PP Innovation from a different perspective The power to provide PP Innovation from a different perspective Sheet 1 Eric Hogenboom/Ron Reijntjens DSM Petrochemicals Business Manager PP Injection Moulding Senior Product Development Specialist PP Ladies and Gentlemen, When preparing for this presentation we were searching for a good title. We choose the displayed title: Stamylan P, the right choice with impact. Let me try and explain as an introduction why we have made this choice. Gert Coun SABIC EuroPetrochemicals Zurich 17 - 09 - 2003

Contents Basic Facts SABIC PP Industry trends leading to A new type of PP Innovation Decreasing number of PP grades Development of multi-functional PP grades 3 Examples of multi-functional PP grades: Block Copolymers for Injection Moulding Homopolymers for Film A new block Copolymer for sewage pipe Conclusions

SABIC: Saudi Arabian Basic Industries Corporation Started from scratch in 1976, produced first tons in 1983 Produced 40 million tons in 2002: 2 mln tons of additional product per year Turn-over of € 11,4 bln in 2002 Is 70% owned by Saudi government and 30% by private sector 100% owner of SABIC EuroPetrochemicals Basic Chemicals Intermediates Polymers Fertilizers Metals

SABIC is number 4 global polyolefin player Kton 10000 8000 6000 4000 2000 Basell Dow ExxonM SABIC BP/Solvay Borealis Atofina Equistar Phillips/ Chevron Formosa Plastics PE PP

Trends in PP Industry Historically, PP Innovation focussed on catalyst and technology developments These “technological” developments are matched quicker in increasing competitive PP environment. PP Producers: Forced to be cost driven and to optimise operating efficiency: Increase of minimum production run length Less flexibility to produce ‘specialties’ “Special” products become quicker and quicker commodities. Many interchangeable PP grades available. Differentiation possibilities based on PP grade performance are decreasing

A new type of PP innovation… Catalyst & technology developments are not anymore THE “differentiators” in PP business. Future PP Innovation will focus also new logistical concepts, organisational flexibility, internet development… One specific new type of PP innovation concentrates on a multi-functional PP product portfolio: Higher market coverage with less grades Multi-functionality in mono and multi applications Excellent grade “processability” and “consistency” “Stable” portfolio for customers

The type of PP innovation changes… Multi-Functional Grades for Decomplexation Product Processability and Consistency Catalyst & Technology Developments 80’s 90’s 2000-2010

Decreasing number of W.European COPOL PP grades 200 nr of COPOL PP grades 1997 1999 2001 2003 SABIC EPC Comp 1 Comp 2 Comp 3

Decreasing number of W.European HOPOL PP grades 300 nr of HOPOL PP grades 1997 1999 2001 2003 SABIC EPC Comp 1 Comp 2 Comp 3

The multi-functional BLOCK COPOL grade for injection moulding should offer: Low Blushing Stiffness/Impact Balance Good surface appearance Consistency High Flow & Fast crystallisation: Short cycle times Dimensional Stability Good Organoleptics

The Development of Multi-Functional Block-Copol grades for Injection Moulding Organoleptic Dimensional Stability Impact/stiffness Balance SABIC EPC Block Copol Grades Rubber content Cycle time Melt flow

Multi-functional Block Copolymers (1) Cycle time STAMYLAN P 412MN40 Dimensional Stability Organoleptic Tamper evidence Impact/stiffness Balance Surface Appearance

Multi-functional Block Copolymers (2) STAMYLAN P PHC31 Surface Appearance Impact Cycle time Dimensional stability Impact/stiffness Balance

The multi-functional BOPP HOPOL grade should offer: Excellent thickness profile High BOPP line speeds High clarity/gloss Consistency Good stiffness & barrier film properties Good metallisation

The development of multi-functional BOPP film grades for BOPP stenter process Mechanical / barrier Metallisation Stretching SABIC EPC Bopp Grades Broader mwd Optical Decreasing tacticity

Multi-functionality in a “mono-application”: The Develop-ment of a multi-functional Block Copol for Sewage pipes Waste water discharge pipe Public sewage pipes

Improving the impact /stiffness balance during the development a Block Copol for Sewage pipes 100 Stamylan P 71EK71PS Block Copol Random Copol 10 Notched Izod [kJ/m²] HOPOL Sabic developed a PP-B specially for this application. The development criteria were: Very high impact combined with a high stiffness (out of the normal range) Good processability MFI (I2) = 0.3 dg/min. The difficulty is that high impact together with high E modulus is difficult. (EXPLAIN GRAPH). This slide showes the outcome of this development. This PP-B is wide out of the normal range of existing materials (EXPLAIN GRAPH). How did we do that?? 1 500 700 900 1100 1300 1500 1700 1900 2100 2300 E-modulus [MPa]

A Multi-functional Block Copolymer for sewage pipe Impact at Low temperature Falling weight Impact STAMYLAN P 71EK71PS Processability - ”Ribbed” pipes Stiffness

Conclusions PP Industry trends lead to a new type of PP innovation. One new type of PP innovation targets a multi-functional product portfolio leading to: Reduction of number of PP grades Ultimate level of product processability & consistency Increase of “multi-application” use Decomplexation at PP producers and convertors (lower costs) “Stable” grade portfolio for customers