2Benefits of working with Sasol Sasol is a global companyOur valuesThe Sasol Wax DifferenceSafety and QualityFormulating expertiseCurrent product offerings
3The Sasol Wax GroupWholly owned by Sasol Ltd, South Africa (NYSE: SSL)Wax Group Head office in Hamburg, GermanyMain wax production:Hamburg, Germany Petroleum based paraffin waxSasolburg, South Africa Synthetic paraffin waxRichmond, CA Blends, emulsionsMarketing offices:EuropeNorth AmericaMalaysiaAustralia1300 employeesSasol is a South African petrochemical company. It is listed on the New York stock exchange. It produces 40% of South Africa’s needs for gasoline. Other products include polymers (PE, PP, PVC), various solvents, surfactants, fertilizers, and also wax. Sasol is known for commercializing the Fischer-Tropsch technology using coal or natural gas as feedstock to produce these products. Sasol has 30,000 employees globally.The HQ for Sasol Wax is in Germany. The production facility there uses slack waxes, de-oils them, and then blends to produce custom products for a wide variety of applications. The facility is South Africa produces synthetic waxes using the FT process. These products are not by-products of any process. They are first intention products produced on-purpose.
4The Sasol Values apply to all Sasol companies Focus on CustomersWe listen to our customers, and meet their requirements with our best products, service and support systemsWinning with PeopleWe respect and encourage the contributions of our colleaguesWe reward excellent performanceSafetyWe work towards world class safety standards to eliminate injuriesExcellence in all we doWe pursue world-class business operating standards and superior performance within a framework of sound governance and internationally accepted health and environmental standards and practicesContinuous ImprovementWe strive to improve our performanceIntegrityWe deal with each other, our customers and other stakeholders fairly, openly and honestly
5The Sasol Wax Difference World Class Products - Many with unique advantagesGlobal supplyRelentless innovation and improvement of everythingTechnological expertiseExtensive experience in many industries and marketsDeep understanding of customer needsCustomised solutionsWin-win value in long-term relationshipsReliable supplyHighly responsive, flexible, and agileWe are always searching for ways to make a difference, and we believe that the 10 points in this slide explains it best. Important again for this meeting is “a deep understanding of customer needs” and the “win-win value in long-term relationships”.
6Sasol Wax North America Corp. SWNA is an importer and blender of waxes, manufacturer of wax emulsions.SWNA is the North American source of Sasol’s range of Fischer-Tropsch synthetic hard waxes.120 EmployeesPlant and Laboratory at Richmond, CABulk tanks at Richmond, CAHead office and Customer Service at Hayward, CA2 warehousesWebsite
7SWNA Supply Capability Long term relationships with reputable suppliers, supply agreementsStrong inventory of raw materials and finished products at Richmond, CAMulti-sourcing of equivalent raw materials reduces reliance on each sourceFormulating expertise around various raw materialsDelivery of liquid and packaged waxes by railcar, road tanker or truck, throughout North AmericaCapacity for finished products at Richmond, CA is approximately 275 million pounds ( mt) per year.Raw material Tank capacity in Richmond14 X 140 mt (each tank ~2 railcars)3 X 2500 mt1 X 3400 mtBlending capability2300 mt per week liquid, 450 mt per week packaged
8Richmond Manufacturing Plant Tanker unloading facilities First two 20,000-barrel bulk shore tanks 30,000-barrel tank Third 20,000-barrel tank Small tank farm, total 20,000 barrels of capacity 14,000-ft2 warehouse site Wax emulsion plant site Main production building
9Bulk Liquid Parcels Up to 5,000 metric tons (Equivalent to 75 tank cars) Terminal dock siteTanker unloadingAdvantages of bulk shipments:Most cost effective method of deliveryMost efficient mode of transportationMore consistent, improved quality
10Bulk Storage Capacity30,000 barrel and 20,000 barrel shore tanksPlant small tank farm20,000 barrel shore tanksInside processing tanksTerminal small tank farmPermanent storage includes 4 large-volume shore tanks, two small-tank farms and inside processing tanks totaling more than 35 million pounds.
11Rail FacilitiesBulk rail facilities are capable of loading/unloading up to 14 cars on two tracks. OSHA approved rail rack offers safe, easy access to cars on both tracks.
12Bulk Truck Loading Facilities Bulk liquid truck loading station is capable of loading two trucks simultaneously.Wax emulsion trucks are loaded in a bermed area to prevent accidental spills from contaminating the environment.
13Safety, Health, Environmental, Responsible Care & Quality SWNA is aligned with parent company SasolSafety Objective is RCR <0.5Driver safety training guideMSDS for each grade of wax we offer.Follow Good Manufacturing Practice.ISO9001 certified since June 2009QC manager reports to the Technical Director.Full QC and CoA before each shipment.QC coverage 24/7.Participant in ASTM Interlaboratory Crosscheck Program.
14SWNA Formulating Expertise The Sasol Wax business model is based on providing wax solutions for every process.Our staff of R&D personnel and product managers have significant experience and expertise in all areas of wax application.In every application, SWNA works with individual customers to ensure that the final product meets our customers' most stringent requirements.Using our knowledge of waxes and our customers’ applications, we are able to utilize waxes from multiple sources while maintaining consistent product performance.In order to ensure cost effective, continuous supply of raw materials for our products, SWNA sources waxes from all over the world, as well as from domestic suppliers.SWNA will not change the specifications or the basic ingredients of our formulations without first obtaining your written approval.
15Technical Support Differential Scanning Calorimeter FT-IR Gas ChromatographSpecialized SoftwareViscosity AnalyzerSaybolt Color AnalyzerPenetrometer
17Products for Paper and Packaging Flexible Packaging BlendsCorrugated BlendsSaturating WaxesCurtain Coating WaxesImpregnating WaxesDevelopment: Water based coatingsOur new developments of interest to Smurfit is the vegetable wax as paraffin wax extender. This has already been developed and been trialed and used in the industry.Our laboratory in South Africa is responsible for research and developments to look at water based coatings for the paper and corrugated industry. A few products have already been developed.New FT plants will be built globally and Sasol will be a major player. This is a long term development though (> 5 years).
18Wax in Paper and Packaging Water repellentSealingIncreased wet strengthBarrier function
19Hydrowax for Internal Sizing and Size Press Formulation For internal sizing the hydrowax is added to pulp commonly at the blend chest.HydroWax emulsions are finely emulsified/dispersed wax particles in water. As part of a sizing formulation they are used in size press applications. For internal sizing Hydrowax can also be added neat to the pulp. The selection of the best Hydrowax is determined by the finished paper good as well as processing parameters like pH, charge and shear forces.The pictures show different settings of a size press applications. Widely used are vertical and gate roll size presses.horizontalverticalinducedgate roll size press
20Refined Wax Grades for Flexible Packaging Cheese wrapButcher wrapFlorist paperCereal linerDairy productsBread wrapFruit wrapHamburger wrapCandy and gum wrapSoap wrapSasolwax offers a wide range of formulation for the manufacture of flexible packaging papers. These formulations are used in a wide variety of applications like wrappers for fresh food (e.g.meat, vegetables, fruits), dairy products (chocolate, candy, cream) and bread
21Formulations for Improved Moisture and Grease Resistance Cheese wrapButcher wrapFlorist paperDairy productsDecor papers
22Gloss and Sealing Waxes Bread wrapDisposable platesPackaging for frozen foodSoap wrappers
24Curtain Coating Waxes Meat Poultry Vegetables Sasolwax formulations are used for the production of a variety of cardboards and technical papers. Cardboards are used for shipping boxes of fresh and frozen food. Technical papers are needed for a wide range of applications from photographic, printing and document paper to wrapping paper for metal spare parts with greasy corrosion protection.
25Hydrowax for Moisture Barriers on Fine Paper The wax emulsions are being favoured in a new trend to do away with wax curtain coating and poly laminated coatings on food packaging and fine paper.The coating weight is less than half of curtain coating delivering a cost and recycling advantage to the customer.Cobb values are between at 25 Celsius and 50% relative humidity
26Emulsions for Anti-linting Well consolidated surfaceLow LintPoorly consolidated surfaceHigh LintWax particles on fibre before melting
27Sasolwax for Cardboard and Technical Paper MeatPoultryFrozen sea foodPlantsOily metal spare partsSasolwax formulations are used for the production of a variety of cardboards and technical papers. Cardboards are used for shipping boxes of fresh and frozen food. Technical papers are needed for a wide range of applications from photographic, printing and document paper to wrapping paper for metal spare parts with greasy corrosion protection.
28SASOL WAX SATURATING WAXES Wax Property(Typical Value)SASOL WAX SATURATING WAXESD20-1D20-1PD20-2D20-3D25Melting Point, ºF (D127)131137134136─Congealing Point, ºF (D938)128132Blocking Point, ºF (D1465)115117118Color, ASTM D15000.5Saybolt Color, ASTM D156+25+15Needle 77 ºF1012Viscosity, 212 ºF3.75.04.04.25.6FDA COMPLIANCE21CFRY21CFR
29Curtain Coating WaxesThis table depicts some of our current products for curtain coatings. We work with plants to produce custom blends as this application is very sensitive to processing parameters and equipment.We also have impregnating waxes available in liquid bulk.
30Water Based Coatings Development Emulsification and formulation of coatingsYears of experience in waxes, emulsification of waxes and application testingEasy access to and understanding of wide range of waxesStatistical design formulatingBarrier coating development areas:Water resistanceWater vapor transmission rateOil and grease proofSpecific slip angle requirementsCold set glue-abilityDouble coatingsAs previously stated, this development work is done in South Africa where we have a lot of experience in emulsifying waxes. These products provide barrier properties specifically designed to achieve the desired requirements be it water resistance etc.
31Water Based Coating Successes 30 minute Cobb values below 20gsm (commercialized)coating weight 7gsm, recycled Kraft liner, Applied off line,before corrugatorMVTR below 20gsm24hr, 23°C, 50% relative humiditySlip angle, values above 35° obtainedDepends on base paper, coating weight and temperature treatmentHot melt glue-ability, excellentLow tendency to damage (abrade) fruit (corrugated fruit boxes)
32Water Based Products Sasolwax Barrier Coating 1 Corrugated boxes for fruit packagingWater resistanceRe-pulpable and recyclable (?)Rod coatingSasolwax Barrier Coating 2 (Exp 1612)Corrugated boxes for meat and vegetablesImproved MVTRHot melt glue-ableRod coating recommendedWe currently do have 2 products that we will be able to sample under secrecy agreement. The next few slides will explain the attributes of each.
33Barrier Coating 1 – Attributes Provides an excellent water resistant barrierResistance to oil and greaseExcellent water beadingHigh slip angleHeat stable properties at corrugatorNo blockingHot melt glueableRepulpable and recyclableFDA compliance, 21CFR, , components of paper and paperboard in contact with dry foodsRecommended coating weight, 7gsm (dry)Rod coating recommendedDrying, curing temperature recommended between 60° to 70°CMedium viscosity, easy to handle coating
34Barrier Coating 1 – Product Data PropertyMeasurementNon-volatile contentpHBrookfield Viscosity at 25°C (LV4 spindle, 60rpm)ColorDensity at 25°CShelf life at 25°CStabilityCobb value, 30 minutes*Slip angle**Tested on 150 gsm Kraft linerboard40 mass%8.91000 cPLight creamy0.99 kg/liter12 months in closed containerStable if stored between 5°C and 35°C20 gsm34 degrees
35Barrier Coating 2 (Exp 1612) Attributes Provides an excellent water vapour barrier (MVTR)Provides an excellent water resistanceResistance to oil and greaseExcellent water beadingHigh slip angleHeat stable properties at corrugatorNo blockingHot melt glueableRepulpable and recyclableFDA compliance, 21CFR,Recommended coating weight, 7gsm (dry)Rod coating recommendedDrying, curing temperature recommended between 60° to 70°CMedium viscosity easy to handle coating
36Barrier Coating 2 (EXP 1612) Product Data PropertyMeasurementNon-volatile contentpHBrookfield Viscosity at 25°C (LV4 spindle, 60rpm)ColorDensity at 25°CShelf life at 25°CStabilityCobb value, 30 minutes*Slip angle** Tested on 175 gsm Kraft virgin liner39 mass% cP Light creamy 0.99 kg/liter 12 months in closed container Stable if stored between 5°C and 35°C 8 gsm 42 degrees
37Future Water based Developments Hybrids Mixtures of Polymer and wax emulsionsAddition of wax results in a step change in moisture barrier propertiesWide variety of polymer emulsionsStyrene-basedPVAEPDM etcProducts with good water resistance andGlue-able with cold set water based adhesivePrintable with water based inks
38Global Wax Supply Trends (FT and Petroleum-based) The global tendency of wax producers to exit the market is expected to continue (Base oil driven)
40Pricing and Price changes Wax prices are subject to supply and demand.Wax prices are not indexed to oil price.Advantages of SWNA’s multi-sourcing:ReliabilityIndependenceBest qualityPricing disciplineOur R&D not confined to paraffin wax
41Visit our Plant and Office We cordially invite you to:Visit our Plant in Richmond, CASee our safe, clean operationsObserve our storage capacityTest our logistics capabilityGet to know our Customer Service colleaguesAnd meet the great people who make your wax
42Map To Office and Plant Locations Richmond PlantUse Harbour Way South exitHayward OfficeUse Winton Ave exit