuson every day to be the best we can be.

Today, more than ever before, we area vital linkin the supply chain between

the prime resin supplier and themarket place.


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The Role We Play InThe Supply Chain

ResinManufacturer

ConcentrateSupplier

AdditiveSupplier

Processor

TollCompounder

Wh t M k F A


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What Makes For ASuccessful Toll Compounder

In Our Industry?

What is the Technologywe bring?

What are the Serviceswe provide?

What is the Rolewe play?


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Yes, We Bring ConversionCapacity And Services

Compounding

Blending

Drying Crystallization

Grinding

Packaging Testing

Warehousing


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But We Bring More

First, and foremost, we are a SolutionProvider

We bring value through assistingour customers solve theircustomers problems.

Their customers are our first priority.


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And More..

We provide on going, consistent,

high quality products and servicesWith an eye towards continualImprovement.


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And More

A Commitment To HSE:

To the health and safety ofour Associates

To care for the environment


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Market Survey: CustomersExpectationsOf Their Toll Compounders

HighYields

Trust-CenteredRelationships

Strict CustomerConfidentiality

Consistent

Quality

ProductionCapacity

On-TimeDelivery

e-Commerce; Easeof Doing Business

Proactive & HonestCommunications

LogisticalCapabilities

MaterialsManagement

What

Customers

Want


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Our Business Model:Maximizing Your BusinessBy DesignPartnership

Maximization

Process

Maximization

Performance

Maximization

Shared Vision

OpenCommunications

ClearExpectations

Collaborative

Solutions

Continuous

Improvement

Quality Plan

Quality Audits

Customer Visits

High PerformanceAssurance


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In Summary


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In Summary

We build a long term strategic

relationship.

We provide more thanjust a tactical solution to a shortterm problem.


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In Summary

We manage our customers logisticsto make the Partnership hassle free.


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In Summary

Professionalism

Competency

Safety of our Associates

Care for the environment

Confidentiality

Date post:	06-Apr-2018
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Toll Compounding

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