UNIPOL™ PE Technology

T h l
Strategic Solutions for the Indian PE Producer

Univation Technologies, LLC

16th International Conference

INDIAN Petrochem

October 30 – 31, 2014

Mumbai, India
Outline

 India Polyethylene Market Drivers

 PE Technology Solutions for Success

 UNIPOL™ PE Process – The Strategic Solution

– Product Capability

– Process Flexibility

– World-Class Performance

 Summaryy
 India Polyethylene Market Drivers

Dynamic Asian PE Markets A Dynamic Market

USD / ton

1600
HDPE
 Fast growing commodity market
LLDPE
1450  Periods
P i d off PE price
i volatility
l tilit

1300  Feedstock advantaged competition

1150
Di
Diverse and
d Evolving
E l i N d
Needs
1000
Jan ‘10 Oct ‘14  Cost-effective grades for large markets
India +3.3MT PE Growth  Specialty
p yggrades for p
premium markets
+0.5MT Specialty PE
 Capability to capture new opportunities
7
Metallocene
PE / year

6 HDPE Pipe
Constant New Developments
million tons P

4
 Infrastructure growth & renewal
Conventional PE
3
 Increasing packaging sophistication
2014 2016 2018 2020 2022 2024  Opportunity to replace import volumes

Sources: Nexant ChemSystems POPS Executive Report 2013, ICIS Pricing October 2014
PE technology solutions for long term success

A Dynamic Market
 Fast growing commodity market
UNIPOL™ PE Technology
gy
 Periods
P i d off PE price
i volatility
l tilit
 Feedstock advantaged competition  Safe, streamlined process design

Diverse
Di and
d Evolving
E l i Needs
N d  Largest pro
proven
en reactor capacities

 Cost-effective grades for large markets  Lowest investment & operating costs
 Specialtyy grades
g for premium markets
 Capability to capture new opportunities  Broadest product mix in single reactor

 Unparalleled catalyst development

Constant New Developments
 Track record of technology transfer
 Infrastructure growth & renewal
 Increasing packaging sophistication
 Opportunity to replace import volumes
 Univation Technologies & UNIPOL™ PE Process
Global Leader in PE Production

Global Presence of UNIPOL™ PE Process  Exclusive licensor of the UNIPOL™ PE Process

– >40 years operating experience
– >140 licensed UNIPOL™ PE Process lines
– Over 1/3 global HDPE/LLDPE market position

 The leader in operating & announced capacity

– >25 million tons operating capacity from 110 lines
– >33 lines currently in design / construction
– >2X larger than next closest competitor

2013 LL/HD Operating Capacity 2011-2013 LL/HD New Announced Capacity

25
ns PE / year

ns PE / year
10
20
8
15
6
million ton

million ton
10
other PE technologies 4
5 2

0 0

Source: Nexant ChemSystems POPS 2013, ICIS News and Univation Technologies internal assessment
UNIPOL™ PE Process
Simple, Streamlined Process Design

 Fewest pieces of major rotating equipment

 Reactor gas loop optimized to provide stable operation

 Technology enabling quick & efficient transitions

 Standard extrusion equipment for pelleting

PE

C2=
 No cyclone solid/liquid separation system required
 UNIPOL™ PE Process
Lowest Total Investment Costs

UNIPOL™ PE Process UNIPOL™ PE Process

vs. Other Gas Phase LLDPE Processes vs. Slurry Loop HDPE Processes

25
SD

SD
40
0
million US

million US
20
30
15

10 20

5 10

0 0

Other Other Slurry C Slurry

Process A Process B Process Process D
UNIPOL™ PE Gas Gas UNIPOL™ PE Loop Loop
Gas
Phase Gas
Phase SlurryA
Process SlurryB
Process
Process Process
PhaseA
Process PhaseB
Process Loop Loop

 Up to ~$45 million lower total investment cost

 Low investment cost leader for both LLDPE & HDPE production

 Lower
L overall
ll operating
ti costs
t vs. other
th gas phase
h & slurry
l loop
l technologies
t h l i

Graph Source: Nexant Chemsystems POPS Technology Report, 2012; Total Investment Costs, 400 KTA capacity plant
 UNIPOL™ PE Process
Technology leadership in largest proven capacity

 Preferred, proven industry leader for single line ≥400kta capacities

– 20 lines in operation ≥400kta capacities

– 16 lines in design/construction ≥400kta capacities

– Plants in operation with capacities up to 650kta

650 KTA

Other LL/HD Technologies Maximum Operating Capacities

0 KTA

0 KTA

0 KTA

240 KTA
370

320

300
Process A Process B Process C Process D
UNIPOL™ PE
G
Gas G
Gas Slurry
Sl Slurry
Sl
Process
Phase Phase Loop Tank

Graph Sources: Nexant Chemsystems POPS Executive Report, 2013

 UNIPOL™ PE Process
Delivers World-Class Operating Performance

UNIPOL™ PE Process HDPE/LLDPE Operating Performance

Licensee Total Monomer

% Ai
Aim-Grade
G d %O
Operating
ti Time
Ti
Example Ratio

Best 100.0 100.0 1.002

Top Quartile 99.3 99.2 1.006

 Outstanding operating performance across all key manufacturing metrics

 Most plants operate above original nameplate & maintain excellent performance

 Advanced premium technology runs at 5 – 15% higher rates vs. conventional catalysts
– XCAT™ Metallocene Catalysts

– ACCLAIM™ Advanced Chromium Catalysts

– PRODIGY™ Bimodal Catalysts

Sources: Univation information on UNIPOL™ PE operating line process performance (2012 – 2013)
Total Monomer Ratio (TMR): (ethylene + comonomer ) / total resin production
 UNIPOL™ PE Process
Broadest Product Capabilities in a Single Reactor

State-of-Art Catalysts
Metallocene
DIGY™

Pipe UCAT™ J Catalyst

PE80/PE100 Film/ Extrusion
Coating
Coat g XCAT™ Metallocene Catalyst
XCAT
PROD

XCAT™
ACCLAIM™ Unimodal Catalyst
Large Part
Blow Molding Rotomolding PRODIGY™ Bimodal Catalyst
CCLAIM™

Over 150 Resin Grades Offered

LLDPE
HDPE

HIC Blow
Hexene Film
Molding
AC

Full HD/LL Application Range

Injection Metallocene LLDPE

HD Film

AT™
Molding

UCA
C
Conventional
ti l LLDPE
UCAT™

Unimodal HDPE
Injection Butene
Molding Film
Bimodal HDPE
 Univation Technology Leadership
Extensive patent estate with wide-spread technology acceptance

HD & LL Patent Family Filing Activity

Univation Technologies  Leading patent portfolio
 >12,000 patent filings provide competitive FTO advantage

 Coverage across HD, LL, MCN platforms

46%  IP includes products, process & catalysts technologies

 Leading advanced technology licensor

Univation Licensed  Advanced ACCLAIM™, PRODIGY™ & XCAT™ Catalysts

Catalyst Technology  Since 2005, 82% customers licensed advanced technologies
2005 – Present
• >14 million tons licensed advanced catalyst capacity

• ~50% licensees select multiple advanced technologies

Univation
50%
82%
Advanced
82%

IP Source: UT 3rd party IP benchmarking study

Note: Univation patent filing data reflects Univation’s licensable patent portfolio
 XCAT™ Metallocene Catalysts
Providing World-Class Metallocene Leadership

Global Metallocene
Producing Capacity  India: ~170KTA @ >10% AAGR (‘14 – ’24)

– Dependence on imported metallocene LLDPE to meet demand

– Global metallocene LLDPE ~5000KTA @ >8.5% AAGR (‘14 – ’24)
other Univation
technologies
 XCAT™ Metallocene Catalyst Technology

– >35%
35% off totall metallocene
ll LLDPE marketplace
k l

– >19 yrs commercial experience

– >16,000KT cumulative commercial metallocene LLDPE resin

Global Licensed Metallocene
Technology Capacity
 Univation success with XCAT™ Catalyst

other – ~75% of licensed metallocene capacity

technologies
g
– >10 producing commercial reactors

– Licensee & UT parent lines: 100 - 650KTA

Univation

Sources: Townsend Solutions HAO LLPDE / mLLDPE 2012, Nexant Chemsytems POPS 2013, Nexant Global Metallocene Review 2014 & Univation estimates
UNIPOL™ PE Process
Advanced
Quick Technology
& seamless for Faster
product transitions Product Transitions
UNIPOL™ PE Resin Product
Wheel Example  Full HDPE/LLDPE product wheel capability

Bimodal LLDPE
PE100 Injection/
Roto-
 PREMIER™ APC+ optimizes running grade transitions
Molding
– Transition recipes pre-loaded for all UNIPOL™ PE Resin grades
Unimodal
HDPE
Film C4 – Minimizes off-grade with transitional resin segregation
LLDPE
Film
C6
LLDPE
Film
 Quick Transition Technology enables faster transitions
– Transition time reduced up to 60%
APC+ Advance Control
Transition Optimizer – Selected by 15 licensees since 2009
< 4 hrs
MI transition
MI
aim-grade  Efficient product transitions achieved

Start – Minimizes transition time enabling up to 99.5% aim-grade

Density

Lab MI MI Lower Spec

Production time (hrs)MI Upper Spec
Target MI Lab Density Target Density
Univation Technologies
Extensive Technology Support Across UNIPOL™ PE Plant Lifetime

Comprehensive Start-Up Technology Technology Innovation

Training Support Improvements Transfer

 Life-long on-site support from plant commissioning through advanced catalyst implementation

 Industry leading safety performance with >2,400 reactor-years of safe operations

Univation Technologies
Delivering Strategic Solutions for the Indian PE Producer

UNIPOL™ PE Technology

 Safe, streamlined process design

 Largest proven reactor capacities

 Lowest investment & operating costs
 Broadest product mix in single reactor
 Unparalleled catalyst development
 Proven record of technology transfer
 SM

P
Proven to
t deliver.
d li D
Designed
i d tto adapt.
d t