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Doing More with Less WPA June 2014 Newport Beach, CA © Copyright 2012 Muehlstein
Food Packaging Collation Shrink Heavy Duty Sacks Stand Up Pouch Lamination Films © Copyright 2012 Muehlstein 2 Innovation
© Copyright 2012 Muehlstein 3 The road to more sustainable packaging solutions Advances in Processing Equipment Advances in Processing Equipment Film Formulations Film Formulations Novel Metallocene Resins Novel Metallocene Resins Source: ExxonMobil Chemical
© Copyright 2012 Muehlstein 4 Development Opportunities with mPE Options provide value to film producers and converters Performance Enhancement Gauge reduction Reformulation Source: ExxonMobil Chemical
© Copyright 2012 Muehlstein 5 5 Defining the Development Options 1.Thinner gauge & equal performance as reference (GAUGE) – Lowers the cost of the film structure to the converter – Enables downstream players to do the same with less weight of film 2.Improved performance at equal gauge as reference (PERFORMANCE) – Delivers films with previously unattainable performance, resulting in more packs / minute, less failures, higher loads per pack, better display-ability, Maintain performance & gauge at reduced formulation cost (REFORMULATE) – Lowers the cost of the film structure to the converter – No direct technical benefit for the downstream players Option selection dependent on application specifics, business chain structure, converter’s strategy... Quite often Reformulation happens together with gauge reduction or performance improvements – i.e. people try to use as least of the new product to attain their downgauging or performance improvement goals
© Copyright 2012 Muehlstein 6 Technical Development Trends Downgauging and/or performance improvements across the business chain have been driving increased use of LLDPE and mPE Coextrusion capability becomes more critical LDPE/ LLDPE rich Metallocene Polyethylene 1 – 3 layers Coextrusion Multilayer 4+ layers Downgauging Line speed Package integrity Display Ability Lower Unit Cost
© Copyright 2012 Muehlstein 7 mPE resins introduction Improved toughness Processing credits PROPERTIES Exceed™ mPE resin LDPE-r Blends LDPE LDPE-r (75% LDPE + 25% LLDPE) LLDPE-r (25% LDPE + 75% LLDPE) LLDPE-r Blends LLDPE C8 C6 C4 PROCESSING Enable™ mPE resin Exceed™ and Enable™ mPE resins form a unique portfolio that facilitates business opportunity expansion across the value chain. Source: ExxonMobil Chemical Exceed TM and Enable TM are trademarks of ExxonMobil Corporation
© Copyright 2012 Muehlstein 8 Effect of blend component on Exceed™ mPE resin films 1 mil (25 µ) monolayer blown film comparisons – Similar extrusion conditions – Exceed 1018 (1 MI, 0.918d) blends – % LDPE (0.75 MI, 0.924d) – % Enable (0.5 MI, 0.920d) Dart drop impact – Significant improvement (up to 300%) – Significant drop-off in dart at > 5% LD addition MD Elmendorf tear strength – 5% LDPE addition drops MD tear by 50% – Little tear decrease with Enable addition Exceed mPE / Enable™ mPE resin blends offer significant property improvement versus Exceed mPE / LDPE resin formulations: Exceed mPE Blend Films - Dart Drop Impact % Blend Component Dart Drop Impact (g/mil) LDPE Blends Enable mPE Blends Exceed mPE Blend Films - MD Elmendorf Tear % Blend Component Elmendorf Tear (g/mil) LDPE Blends Enable mPE Blends Data from tests performed by or on behalf of ExxonMobil Chemical Exceed TM and Enable TM are trademarks of ExxonMobil Corporation
© Copyright 2012 Muehlstein 9 Gauge reduction in Heavy Duty Sacks Exceed™ and Enable™ mPE resins extended capabilities of 3-layer technology Hardware development Product development Application technology development Source: ExxonMobil Chemical Exceed TM and Enable TM are trademarks of ExxonMobil Corporation
© Copyright 2012 Muehlstein 10 New film equipment evolution 3-layer growth extended by advent of new mPE product introduction 3-layer approaching plateau growth during this decade Interest in 5-layer technology increasing rapidly supported by new products W&H, EMCC estimates Line Sales (%) 3-layer monolayer 5-layer layer technology will become the new industry standard Source: ExxonMobil Chemical
© Copyright 2012 Muehlstein 11 5-layer technology capabilities Thick core layer with thin skin- and sub-skin layers Enhanced film performance or additional down gauging through : – Introduction of specific functionalities in discrete layers – Increased flexibility through additional layer thickness combinations – Exploration of synergistic material / layering effect – Higher output by using layers of high melt strength materials The power of numbers : 5-layer technology greatly expands design options. Source: ExxonMobil Chemical
© Copyright 2012 Muehlstein 12 Coextrusion trend leverages product performance for improved film performance and value The advantages of moving from 1 to 3 layers also apply when changing from 3 to 5 layers: – Better film properties through: Pure materials in discrete layers Sandwich effect Broader choice of grades for a specific function – Additional formulation flexibility through increased number of layer as well as layer distribution options – High (higher) output – Downgauging–light weighting-sustainability Coextrusion Advantages
© Copyright 2012 Muehlstein 13 Blown film developments in heavy duty sacks film DATASOURCE : EMC estimates Near Term 5-layer polyolefin technology provides the next breakthrough. Source: ExxonMobil Chemical Exceed TM and Enable TM are trademarks of ExxonMobil Corporation
© Copyright 2012 Muehlstein 14 Diversified and tailored solutions offered by Exceed and Enable mPE resins Performance Boost in Coex Structure Performance boost by increasing mPE dosage in coex structures. Exceed TM and Enable TM mPE resins offer complementary options to tailor performance improvement and to create down gauge potential. * The index is calculated as the area in spider charts of previous two slides. Data in this slide comes from tests performed by or on behalf of ExxonMobil Chemical Enable: help processing combined with film performance Exceed: complement to achieve highest performance in toughness and sealing Reference mPE - lean Structure mPE - rich Structure Value-added Structure Enable mPE - lean Structure Enable mPE - rich Structure Exceed TM and Enable TM are trademarks of ExxonMobil Corporation
© Copyright 2012 Muehlstein 15 Pallet Unitization Lighter materials are now used instead of heavy shrink/cardboard Metallocene PE contribute to dramatic improvement in film toughness More sustainability flexible film solutions Energy consumption reduced – Shrink oven removed with stretch Higher packaging line throughput –Reduced sealing time Packaging weight reduction –30% from shrink to stretch hood –Equivalent to 4 trucks* (or 105 tons of film) removed for a 500kt/year plant –Further reduction with Stretch Wrap if outdoor storage not required Source: Lachenmeier Denmark ExxonMobil Chemical estimates Shrink hood Machine stretch wrap Stretch hood
© Copyright 2012 Muehlstein 16 Food Packaging Stand-up Pouches Application Laminated structures with PE Metallocene PE provides: –Excellent seal (shelf life) –Excellent toughness (puncture, package integrity) More sustainability flexible film solutions Packaging weight reduction –Same quantity of product in one third of the material from blow molded liquid container to Stand-up Pouch (SUP) –Waste volume reduced accordingly Stand-up pouches offer more sustainable packaging solutions for high quality food and drink products Source: WRAP UK Photos used are representative of potential product applications only
© Copyright 2012 Muehlstein 17 Clarity shrink film - Cardboard tray packages ReferenceEnable TM mPE resin alternative µm – Monolayer25% Downgauging – Monolayer 75% LD (0.922 density) 25% C4LL (0.918 density) 60% Enable™ mPE (0.927 density) 15% LD (0.922 density) 25% HD (0.961 density) Data from tests performed by or on behalf of ExxonMobil Chemical Example shown is 50 µm reference, 37.5 µm Enable™ mPE resin-based solution Monolayer LD/LL blend reference Enable™ mPE resin-based films offer Unit cost and weight reduction Lower logistics costs More sustainable flexible film solutions At a thinner gauge deliver Equivalent toughness Equivalent stiffness Equivalent puncture Improved clarity Similar holding force Exceed TM and Enable TM are trademarks of ExxonMobil Corporation
© Copyright 2012 Muehlstein 18 Mulch film solution Data from tests performed by or on behalf of ExxonMobil Chemical Enable™ mPE resin based films offer: Unit cost reduction (28% gauge reduction) More sustainable film solutions Significant improvement in tensile and dart Similar tear Exceed TM and Enable TM are trademarks of ExxonMobil Corporation
© Copyright 2012 Muehlstein 19 Downgauging Opportunity Data from tests performed by or on behalf of ExxonMobil Chemical Enable™ mPE 20-05CH resin: 0.5 MI; g/cm3 Enable™ mPE 27-05CH resin: 0.5 MI; g/cm3 LDPE: 0.75 MI; g/cm3 C4-LLDPE: 1.0 MI; g/cm3 Enable™ mPE resin blends with C4-LLDPE offer downgauging potential (lower unit cost) with improved film performance – Enable™ lean blends at 10% down gauge have >100% higher MD Elmendorf Tear compared to LDPE blends – Enable™ rich blends at 20% down gauge still outperform the reference film at most mechanical properties 25% Enable™ mPE 20-05CH resin + 75% C4-LLDPE (45 µm) 25% LDPE + 75% C4-LLDPE (50 µm) 25% Enable™ mPE 27-05CH resin + 75% C4-LLDPE (45 µm) 75% Enable™ mPE 20-05CH resin + 25% C4-LLDPE (40 µm) 75% LDPE + 25% C4-LLDPE (50 µm) 75% Enable™ mPE 27-05CH resin + 25% C4-LLDPE (40 µm) Exceed TM and Enable TM are trademarks of ExxonMobil Corporation
© Copyright 2012 Muehlstein 20 Possible obstaclesResolutionPotential benefits for brand owner Potential benefits for converter ● Converter has perception that down gauging is less profitable, as films are sold in $/ton. ● Down gauged films have a higher yield, which in most cases results in lower unit costs ($/m 2 ) ● Lower unit costs are what ultimately matters to the brand owner. ● Lower unit costs can also lead to higher profitability for the converter. ● Lower unit costs ($/m 2 ) are achieved as more packs are produced per roll of film ● Lower inventory costs ● Improved profitability, as lower unit costs justifies a higher $/ton price ● Lower inventory costs ● Being able to demonstrate lower unit cost savings to customer increases converter’s competitiveness, which opens up more opportunities. ● Converter has perception that down gauging leads to less production, which erodes profitability. ● Down gauging is only viable to the converter if (i) the $/ton return can offset production debits vs NBA, AND (ii) if the revised unit cost provides enough incentive for the brand owner to want to change. ● Converters steward their production mainly on the number of completed jobs and the amount of scrap produced - using less resin to achieve this is desirable, so down gauging is a potentially attractive solution. ● Completing job orders in less time results in utility savings (although need to consider the impact on scrap levels). Higher output is potentially achieved with Enable rich structures. ● More available extrusion capacity (i) allows possibility of filling spare capacity with more profitable job orders (ii) may delay the next extruder order, ● Down gauged mPE solutions are better equipped to meet existing and future environmental legislation. ● Brand owner has perception that downgauging dilutes end use performance. ● Brand owners need to be made aware of “less gives more” advantages of mPE technology. ● If converter has difficulty selling the down gauging concept effectively to the brand owner,. EMC can help bridge the gaps through presentations, seminars, samples, brand owner meetings and sharing market trends. ● Lower unit costs with the same but often superior performance. ● Superior mPE sealing properties can achieve faster packing speeds in many cases. Investing in high line speed equipment is easier to justify with mPE solutions, which can further reduce unit costs. ● Down gauged mPE solutions are better equipped to meet existing and future environmental legislation. Downgauging Obstacles
© Copyright 2012 Muehlstein 21 Outstanding Customer Value Metallocene resins open new avenues in packaging film Integrated knowledge Potential benefits CONVERTER Cost ↓ Productivity ↑ PACKER / BRAND OWNER Source reduction More productive operations RETAILER / CONSUMER Sustainability opportunities Improved consumer attention Film Formulations Novel Metallocene Resins Advances in Processing Equipment Source: ExxonMobil Chemica l
© Copyright 2012 Muehlstein 22 Contact Information Doug Laurent Phone:
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