DSM Elastomers Presentation at the VKRT

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1 THE Global Innovative EPDM Supplier DSM Elastomers Presentation at the VKRT Maurits F.H. van Tol DSM Elastomers Vice-President, Global Research and Development February 12th, 2009

2 Outline of the presentation Introducing DSM Elastomers Innovation at DSM Elastomers: the three technology platforms Product Development & Application Development Modified EPM s by Reactive Extrusion Keltan ACE TM : handover to Herman Dikland

The DSM Elastomers Business Card - EPDM - - TPV - A

markets 500 employees 200 kt EP(D)M capacity Global

from the global TPV specialist with the complete

Leominster Triunfo Sao Paulo Genk Sittard Geleen

3 The DSM Elastomers Business Card - EPDM - - TPV - A global leader in EPDM With presence in all leading markets 500 employees 200 kt EP(D)M capacity Global Innovation Leader Sarlink TPV Quality TPV Solutions from the global TPV specialist with the complete high quality product portfolio Baton Rouge Leominster Triunfo Sao Paulo Genk Sittard Geleen Singapore Shanghai Beijing = Production facility = Sales office

DSM Keltan THE Global Innovative EPDM Supplier Three Technology Platforms Further expanding on Product and Application Development Technology Implementation of Keltan ACE TM Technology Implementation

4 DSM Keltan THE Global Innovative EPDM Supplier Three Technology Platforms Further expanding on Product and Application Development Technology Implementation of Keltan ACE TM Technology Implementation of Reactive Extrusion Technology Market-Driven Growth and Innovation DSM Elastomers investments in support of innovation programs Organizational alignment in support of innovation programs (2006) Significant increase in manpower for new product and application development (2006) New reactive extrusion plant in Triunfo, Brazil (Opened 2008) Implementation of Keltan ACE TM technology in Geleen, The Netherlands (2008)

550mm x 366mm* 25kg * Can and will be affected by cold flow of the product Colorless oil 680mm x

5 Keltan Product Development Gradual transition to colorless oil extended portfolio New Packaging & Product Appearance Keltan 509x100 Keltan 4551A NEW The upgraded Keltan 509x100 Yellow oil 550mm x 366mm* 25kg * Can and will be affected by cold flow of the product Colorless oil 680mm x 340mm* 25kg Keltan 509X100 Keltan 4551A, Keltan 512X50 - Keltan DE4331A, Keltan 708X15 Keltan DE6531A

6 EPDM ULD Sponge Requirements -an illustration of our AD programs Density < 0.1 (If possible to match NBR/PVC density 0.08 to 0.06) Closed cell for insulation applications Good outer skin formation Good extrusion properties Continuous hot air cure Flame resistant systems now also available

7 The Challenge With such poor uncured strength, how is it possible to make ultra low density sponge from EPDM? Answers: 1. Increase the compound strength at the time of blowing agent decomposition to resist cell rupture. 2. Improve the compounds ability to contain high volumes of gas by raising the gas retention efficiency (GRE). Note: Understanding the challenge is easy. Achieving it is difficult. a. Polymer? b. Cure system? c. Process set-up?

Desired Outcome Achieved Correct polymer and ingredient choice has resulted in high gas retention efficiency. Densities of less than 0.06g/cm³ have been achieved.

8 Desired Outcome Achieved Correct polymer and ingredient choice has resulted in high gas retention efficiency. Densities of less than 0.06g/cm³ have been achieved. High GRE has resulted in significantly lower blowing agent additions for EPDM ULD sponge compared to NBR/PVC. EPDM ultra low density sponge can be produced on standard production facilities.

9 Keltan Reactive Extrusion Development EPM is reacted with Peroxides and Maleic Anhydride in a continuous extrusion operation (hence Reactive Extrusion) Petroleum Additives Wood-Plastic Composites Nylon impact modification etc,. Plant was opened mid-2008 in Triunfo, Brazil Product Form Bales Pellets Some illustrations of applications

Dispersant Viscosity Index Improvers Increased environmental restrictions on diesel emissions have resulted in a redesign of the engine to include exhaust gas recirculation.

10 Dispersant Viscosity Index Improvers Increased environmental restrictions on diesel emissions have resulted in a redesign of the engine to include exhaust gas recirculation. For diesel engines this has the effect of dumping a bag of coal in the crankcase. The result is greatly shortened oil change intervals leading to increased operating costs. DSM functionalized polymers are used to make dispersant viscosity index improvers that handle the increased soot and restore the normal oil change interval for HDD-EGR engines. This helps operating costs and contributes to a cleaner environment.

WPC Wood Plastic Composite DE5005 Example of compatibilization of polymer with polar material Blends of PP, PE or PVC with wood fibers / dust Outdoor decking and railing European market growing at

during last 5 years > 1000kt world market US is leading, European market is catching-up fast MAH grafted polymers identified as coupling agents Demand estimated to be >22 kt PE and PP based WPC (88%

11 WPC Wood Plastic Composite DE5005 Example of compatibilization of polymer with polar material Blends of PP, PE or PVC with wood fibers / dust Outdoor decking and railing European market growing at >20% p.a. during last 5 years > 1000kt world market US is leading, European market is catching-up fast MAH grafted polymers identified as coupling agents Demand estimated to be >22 kt PE and PP based WPC (88% market share) coupling agent for PE & PP in WPC: est. 2%. Encountered competition: Struktol, Polybond, Clariant, Dow, Tensile Strength Results Stress [MPa] 49 Polymer 50 Wood flour 1 DE Polymer 50 Wood flour Value proposition of DE5005 in WPC Improved polymer wood interactions Improved impact resistance Improved low temperature flexibility Reduced moisture swell Concentrated additive Strain [%]

Polyamide Impact Modification DE5005 Impact resistance is the property of a material to absorb the energy of a sudden shock Some materials such as rubbers have very high impact strength, whereas many

dispersion of soft, rubbery particles to the rigid EP matrix SAN, PC, PS, PA, PBT all have impact modified versions commercialized n-charpy [kj/m²] 60 Impact strength 50 40 Brittle/tough 30

12 Polyamide Impact Modification DE5005 Impact resistance is the property of a material to absorb the energy of a sudden shock Some materials such as rubbers have very high impact strength, whereas many high performance materials have low impact resistance which is often observed in form of brittleness at low or ambient temperature Many engineering thermoplastics can be impact modified by adding a dispersion of soft, rubbery particles to the rigid EP matrix SAN, PC, PS, PA, PBT all have impact modified versions commercialized n-charpy [kj/m²] 60 Impact strength Brittle/tough 30 transition PA6 Soft Rubber particle PA6/DE5005/Plastomer PA6 (literature) DE5005/Plastomer Temperature [ C] DE5005 is a highly functional non-crystalline polyolefin compatibiliser Impact PA6 compound 72% PA6 7% DE % Plastomer PA6 Suited for the impact modification of PA6 Allowing system cost reduction by dilution Introducing additional processing flexibility by a 2-component impact modifier system Increasing initial elongation at break Increasing notched impact energy Lowering the brittle/tough transition temperature

Polymer Modifier - Keltan 1200A Critical properties of low viscosity EPM grades Improved processing with maintained mechanical properties Unlimited EPDM

Time Zero Time 24 hrs 150 300 140 130 120 110 100 250 200 Keltan 1200A has very low viscosity and undergoes cold flow as evidenced by this transition!

13 Polymer Modifier - Keltan 1200A Critical properties of low viscosity EPM grades Improved processing with maintained mechanical properties Unlimited EPDM compatibility VOC neutral Non-fogging Not extractable Viscosity control in low oil or non oil compounds Improved extrusion and flow in injection moulding Time Zero Time 24 hrs Keltan 1200A has very low viscosity and undergoes cold flow as evidenced by this transition! K740 pure 90/10phr 80/20phr 70/30phr 60/40phr 50/50phr ML T.S. [MPa] Hardness [ Sh.A] Tear str. Delft [N] Elongation [%] Comp. Set 23 C [%] Comp. Set 100 C [%] Keltan 1200A, a low molecular weight ethylene propylene copolymer Is an excellent choice for polymer-rich compound formulations Shows improved compounding Results in improved extrusion Meets demanding mechanical requirements Maintains mechanical properties after aging FDA approved

14 Keltan Summary and Conclusions DSM Elastomers is highly committed to grow together with its customers around the Globe! DSM Elastomers has the ambition to remain THE Global Innovator in EP(D)M Three technology platforms have been defined to support DSM Elastomers growth and innovation ambitions Product and Application Development Reactive Extrusion Keltan ACE TM Global technical service & joint application development program for and with our customers Seeking active collaboration with external parties in general Market-Driven Growth and Innovation

15 Keltan ACE TM Technology Base catalyst technology licensed from Nova Chemicals DSM developed the catalyst for the production of Keltan and holds a strong patent position Market-Driven Growth and Innovation New catalyst system creates the opportunity to develop high value products that are unattainable with state-of-the-art Ziegler-Natta or classical metallocene chemistry Product diversification potential has led to the decision of implementing advanced catalysis in our existing production facilities The trade name for new advanced catalyst technology by DSM is Keltan ACE TM

NORDEL EPDM Product Selection Guide

NORDEL EPDM Product Selection Guide NORDEL EPDM products are members of Dow s family of ethylene propylene diene terpolymers and feature the widest range of ethylene content available in the industry.