Planned Capacity Expansions for PE in North America

Report
Doing More with Less
WPA
June 2014
Newport Beach, CA
© Copyright 2012 Muehlstein
Innovation
Food
Packaging
Collation
Shrink
Heavy
Duty Sacks
Stand Up
Pouch
Lamination
Films
© Copyright 2012 Muehlstein
2
The road to more sustainable
packaging solutions
Novel
Metallocene
Resins
Advances in
Processing
Equipment
Source: ExxonMobil Chemical
Film
Formulations
© Copyright 2012 Muehlstein
3
Development Opportunities with mPE
Gauge reduction
Performance
Enhancement
Reformulation
Options provide value to film producers and converters
Source: ExxonMobil Chemical
© Copyright 2012 Muehlstein
4
Defining the Development Options
1. Thinner gauge & equal performance as reference
– Lowers the cost of the film structure to the converter
– Enables downstream players to do the same with less weight of film
(GAUGE)
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, ... ...
3. Maintain performance & gauge at reduced formulation cost
– Lowers the cost of the film structure to the converter
– No direct technical benefit for the downstream players
(REFORMULATE)
• 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
5
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5
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
Coextrusion
Multilayer
4+ layers
1 – 3 layers
LDPE/
LLDPE rich
Metallocene
Polyethylene
© Copyright 2012 Muehlstein
6
mPE resins introduction
Exceed™ and Enable™ mPE resins form a unique portfolio that
facilitates business opportunity expansion across the value chain.
LDPE
Improved
toughness
PROCESSING
LDPE-r
Blends
Enable™
mPE resin
Processing
credits
LLDPE-r
Blends
C4
LLDPE
C6
LDPE-r (75% LDPE + 25% LLDPE)
LLDPE-r (25% LDPE + 75% LLDPE)
C8
Exceed™
mPE resin
PROPERTIES
Source: ExxonMobil Chemical
ExceedTM and EnableTM are trademarks of ExxonMobil Corporation
© Copyright 2012 Muehlstein
7
Effect of blend component on
Exceed™ mPE resin films
Exceed mPE / Enable™ mPE resin blends offer significant property improvement versus
Exceed mPE / LDPE resin formulations:
• 1 mil (25 µ) monolayer blown film comparisons
Similar extrusion conditions
Exceed 1018 (1 MI, 0.918d) blends
0 - 20% LDPE (0.75 MI, 0.924d)
0 - 30% Enable 20-05 (0.5 MI, 0.920d)
• Dart drop impact
–
–
LDPE Blends
800
Dart Drop Impact (g/mil)
–
–
–
–
Exceed mPE Blend Films - Dart Drop Impact
1000
600
400
200
0
Significant improvement (up to 300%)
Significant drop-off in dart at > 5% LD addition
0
10
15
20
25
30
Exceed mPE Blend Films - MD Elmendorf Tear
250
200
Elmendorf Tear (g/mil)
5% LDPE addition drops MD tear by 50%
Little tear decrease with Enable 20-05 addition
5
% Blend Component
• MD Elmendorf tear strength
–
–
Enable mPE Blends
150
LDPE Blends
Enable mPE Blends
100
50
0
0
5
10
15
20
25
30
% Blend Component
Data from tests performed by or on behalf of ExxonMobil Chemical
ExceedTM and EnableTM are trademarks of ExxonMobil Corporation
© Copyright 2012 Muehlstein
8
Gauge reduction in Heavy Duty Sacks
Year
1990
Trend line of
1995
MONO
Film
LDPE
LLDPE
First 3Layer Coextrusion
2000
LDPE
LLDPE
Introduction
of Exceed
mPE
200 µm
2005
Exceed mPE
Exceed/HDPE
High clarity
Technology
MDPE
Thickness
- 3.5 % /year
2010
Exceed mPE
Introduction
of Enable
mPE
Enable mPE
Exceed mPE
LDPE
C4 LLDPE
Exceed mPE
HDPE
LDPE
LLDPE
Exceed mPE
Exceed mPE
Exceed mPE
Enable mPE
160 µm
140 µm
125 µm
100 µm
Exceed mPE
HDPE
Hardware development
Product development
Application technology development
Exceed™ and Enable™ mPE resins extended capabilities of 3-layer technology
Source: ExxonMobil Chemical
ExceedTM and EnableTM are trademarks of ExxonMobil Corporation
© Copyright 2012 Muehlstein
9
New film equipment evolution
100
3-layer
Line Sales (%)
80
60
40
5-layer
20
monolayer
0
1990
2000
2010
2020
2030
W&H, EMCC estimates
• 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
5-layer technology will become the new industry standard
Source: ExxonMobil Chemical
© Copyright 2012 Muehlstein
10
5-layer technology capabilities
The power of numbers : 5-layer technology greatly expands design options.
• 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
Source: ExxonMobil Chemical
© Copyright 2012 Muehlstein
11
Coextrusion Advantages
• 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
© Copyright 2012 Muehlstein
12
Blown film developments in heavy duty sacks film
5-layer polyolefin technology provides the next breakthrough.
Year
1990
Trend line of - 3.5 % /year
1995
MONO
Film
LDPE
LLDPE
First 3Layer Coextrusion
LDPE
LLDPE
2000
Introduction
of Exceed
mPE
Exceed mPE
MDPE
LDPE
C4 LLDPE
Thickness 200 µm
2005
Exceed/HDPE
High clarity
Technology
Exceed mPE
Exceed mPE
HDPE
2010
Introduction
of Enable
mPE
Enable mPE
Exceed mPE
Exceed mPE
HDPE
Near Term
2015
New 5
Layer POD
Technology
Enable mPE
HDPE
Exceed mPE
LDPE
LLDPE
Exceed mPE
Exceed mPE
Exceed mPE
Enable mPE
HDPE
Enable mPE
160 µm
140 µm
125 µm
100 µm
80 µm
DATASOURCE : EMC estimates
Source: ExxonMobil Chemical
ExceedTM and EnableTM are trademarks of ExxonMobil Corporation
© Copyright 2012 Muehlstein
13
Performance Boost in Coex Structure
• Performance boost by increasing mPE
LLDPE
Mechanical Property Index *
dosage in coex structures.
LDPE
LLDPE
LLDPE
90
LLDPE
70
LLDPE
50
LLDPE
LDPE
Reference
LDPE
LDPE
LDPE
Exceed mPE
LLDPE
Enable mPE
LDPE
LDPE
Exceed mPE
LDPE
mPE - lean Structure
Enable mPE - lean Structure
30
0
20
40
60
80
mPE Dosage (%)
100
* The index is calculated as the area in spider charts of previous two slides.
LLDPE
LLDPE
LLDPE
• Diversified and tailored solutions offered by
Exceed and Enable mPE resins
- Enable: help processing combined with
film performance
- Exceed: complement to achieve highest
Exceed mPE
Enable mPE
LLDPE
Enable mPE
Enable mPE
Exceed mPE
Enable mPE
LDPE
LDPE
mPE - rich Structure
Enable mPE - rich Structure
Exceed mPE
Exceed mPE
Enab le mPE
Enable mPE
Exceed mPE
Value-added
Structure
Enab le mPE
performance in toughness and sealing
ExceedTM and EnableTM mPE resins offer complementary options to tailor performance improvement and to
create down gauge potential.
Data in this slide comes from tests performed by or on behalf of ExxonMobil Chemical
ExceedTM and EnableTM are trademarks of ExxonMobil Corporation
© Copyright 2012 Muehlstein
14
Pallet Unitization
Pallet Unitization
• Lighter materials are now used instead of heavy
•
More sustainability flexible film solutions
• Energy consumption reduced
– Shrink oven removed with stretch
• Higher packaging line throughput
•
Machine
Stretch
Shrink Hood Machine
Stretch Wrap Stretch
Hood
Shrink hood
hood
stretch wrap
shrink/cardboard
Metallocene PE contribute to dramatic
improvement in film toughness
– 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
Year
Film Film on
Gauge Pallet
(μm)
(g)
Film Film on
Gauge Pallet
(μm)
(g)
1975
250
1890
-
-
-
-
1985
180
1360
25
380
-
-
1995
150
1140
23
264
140
990
2005
120
910
20
232
100
620
2010
90
690
17
200
60
370
Euro pallet
1.5m high, 8.2m²
• ExxonMobil Chemical estimates
Film Film on
Gauge Pallet
(μm)
(g)
Euro pallet
1.5m high, 2m², 12 cycles
Euro pallet
1.5m high, 2m long hood
© Copyright 2012 Muehlstein
15
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
Photos used are representative of potential product applications only
Source: WRAP UK
•
Stand-up pouches offer more
sustainable packaging solutions for
high quality food and drink products
© Copyright 2012 Muehlstein
16
Clarity shrink film - Cardboard tray packages
Monolayer LD/LL blend reference
Toughness MD
Tensile at Break (N)
• Enable™ mPE resin-based films offer
40
• Unit cost and weight reduction
• More sustainable flexible film solutions
• At a thinner gauge deliver
• Equivalent toughness
• Equivalent stiffness
Stiffness
310 (MD 1% Secant
Modulus, N)
Holding Force 1.7
(MD, N)
• Lower logistics costs
Shrink
(TD Betex at 40
150 C, %)
• Equivalent puncture
Gloss
50
(at 45 deg)
• Improved clarity
0 0 0
0
0
0 0
120
70
Puncture
Resistance
(Peak Force, N)
Clarity
(%)
• Similar holding force
Reference
EnableTM mPE resin alternative
80-50 µm – Monolayer
25% Downgauging – Monolayer
75% LD (0.922 density)
25% C4LL (0.918 density)
60% Enable™ mPE 27-03 (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
ExceedTM and EnableTM are trademarks of ExxonMobil Corporation
© Copyright 2012 Muehlstein
17
Mulch film solution
Enable™ mPE resin based
films offer:
• Unit cost reduction (28% gauge
reduction)
16
300
0
0
• More sustainable
film solutions
• Significant improvement in
tensile and dart
13
0
0
0
500
C4-LLDPE
Ref (25μm)
• Similar tear
85
Enable mPE solution
(18μm)
TM
80% C4-LLDPE (2.0MI, 0.918
Mono-Layer
density)
20% LDPE (2.0MI, 0.9225
100% Enable 20-05CH
density)
Data from tests performed by or on behalf of ExxonMobil Chemical
ExceedTM and EnableTM are trademarks of ExxonMobil Corporation
© Copyright 2012 Muehlstein
18
Downgauging Opportunity
• 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
MD Tensile at
Break (N)
39
MD Tensile at
Break (N)
38
1% Secant
180
Modulus
MD (N)
28 TD Tensile at
Break (N)
1% Secant
200
Modulus
MD (N)
30 TD Tensile at
Break (N)
0
0
0
0
0
0
0 0
0
0 0
MD Elmendorf
Tear (g) 220
230
130
Puncture Force (N)
Dart Drop
(g)
0
MD Elmendorf
Tear (g) 150
Enable™ mPE 20-05CH resin: 0.5 MI; 0.920 g/cm3
Enable™ mPE 27-05CH resin: 0.5 MI; 0.927 g/cm3
LDPE: 0.75 MI; 0.923 g/cm3
C4-LLDPE: 1.0 MI; 0.918 g/cm3
400
Dart Drop
(g)
155
Puncture Force (N)
25% LDPE + 75% C4-LLDPE (50 µm)
75% LDPE + 25% C4-LLDPE (50 µm)
25% Enable™ mPE 20-05CH resin + 75% C4-LLDPE (45 µm)
75% Enable™ mPE 20-05CH resin + 25% C4-LLDPE (40 µm)
25% Enable™ mPE 27-05CH resin + 75% C4-LLDPE (45 µm)
75% Enable™ mPE 27-05CH resin + 25% C4-LLDPE (40 µm)
Data from tests performed by or on behalf of ExxonMobil Chemical
ExceedTM and EnableTM are trademarks of ExxonMobil Corporation
© Copyright 2012 Muehlstein
19
Downgauging Obstacles
Possible obstacles
● Converter has perception that
down gauging is less profitable, as
films are sold in $/ton.
Resolution
● Down gauged films have a higher
yield, which in most cases results in
lower unit costs ($/m2)
● Lower unit costs are what
ultimately matters to the brand
owner.
Potential benefits for
brand owner
● Lower unit costs ($/m2) are
achieved as more packs are
produced per roll of film
● Lower inventory costs
Potential benefits for
converter
● Improved profitability, as lower unit
costs justifies a higher $/ton price
● Lower inventory costs
● Lower unit costs can also lead to
higher profitability for the converter.
● 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.
© Copyright 2012 Muehlstein
20
Outstanding Customer Value
Potential benefits
Integrated knowledge
Novel
Metallocene
Resins
CONVERTER
PACKER /
BRAND OWNER
Advances in
Processing
Equipment
Film
Formulations
RETAILER /
CONSUMER
 Cost ↓
 Productivity ↑
 Source reduction
 More productive operations
 Sustainability opportunities
 Improved consumer attention
Metallocene resins open new avenues in packaging film
Source: ExxonMobil Chemica
l
© Copyright 2012 Muehlstein
21
Contact Information
Doug Laurent
Phone: 920-214-3812
[email protected]
© Copyright 2012 Muehlstein
22

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