World Plastic Industry Review

OUTLINE OVERVIEW OF THE PLASTICS INDUSTRY MAJOR THERMOPLASTICS TO BE REVIEWED POLYETHYLENE POLYPROPYLENE POLYSTYRENE CONCLUSIONS

THE PLASTICS INDUSTRY R E S

TI M E

I N S

ND E

SE U

FABRICATION METHOD

MAJOR WORLD REGIONS NORTH AMERICA LATIN AMERICA WESTERN EUROPE EASTERN EUROPE THE MIDDLE EAST THE FAR EAST

MAJOR POLYMERS THERMOPLASTICS

– POLYETHYLENE – POLYPROPYLENE – POLYSTYRENE – POLYVINYL CHLORIDE – ABS/SAN – STYRENE BUTADIENE LATEXES – POLYCARBONATES – PET – NYLON – ENGINEERING THERMOPLASTICS

MAJOR POLYMERS THERMOSETS – EPOXIES – MELAMINES – UNSATURATED POLYESTERS – PHENOLICS – UREAS – POLYURETHANES – POLYLACTIC ACIDS

MAJOR FABRICATION PROCESSES INJECTION MOLDING BLOW MOLDING EXTRUSION – FIBER – FILM – SHEET AND THERMFORMING – PROFILE – PIPE – WIRE & CABLE COMPOUNDING CALENDERING COMPRESSION MOLDING ROTOMOLDING OTHER PROCESSES

MAJOR END USE MARKETS END USE PACKAGING (Bottles, Film, Cups, etc.) BUILDING & CONSTRUCTION (Pipe, Siding, insulation, etc.) CONSUMER & INSTITUTIONAL (Toys, Housewares, Medical, etc.) TRANSPORTATION FURNITURE & FURNISHINGS ELECTRICAL/ELECTRONICS (W&C, Computers, Appliances, etc.) US MARKET 2000 (kTons) Percent of Total Market

9683 8554 5290 1846 1694 1461

25% 22% 13% 5% 4% 4%

MAJOR END USE MARKETS END USE ADHESIVES/INKS/COATINGS INDUSTRIAL MACHINERY ALL OTHER (Compounding, Resellers, Unknown) TOTAL DOMESTIC EXPORTS TOTAL US MARKET 2000 (kTons) Percent of Total Market

924 464 5228 35146 4396 39542

2% 1% 13% 11% 100%

ISSUES FACING THE PLASTICS INDUSTRY 1.

SUSTAINING DEVELOPMENT A. B. C.

OBTAINING ACCEPTABLE PROFITS ENVIRONMENTAL STEWARDSHIP CORPORATE RESPONSIBILITY CAPTIVE CONSUMPTION RISE OF MIDDLE EASTERN PRODUCTION STATE OF GLOBAL ECONOMIES

2.

ECONOMIC ISSUES A. B. C.

ISSUES FACING THE PLASTICS INDUSTRY ADDRESS PLASTICS ROLE IN POSSIBLE CLIMATE CHANGES 4. DEVELOP NEW PRODUCTS 3. 1. For Example: Improved Packaging a) b) c)

Longer Shelf Life Less Wastage of Products Improved Health and Safety

ISSUES FACING THE PLASTICS INDUSTRY FEED STOCK SUPPLY 6. INTERNATIONAL TRADE 7. IMPROVE PLANTS 5. A. B.

NEW PROCESSES UPGRADE OLD PLANTS

COMPANY PERFORMANCE RESIN COMPANIES REPORTING POOR PERFORMANCE IN 2001 FOR CHEMICALS AND POLYMERS

DOW EASTMAN EQUISTAR CHEVRON/TEXACO BP EXXON-MOBIL

AECI EVC SINOPEC FORMOSA PETKIM TESSENDERLO ATOFINA

POLYETHYLENE PRODUCT TYPES COMONOMER TYPES BUTENE HEXENE OCTENE

PLANTS (REACTORS) CATALYSTS ADDITIVES AND FILLERS END USE MARKETS SERVED SUPPLY/DEMAND RELATIVE PROFITABILITY

POLYETHYLENE SUPPLY CHAIN CRUDE OIL NATURAL GAS

DISTILLATION UNITS Naphtha Ethane Propane

Propylene

STEAM CRACKER Ethylene

Fuels

POLYMERIZATION PLANTS POLYETHYLENE

FABRICATION PLANTS END USERS

POLYPROPYLENE PRODUCT TYPES COMONOMERS – ETHYLENE – BUTENE

CATALYSTS ADDITIVES AND FILLERS END USE MARKETS SERVED (APC) SUPPLY/DEMAND RELATIVE PROFITABILITY

POLYPROPYLENE SUPPLY CHAIN CRUDE OIL NATURAL GAS

DISTILLATION UNITS Naphtha, Propane, etc.

STEAM CRACKER Ethylene Propylene 69%

FCC Propylene 29% POLYPROPYLENE

Fuels Alkylation Units

POLYMERIZATION UNITS FABRICATION PLANTS CONSUMERS

ON PURPOSE PROCESSES PROPANE DEHYDROGENATION METATHESIS DEEP CATALYTIC CRACKING METHANOL TO OLEFINS (Not Commercial)

PROPYLENE MARKETS PRODUCT POLYPROPYLENE ACRYLONITRILE OXY ALCOHOL CUMENE PROPYLENE OXIDE OTHER PRODUCTS TOTAL - 2000 Percentage of Total Production 2000 2000-2004 Forecasted Growth Rate (1)

57% 11% 8% 6% 7% 11% 51.2 MM Tons

6.7% 4.3% 6.2% 4.4% 4.3% -5.6%

(1) Petroleum Technology Quarterly 2001, page 132

POLYSTYRENE PRODUCT TYPES TYPE RUBBER TYPE PLANT ADDITIVES AND FILLERS END USE MARKETS SERVED SUPPLY/DEMAND RELATIVE PROFITABILITY

POLYSTYRENE SUPPLY CHAIN (SIMPLIFIED) ETHYLENE BENZENE SYTRENE MONOMER PRODUCTION STYRENE MONOMER RUBBER

POLYMERIZATION POLYSTYRENE

FABRICATION PLANTS

CONSUMERS

CONCLUSIONS 1. 2.

THE ECONOMY IS IMPROVING TO IMPROVE PROFITABILITY A. REDUCE OVERCAPACITIES A. SHUT DOWN NON-COMPETITIVE PLANTS B. BUILD ONLY LARGE ECONOMICAL PLANTS BASED ON GOOD MARKET RESEARCH B. SHIFT PRODUCT LINES FROM SPECIALTIES TO BASE GRADES PLUS ADDITIVES

CONCLUSIONS 2.

TO IMPROVE PROFITABILITY C. IMPROVE PROCESS/PRODUCTS D. IMPROVE IMAGE E. ENCOURAGE EDUCATION F. DEAL WITH CHANGING REGIONAL MARKET DEMANDS

INDUSTRY PROBLEMS VOLUNTEERISM INDUSTRY ORGANIZATIONS

SPE PEOPLE

SPI EQUIPMENT MANUFACTURERS, FABRICATORS

APC RESIN SUPPLIERS

BUSINESS ETHICS