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OPPORTUNITIES AND COLLABORATION WITH SABIC IN SUSTAINABLE PACKAGING World Packaging Days, Split, Croatia June 2012 Gert Coun SABIC, Manager Technical Marketing.

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Presentation on theme: "OPPORTUNITIES AND COLLABORATION WITH SABIC IN SUSTAINABLE PACKAGING World Packaging Days, Split, Croatia June 2012 Gert Coun SABIC, Manager Technical Marketing."— Presentation transcript:

1 OPPORTUNITIES AND COLLABORATION WITH SABIC IN SUSTAINABLE PACKAGING World Packaging Days, Split, Croatia June 2012 Gert Coun SABIC, Manager Technical Marketing LD/LL

2 No. 1 CONTENTS Introduction SABIC Sustainability as Global responsibility Saving energy by using plastics Practical sustainability cases with SABIC products Consumer protection Conclusions and invitation for dialogue & partnership

3 No. 2 SABIC IN NUMBERS 1976, our beginning 36 years of growth 2 nd largest global diversified chemical company* 33,000 employees 40 countries 60 world-class plants worldwide 1 Corporate Research & Innovation Center 14 Technology Centers 3 Application Centers & 8,000 global patents * Forbes 2011

4 No. 3 PRODUCTION HAS MULTIPLIED BY 6 IN 20 YEARS A high rate of growth… Production (million tons) …reaching 66M metric tons in 2010 Metals 5.191 Fertilizers 7.043 Chemicals 42.268 Polymers 10.667 Performance Chemicals 0.458 Innovative Plastics 1.231

5 No. 4 WE RANK AMONG THE TOP PRODUCERS WORLDWIDE #1#2#3 Mono-ethylene glycol MTBE Polycarbonate Polyphenylene Polyether imide Granular urea MethanolPolyethylene Polypropylene Polybutylene terephtalate Engineering plastics and its compounding

6 No. 5 WE HAVE A CLEAR AMBITION To be the preferred world leader in chemicals We will achieve this by partnering with our customers, helping them achieve their ambitions. When they grow, we grow. That’s why for us, OUR CUSTOMERS’ SUCCESS COMES FIRST

7 No. 6 INGENUITY DRIVEN BY TECHNOLOGY & INNOVATION Practical innovation Application development with key customers at the heart of our strategy More than 150 new products created every year Backed by more than 8,000 global patents World-class infrastructure and know-how 14 Technology & Innovation Centers in Saudi Arabia, Netherlands, Spain, USA, South Korea and India, with one under construction in China Three Application Centers in Saudi Arabia and Japan One Corporate Research & Innovation Center in Saudi Arabia

8 No. 7 ENSURING A SUSTAINABLE FUTURE IS A GLOBAL RESPONSABILITY Depletion of non-renewable resources Global warming Increasing energy demand Destruction of rainforests Increasing food and water shortage Toxicity and health risk

9 No. 8 8 SABIC’S STRATEGIC OPTIONS SyntheticHybridBio-based Non-Degradable, Recycling possible Oxo-Degradable Bio-Degradable Compostable Polymers Today Through Additives Through Natural Content Natural Content 0%100% Bio-Based Through Additives Bio-Based and Bio- degradable Bio-Based and Compostable Synthetic and Compostable

10 No. 9 SAVING ENERGY BY USING PLASTICS Preserving Food Optimizing energy usage Light weight solutions

11 No. 10 WHAT IS THE IMPACT IF WE WERE TO REPLACE PLASTICS? 328 mill t/a plastics Plastics plastics Alternative materials 39 mill t/a 4.270 mill GJ/a 204 mill t/a 6.690 mill GJ/a 146 mill t/a total masses for same functionality energy consumption in total life-cycle GHG emisions in total life-cycle X 3,7 +61%+57% 2,400 million GJ/yr equals : 50 million tonnes of crude oil

12 No. 11 OUR COMMITMENT “The SABIC sustainability mission is embedded in the fabric of our business. Our mission includes improving our environmental footprint, innovating products, services and processes that bring sustainability to our customers and growing our business by delivering better solutions for the planet and humanity.” Mr. Al Mady, CEO SABIC - Chairman of the SABIC Sustainability Council

13 No. 12 REDUCING THE FOOTPRINT OF OUR MANUFACTURING ASSETS Our operations are steered at continuous improvement and reduction of our environmental footprint, with regards to: - Greenhouse gases - Energy - Water - Material Effectiveness World Business Council for Sustainable Development SABIC will invest more than 100 million EURO in the upgrade of its naphta cracker in Geleen, the Netherlands, in order to significantly improve the energy- consumption of the plant and to reduce CO2 emissions (to be realized before the end of 2013).

14 No. 13 SABIC LCA APPROACH  Dedicated team of LCA experts  ISO 14044 Method  Impact on “fossil depletion”, “climate change”, “acidification”, “eutrophication” etc….  Analysis on “Cradle to Gate” and “Cradle to Grave” principle  End of Life Principles – Plastics Europe EU 2010 data for packaging Landfill- 35% Incineration- 33% Recycling- 32%  Reproducibility: an independent practitioner should be able to follow the approach and arrive at the same results  Environmental burden associated with infrastructure requirements are excluded

15 No. 14 CASE STUDY : DOWNGAUGING & RECYCLING ARE THE MAJOR CONTRIBUTORS IN LCA IMPROVEMENT Product – PP Packaging Cup Analysis type – Internal screening LCA Functional unit – 1 PP packaging cup (220 grams) System boundary - Cradle to Gate Illustration: SABIC Innovative Plastics 40C lower Processing T Base case C. footprint Adding 20% Recyclate 10% lighter Shorter Shipping distance 17% cycle time reduction Total post improvements 100% 12.1% 10.0% 4.8% 1.4% 0.5% 28% total improvements disposal shipment Polymer production molding Feedstock


17 No. 16 SABIC ® MULTILAYER SHRINK FILM : LESS FOR MORE 85% C4 LLDPE + 15% LDPE 50% HDPE + 50% LDPE Layer A : Layer B Layer A : 50% HDPE + 50% LDPE 85% C4 LLDPE + 15% LDPE 70% LDPE + 30% HDPE Standard Solution (45 µ) SABIC 5 Layer Film (35 µ)

18 No. 17 SYSTEM Characterization C6 LLDPE Film Crude Oil SABIC Plants Europe Converters (Europe) Naphtha Ethylene Multilayer Packaging Film LLDPE LDPE HDPE Use EOL Landfill Incineration Recycling System Boundary Avoided Virgin Material Avoided Electricity EU 2010 recycling rates for plastics packaging Source: PlasticsEurope Report “Plastics- the Facts 2011” 35% 33% 32% Cut-off Approach Excluded Process

19 No. 18 EXAMPLES OF TYPICAL LCA OUTCOME FOR SABIC ® MULTILAYER FILM CONCEPT Similar reductions for “particulate matter” formation, “acidification”, “eutrophication”….

20 No. 19 SABIC ® LDPE Ultra Melt Strength grades (UMS) can give 10% density reduction offering downgauging possibilities with improvement of LCA. SABIC ® LDPE UMS IN PACKAGING

21 No. 20 SABIC ® HDPE PRESERVING FRESH MILK SABIC ® HDPE B6246LS potentially enables 20% higher loading of recycled content compared to conventional HDPE due to : improved thermo- oxidative stability enhanced stable taste performance characteristics.

22 No. 21 WHAT ABOUT BIOPLASTICS? Decisions in favor of any material or product must be based on sound scientific criteria and a life cycle approach “Bio-based solutions will be an important part of the chemical industry’s future” Only those bio-based solutions must be developed that do not compromise food production or cause more problems than they solve, such as habitat destruction or large indirect CO 2 emissions” Mr. Al Mady, CEO SABIC


24 No. 23 SUSTAINABILITY & CONSUMER PROTECTION Positive Contribution to Health & Environment Safe Products : SAFE PRODUCTS have recognized customer value SAFE PRODUCTS enable safe application (e.g. safe food) SAFE PRODUCTS meet all relevant international and customer compliance needs

25 No. 24 ENABLING CONSUMER PROTECTION  SABIC offers specialized support to customers in using our products in a safe way in the value chain.  This support is based on: -Continuous development of polyolefin base resins with increased purity - Proactive service via internet to deliver safe, compliant and sustainable solutions for the value chain, supported by tools to address customer queries

26 No. 25 SUMMARY SABIC is committed to supplying Polyolefines in packaging industry. Sustainability is a Global responsibility : Using plastics can save energy High positive contribution of downgauging & recycling in LCA analysis Focus on Consumer Protection LCA improvements guide SABIC product developments in Packaging SABIC is ready for extra dialogue & partnership with customers around sustainability

27 No. 26 DISCLAIMER The products and services of SABIC are sold and rendered subject to SABIC’S standard terms & conditions of sale (GTCS), which are available free of charge upon request, by post or digital. Standard terms & conditions other than the GTCS are dismissed and do not apply. Although any information or recommendation contained herein is given in good faith, SABIC makes no warranty or guarantee, express or implied, (i) that the results or specifications described herein will be obtained under end-use conditions, or (ii) as to the effectiveness or safety of any design incorporating SABIC’s products, services or recommendations. This presentation or document does not contain any calculation, estimate or other warranty or representation that customers and third parties may rely on. Customers and third parties are responsible for making their own determination as to the suitability of SABIC’s products, services or recommendations for the customers’ particular intended use through appropriate end-use testing and analysis, and compliance with applicable laws and regulations. Except as provided in SABIC’S GTCS, SABIC shall not be responsible for any loss or damage resulting from any use of its information, products or services described herein and SABIC assumes no liability whatsoever in this respects. Nothing in any document or oral statement shall be deemed to alter or waive any provision of SABIC’s GTCS or this Disclaimer, unless it is specifically agreed to in a writing signed by SABIC. No statement by SABIC concerning a possible use of any SABIC product, service or design is intended, or should be construed, to grant any license under any patent or other intellectual property right of SABIC 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.

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