FIRST BRAZILIAN PVC CONGRESS Sao Paulo, Brazil June 6-8, 2005 Helmuth Leitner

DSPl / HLR Plastics Sector SOLVAY SBU VINYLS 3 June 6-8, 2005 There are good news from Latin America to US and Europe PVC is increasing its volume TPO not as good as thought Price/performance ratio is an essential in favor of PVC BUT WE HAVE TO KEEP OUR CRUISING SPEED PVC in Automotive

DSPl / HLR Plastics Sector SOLVAY SBU VINYLS 4 June 6-8, 2005 PVC in Automotive What was the background ? The ELV in his first draft had a ban on PVC Numerous (automotive) producer thought, it will happen At least in the revision of ELV foreseen for 2005 If all producers change > NO impact on internal competition But at least one didnt play the game in Europe

DSPl / HLR Plastics Sector SOLVAY SBU VINYLS 5 June 6-8, 2005 PVC in Automotive The implementation of the ELV directive Plastics Industry (+Automotive industry?) tries to substitute parts of recycling targets versus recovery Phase out of lead is a fact in Europe – all will follow The choice of (german) automotive industry NO dismantling, > shredder

DSPl / HLR Plastics Sector SOLVAY SBU VINYLS 6 June 6-8, 2005 Options for shredder light fraction Automotive Shredder Residue Ferrous scrap Shredder Light Fraction (SLF) Heavy fraction Pretreatment Shredder residue-main process Shredder Granulates PVC-rich PVC-poor Chemical industry Blast Furnace Gasification (SVZ) Longer term: Novel gasification (e.g. Carbo-V) MeOH Light fraction

DSPl / HLR Plastics Sector SOLVAY SBU VINYLS 7 June 6-8, 2005 Stigsnaes feedstock recycling A new feedstock recycling unit dedicated to PVC rich streams will come on stream in early 2005 with a capacity of > to/y They are interested in creating a PVC rich fraction out of ASR and to treat that

DSPl / HLR Plastics Sector SOLVAY SBU VINYLS 8 June 6-8, 2005 PVC in Automotive PVC regaining acceptance (see also economic situation of car industry in many parts) But NOBODY will confirm in public Trend to leather is favoring PVC (20 % in 2007 will have leather interior) GM-Fiat, VW, Ford and BMW using increasingly PVC (BMW serie 6 and with serie 5 indoor panel) New Ford C Max with PVC IP and also the new Passat Ford EcoSport in Brazil launched with PVC

DSPl / HLR Plastics Sector SOLVAY SBU VINYLS 9 June 6-8, 2005 PVC in Automotive BUT Ford wishes a « Green PVC » BMW « has no policy on PVC » > progress serie 3 has PVC and PU interior DC « neutral » no longer anti-PVC statements in their Environmental Report as well as PSA and Renault

DSPl / HLR Plastics Sector SOLVAY SBU VINYLS 10 June 6-8, 2005 PVC-use in cars Interior dashboard skins, carpets, door panels, consoles, arm rests, grips, interior seals, sun visors, seat coverings, luggage compartment covers Others underbody coating, battery separation plates, fuel line protection Exterior body trim, window encapsulation, bumper spoiler, door steps, roof rack coverings Electrical wiring cable insulation, moulded plugs

DSPl / HLR Plastics Sector SOLVAY SBU VINYLS 11 June 6-8, 2005 Plastics in dashboards TF = Thermo Forming; SM = Slush Moulding; IM = Injection Moulding; SC = Spray Coating SM TPO/TPU SM PVC 25,3% SC PUR 4,0% TF TPO/ASA 21,2% TF PVC 26,3% IM 23,2% Year 2000 SM TPO/TPU 0,0% SM PVC 25,3% SC PUR 4,0% TF TPO/ASA 21,2% TF PVC 26,3% IM 23,2% Year 2003 SM TPO/TPU 0.2% SM PVC 34.0% SC PUR 15.0% Other 50.8%

DSPl / HLR Plastics Sector SOLVAY SBU VINYLS 12 June 6-8, 2005 Market evolution: PVC-slush Total estimated European volume Tons

DSPl / HLR Plastics Sector SOLVAY SBU VINYLS 13 June 6-8, 2005 Material & process technology: basis for choice Performance CostWeight Environmental aspects

DSPl / HLR Plastics Sector SOLVAY SBU VINYLS 14 June 6-8, 2005 Design freedom Costs (material, tool, Styling requirements Costs (material, tool, investment) TPO foam sheet TPO compact sheet PVC foam sheet ABS/PVC compact sheet PUR Spray skin PUR casting TPU slush PVC slush Source: VDI; plastics in Automotive engineering (Mannheim, 2003)

DSPl / HLR Plastics Sector SOLVAY SBU VINYLS 15 June 6-8, 2005 Market evolution: PVC-slush Forecast Total estimated European volume

DSPl / HLR Plastics Sector SOLVAY SBU VINYLS 16 June 6-8, 2005 Models with PVC-slush

DSPl / HLR Plastics Sector SOLVAY SBU VINYLS 17 June 6-8, 2005 Models with PVC-slush

DSPl / HLR Plastics Sector SOLVAY SBU VINYLS 18 June 6-8, 2005 Material & process technology: basis for choice Performance: Styling requirements Visual appearance Touch (Haptik) Mechanical & physical properties Surface properties Ageing Environmental aspects: Emissions Recyclability

DSPl / HLR Plastics Sector SOLVAY SBU VINYLS 19 June 6-8, 2005 Advantages of PVC-Slush Technology Cost / Performance Design Freedom Stress Free Esthetics (color, aspect, soft touch, grain) Scratch Resistance Easy Processing Available in any tailor made color Low fogging Perception of quality in car

DSPl / HLR Plastics Sector SOLVAY SBU VINYLS 20 June 6-8, 2005 Reasons for future growth All classes of vehicles Other interior applications of PVC-slush (design uniformity) Door panels Other car manufacturers

DSPl / HLR Plastics Sector SOLVAY SBU VINYLS 21 June 6-8, 2005 PVC in Automotive - what was done Very intensive contacts to automotive industry Demonstrate innovation in application and end- of-life Correct mis-information (Dioxine, ELV, phthalates,…) Another example: Institudo do PVC collaborates with AEA (Automotive Engineering Association)

DSPl / HLR Plastics Sector SOLVAY SBU VINYLS 22 June 6-8, 2005 PVC in Automotive – what to do more Get in contact with « newcomers »: Hyundai and others Stay in contact with all players Continue innovation THEN PVC will stay a material of choice in cars