Honeywell: Specialty Additives Lubricants for PVC. Vivek Ranjan

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Honeywell: Specialty Additives Lubricants for PVC Vivek Ranjan Vinylplast 2013

Honeywell s Businesses $36.5 billion in revenues, about 55% of sales outside of U.S. 132,000 employees and close to 1,300 sites in more than 70 countries Morris Township, NJ global corporate headquarters Aerospace Automation and Control Solutions Performance Materials and Technologies Transportation Systems 2 Today s Honeywell

Performance Materials and Technologies A global leader in developing and manufacturing advanced materials and process technologies. These materials and technologies are used by people every day in a wide range of industries and applications, from petroleum refining to environmentally friendlier refrigerants to bullet-resistant vests. Morristown, NJ headquarters $5.7 billion in revenues (2011) Products: Process technology, equipment, catalysts, adsorbents, and services for the refining, petrochemical, and natural gas industries Fluorine technology, including non-ozone-depleting and low-globalwarming-potential refrigerants and blowing agents Specialty films, additives, and chemicals Advanced fibers and composites for armor and industrial applications Intermediate products, including nylon feedstock caprolactam, nylon resin, ammonium sulfate fertilizers, and chemical intermediates. Electronic materials and chemicals Businesses: Honeywell s UOP Fluorine Products Resins and Chemicals Specialty Products Electronic Materials 3 Today s Honeywell

Typical Rigid PVC Formulation Formulation Ingredient PVC Resin Heat Stabilizer Fillers/pigment Impact modifier Process Aids Lubricant Type Suspension Mass CPVC Lead Organotin Mixed Metal Organic Calcium Carbonate Talc TiO2 Acrylic (core-shell) CPE MBS High molecular weight copolymers. Esters Salts of fatty acids Paraffins PE-waxes 4 HONEYWELL - CONFIDENTIAL Function Structure; Shape ; Strength. Acid scavenger. Eliminate and/or replace labile chloride which initiates dehydrochlorination. Interrupt color development. Inert materials added to improve economics without diminishing physical properties. Pigments provide protection from UV light. Color Brittle/ductile transition Promote fusion by transfer of shear forces. High molecular weight helps control PVC melt rheology. Lubricants facilitate flow through processing equipment and dies, or release from metal surfaces (eg. calendar rolls).

PVC Compound Evaluation by Torque Rheometry Fusion time Fusion Peak Compaction Equilibrium Stabilizer Depleted Polymer Crosslinking 5 HONEYWELL - CONFIDENTIAL

Mechanism of Lubrication in PVC internal lubrication internal lubricant external lubrication PVC particle external lubricant Metal PVC particle 6 HONEYWELL - CONFIDENTIAL

External Lubrication Internal Effect External Effect Polar Groups Short Chains Branched Molecule Strong Affinity to PVC Weak Affinity to Metal Reduces Melt Viscosity No Clarity Issues Non Polar Long Chain Linear Molecule No Affinity to PVC Strong Affinity to Metal Surfaces No Effect on Melt Viscosity Non Clear Applications Illustration courtesy of www.specialchem.com 7 HONEYWELL - CONFIDENTIAL

Honeywell s Product. Range Honeywell Synthesized Waxes Further Value Added Product Offerings Ethylene Propylene Ethylene & Vinyl Acetate Ethylene & Acrylic Acid Low Density Polyethylene Homopolymer Maleic Oxidation Anhydride Ethylene Low Density Maleic Oxidized Anhydride Copolymer Polyethlene High Density Polyethylene Homopolymer Oxidation High Density Oxidized Polyethylene Polypropylene Homopolymer Maleic Anhydride Propylene Maleic Anhydride Copolymer Ethylene Vinyl Acetate Copolymer Oxidation Oxidized Ethylene Vinyl Acetate Ethylene Acrylic Acid Copolymer Neutralization Ionomer Rheochem Blends ACumists Other Raw Materials Page 8

Factors that influence PVC Fusion Fusion: The breakdown of PVC primary particles into a homogeneous melt. Fusion Delay: External Lubricants: Paraffin wax, PE homopolymer waxes. High filler loading. Low processing temperatures. Fusion Promotion: Calcium Stearate. Processing Aids. High Density Oxidized PE waxes: A-C 316(A), A-C 307(A) 9 HONEYWELL - CONFIDENTIAL

Effect of Fusion Behavior on Extrudate Under Fused - Gloss Reduction - Poor Die Flow, edge tear - Poor melt strength - Impact properties not developed Over Fused - High extrusion torque - Loss of melt strength - Entrapped volatiles - Poor surface appearance, melt fracture, drag lines - Poor impact strength Optimum - Maximized machine output - Good physical properties - Excellent surface appearance 10 HONEYWELL - CONFIDENTIAL

Single Ingredients: A-C Polymers 11 HONEYWELL - CONFIDENTIAL

A-C Polyethylene Homopolymers A-C 617, A-C 6A Advantages: - Extremely efficient external lubricant - Good cost/performance ratio - Improved gloss with A-C 617 Disadvantages: - Quite concentration sensitive - Not recommended for clears - Not recommended where printing or laminating is to be performed - Strong fusion delay 12 HONEYWELL - CONFIDENTIAL

Low Density Oxidized Polyethylenes A-C 629A, A-C 680A Advantages: - Will give good clarity printability and laminatability when used at recommended levels - Will not adversely affect H.D.T. or impact - Excellent cost/performance ratio - Good processing latitude when used at recommended levels - Excellent metal release 13 HONEYWELL - CONFIDENTIAL

Low Density Oxidized Polyethylenes A-C 629A, A-C 680A Gloss: - Lower compared to homopolymers Fusion: - No significant influence on fusion behavior Transparency: - More compatible with PVC - But low viscosity and risk for haze - A-C 680A can be used at low dosage (< 0.15 phr) in transparent applications Surface Finish: - Positively affect surface finish 14 HONEYWELL - CONFIDENTIAL

High Density Oxidized Homopolymers A-C 307A, A-C 316A Advantages: - Excellent metal release - Promote mixing and homogenization - Excellent clarity (A-C 316A) - Increase the fusion speed - No affect on H.D.T. - Increased impact strength - Improved profile surface 15 HONEYWELL - CONFIDENTIAL

FEEDING A-C A.N VISC HARD 6A 0 375 4 629A 16 200 5 316A 16 8500 >0.5 SCREW DIE PRESSURE (BAR) EXTRUDER PRESSURE FUSION PROMOTION 90 80 70 SLIGHT FUSION DELAY 60 50 40 FUSION DELAY 30 20 10 0 FEED P1 P2 P3 P4 Die -10 16 HONEYWELL - CONFIDENTIAL

Copolymer: EVA: A-C 400A Improves gloss Neutral affect on fusion Used in combination with LD & HD Ox PE s - Reduced melt pressure - Reduced chatter in calibrator 17 HONEYWELL - CONFIDENTIAL

A-C Wax Performance Features Range of Formulating Options to Balance Desired Properties 18 HONEYWELL - CONFIDENTIAL

A-C PE Waxes for PVC Applications 19 HONEYWELL - CONFIDENTIAL

High Performance Lubricants (HPL) 20 HONEYWELL - CONFIDENTIAL

HPL Overview Honeywell s High Performance Lubricants are specialty PVC lubricant systems designed to meet the needs of rigid PVC processors by helping to achieve and maintain optimum productivity and product performance. Manufacturing cost savings made possible by HPL through - Higher yields - Lower energy consumption - Reduced downtime Lower overall raw material costs - Higher filler loading - Optimization of heat stabilizer, impact modifier dosage Novel and Versatile Technology 21 HONEYWELL - CONFIDENTIAL

HPL: Performance Features and Benefits Performance of HPL 1-pack versus a conventional lubricant package: Benefit HPL Performance Throughput + 10 30% Melt Pressure Melt Temperature Dynamic Heat Stability Static Heat Stability Fusion Torque Dosage (Efficiency) 10+ % Lower Lower Significantly Improved No difference 10+ % Lower 30-50% Lower Gloss + 15% Color Improved 22 HONEYWELL - CONFIDENTIAL

HPL: Performance Features and Benefits Benefit Weatherability (Ca/Zn better than Pb) Plate-out Process Robustness Supply Chain Stability HPL Performance No difference (up to 12,000 hrs) Generally significantly reduced Greatly enhanced, facilitating: - CPE vs acrylic impact modifier. - Increased filler level. - Reduced stabilizer level Overall formulation cost reduction HPL is based on natural RMs NOT oil. Paraffin availability in structural decline. HPL formulation tailored to maximize the benefits of most value to customer (not all benefits can be realized together). Versatile Technology: Multiple Benefits 23 HONEYWELL - CONFIDENTIAL

Addressing Key Challenges Customer Challenge HON Value Proposition Proof of Value Raw material cost Lower compound cost 15~30% reduction in lubricant usage Better wall thickness control Manufacturing Cost Operational cost Increased output rates Lower energy cost Increased productivity Less wear and tear Reduced working capital No / delayed capital investments Zero qualification time No change in quality Lower use levels/different type of stabilizer, impact modifier and higher filler loadings 10-15% profile, 20-40% pipe >50% compounding 5-20% reduction in Amperage draw No plate-out issues Low pressure & temperature of operations Lower inventory levels Capacity expansion at variable cost Already qualified in multiple applications Meet / exceed all specs; improved aesthetics Compliant with industry codes 24 HONEYWELL - CONFIDENTIAL Listed by NSF, PPI

Energy Efficiency Energy Consumption reduced by 24% Significant Energy Savings 25 HONEYWELL - CONFIDENTIAL

Brabender Torque (mg) HPL Increases Compound Stability 5000 Profile Formulation Control HPL HPL with 25% Reduced Stabilizer 4500 4000 3500 3000 2500 2000 1500 1000 500 0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 Minutes Increased Dynamic Heat Stability at Reduced Stabilizer Levels 26 HONEYWELL - CONFIDENTIAL

Examples of Successful Projects 1. Higher output: improved productivity, cash flow by lowering overall cost 2. Higher filler loadings: reduced $/lb and $/ft 3 3. Weatherable products: superior color hold for Southwest 4. Low Sn formulations: up to 10% reduction proven in comm. scale 5. One-pack convenience: complex formulations made simple 6. Additives optimization: lowered lubricant, impact modifier dosage Goals are customer, plant, equipment-specific 27 HONEYWELL - CONFIDENTIAL

Case study from US PVC Pipe Producer Customer three week trial with HPL 6410 in place of conventional package. Plant capacity is 70 M lbs of PVC pipe per year. Benefit HPL Performance Lubricant Dosage Stabilizer Dosage Energy Consumption Overweight Gloss Plate out/die Drool Vent Powder Reduction Dosage of RL415 was 1.5 phr, HPL dosage is 1.2 phr Reduction from 0.5 phr to 0.4 phr Overall plant energy costs reduced by 6%; individual extruders were reduced by up to 15% Reduced by 0.5% (3.0% - 2.5%) due to improved wall control Improved with HPL Significant reduction which reduces clean-outs and equipment shutdowns Reduced amount of compound collected in vacuum system by 90% Actual benefits may vary depending upon processing equipment and parameters 28 HONEYWELL - CONFIDENTIAL

Thousands $ Customer Benefits with HPL Only easily quantifiable data was used in calculations. Other benefits such as gloss improvement and die drool reduction were not quantified. Customer savings with HPL 1,400 1,300 1200 142 1,200 116 1,100 1,000 50 175 876 900 800 700 600 500 400 300 200 100 0 Operations Cost using RL415 Lub dosage Stabilizer reduction Energy savings Overweight reduction Operations Cost using HPL Total Annual Savings for customer is $324,000 29 HONEYWELL - CONFIDENTIAL

Broad Range of Applications APPLICATION Large diameter pipe Hydraulic pipe Stabilizer-Lubricant one-pack Window profile extrusion Injection molding RESULTS >3x filler loading Optimized use of additives: stabilizer, acrylics 0.05phr lower lubricant dosage 15% higher output >15% higher throughput 10% reduction in usage level 17% higher output rate Savings of up to 20% on heat stabilizer Reduced energy consumption 10% lower melt pressure 15% lower amperage 200% increase in filler loading Up to 50% reduction in lubricant dosage Siding 30 HONEYWELL - CONFIDENTIAL Formulation flexibility CPE vs. acrylics Higher filler loadings, output rates

Performance requirements for switching from Pb to Ca/Zn-stabilized Window Profile Formulations Customer Feedback: - Wider processing window - Increased output - Reduced plate-out - Scrap reduction - Improved thermal stability High Performance Lubricant Concept - Balanced lubrication (internal external) - High efficiency vs. conventional lubricants - Improved productivity - Customer specific solutions, tailorable - Excellent compatibility with all lubricant classes Customer CTQ s met with HPL Solution 31 HONEYWELL - CONFIDENTIAL

Summary & Conclusions Without lubrication processing of rigid PVC would be impossible. An optimized lubrication system will optimize processing output, physical properties and final part appearance. Honeywell offers an extensive range of lubricants to optimize the value created by our customers. Honeywell s technical team of experienced PVC formulators is available to assist customers in application development, formulation development and lubricant system optimization. 32 HONEYWELL - CONFIDENTIAL