News release

June 22, 2010

P 293/10e
Sabine Philipp
Phone: +49 (0)621 60-43348
Fax: +49 (0)621 60-49497
sabine.philipp@basf.com

K 2010 Trade press conference

June 22 and 23, 2010 in Frankenthal, Germany

More flexibility for shrink films

New two-component concept for SB copolymers

BASF SE
Presentation by Dr. Daniel Wagner 67056 Ludwigshafen
Phone: +49 (0)621 60-0
Product Development SBC Polymers http://www.basf.de
Communications Plastics
Phone: +49 (0)621 60-22142
BASF SE, Ludwigshafen, Germany Fax: +49 (0)621 60-49497
http://www.plasticsportal.eu
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Launched onto the market three years ago, shrink films based on
Styrolux® HS 70 have now become well-established in the European
sleeve market. Compared to conventional mixtures of SBC (styrene
butadiene block copolymer) and PS (polystyrene), this material stands
out for its very high final shrinkage of more than 70 percent.

BASF researchers have now developed even further improved Styrolux

grades with an eye towards expanding the product line for this
application. They have done so in response to the industry’s desire for
stiffer films that allow even larger, more complex objects to be shrink-
labeled and the thickness of the sleeve film to be further reduced.

Two-component system for more individualized films

A two-component concept that differs from Styrolux HS 70 is being
implemented for the first time: with Styrolux T (T = toughness) and
Styrolux S (S = stiffness), this concept offers two new Styrolux grades
with which the desired property profile of the shrink film can be set
when the processor blends them, and only once they are put together
do they yield the film material “Styrolux T/S”.

This concept has already received very positive first feedback from film
manufacturers. The combination of the two newly developed Styrolux
grades now allows manufacturers themselves to adapt the film
properties to their specific requirements – a first in the realm of shrink
sleeves. BASF experts provide the requisite assistance so that film
manufacturers can fully exploit the potential of this development.

Natural shrinkage even lower: Higher storage stability

In the blended T/S products, the T component provides basic
properties such as toughness and good stretchability, while the S
component improves the stiffness of the film as well as its storage
stability. The latter is determined by the so-called natural shrinkage that
the material undergoes after the stretching procedure. This value is
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ascertained in a 21-day storage test at 40 degrees Celsius [104

degrees Fahrenheit]. A one-to-one mixture of Styrolux T and Styrolux
S, for instance, yields a film that is 25 to 30 percent stiffer and that
exhibits a natural shrinkage that is about 50 percent less than a
corresponding film made of Styrolux HS 70.

Greater stiffness – high final shrinkage – lower gel content

Films made on the basis of Styrolux T/S exhibit an unparallel level of
transparency and brilliance. Like Styrolux HS 70, Styrolux T/S films are
particularly well-suited for the technology of transverse stretching (TD =
transverse direction). TD films allow shapes having widely varying radii
or unusual designs to be shrink-labeled by sleeve technology.

The new product formulation has succeeded in retaining the familiar,

well balanced shrinkage curve of Styrolux HS 70, along with a very high
final shrinkage of more than 70 percent at 90 degrees Celsius [194
degrees Fahrenheit]. The uniform, moderate rise of the shrinkage curve
permits well-controlled shrink-labeling over a very broad processing
range, whereas the high final shrinkage makes it possible to decorate
even the most complex of shapes.

Like Styrolux HS 70, the T/S film products stand out for very high
efficiency and processing reliability. Owing to the relatively low density,
approximately 30 percent more film per kilogram of plastic can be
produced than, for example, with PET-G. Moreover, when provided
with higher percentages of the S component, the Styrolux T/S films can
reach the level of stiffness of PET shrink films.

The two-component concept and the systematic adjustability of the film

properties in terms of toughness and stiffness have enabled BASF to
respond to customer demands, to their system concepts and to the
brand owners, all of which vary considerably from one region to
another.
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The gel count of Styrolux HS 70, which is already very low, has been
reduced even further in the films based on the innovative Styrolux T
and S components, thanks to their high thermal stability. T/S films thus
meet the requirements of even the most demanding markets.

New perspectives for MD technology

The new Styrolux T/S films not only are suitable for transverse
stretching processes but, as so-called MD films, they also yield high-
quality products. Stretching films in the extrusion direction (machine
direction = MD) as is done in band labeling technology is simpler from
the standpoint of the machinery employed and thus correspondingly
cheaper. With the roll-on-shrink-on method – ROSO for short – the film
label is wrapped around the bottle in the form of a band, fixed by glue
and then shrunk onto the bottle under the effect of heat.

When it comes to the products, the ROSO method used to be limited

almost exclusively to polypropylene (PP) and to just a few suppliers.
The low shrinkage of classic PP-MD shrink films – 20 percent at the
maximum at temperatures up to 100 degrees Celsius [212 degrees
Fahrenheit] – restricted the use of this method to bottles with simple
shapes. Due to its low shrinkage, a PP-MD film cannot tightly enough
hug the contour of complex shapes that have greatly varying radii.
Creases are formed and the band label does not adhere properly.

The new T/S shrink-film products, but also the proven Styrolux HS 70
and the highly transparent Styrolux grade 3G 46 first introduced onto
the market in 2006, open up completely new perspectives for the MD
method. These films can achieve shrinkage levels of as much as 45
percent at temperatures of up to 100 degrees Celsius [212 degrees
Fahrenheit], and even up to 65 percent at temperatures between 100
and 120 degrees Celsius [212 to 248 degrees Fahrenheit]. In this
context, shrink films based on Styrolux 3G 46, which only reach their
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maximum shrinkage at a temperature above 100 degrees Celsius [212

degrees Fahrenheit], are especially easy to process in hot-air shrink
tunnels. MD films on the basis of Styrolux HS 70 or of the new T/S
components already attain their highest shrinkage at lower
temperatures. This is why they lend themselves for shrink-labeling in
steam tunnels.

The significantly higher final shrinkage of the MD Styrolux films means

that it is also possible to tightly shrink-label complex shapes such as
contoured bottles that have large radius differences, a realm that up
until now had been the exclusive domain of TD sleeve films.

In cooperation with leading machine and film manufacturers, it could be

demonstrated that Styrolux MD films run very smoothly on existing
labeling stations that currently work almost exclusively with ROSO-PP
films. Moreover, newer methods such as the hot-sealing of the seams
on laser equipment made by the Italian company Sacmi or the hot bar
sealing method of Alfa Sidel all yield very good results with Styrolux MD
films.

Attractive market segment with growth potential

In view of the current global market volume of more than 3.5 million
square meters and estimated annual growth rates of well over 10
percent for the coming years, shrink films are an extremely attractive
segment of the packaging market for consumer goods. More than 80
percent of these films are used today in high-quality packaging for food
items such as dairy products, soft drinks and alcoholic beverages. In
addition, growing numbers of household articles, cosmetics and
pharmaceutical packaging are being shrink-labeled.

The driving force behind this dynamic market development are the
rising expectations in terms of product differentiation, branding and the
scope of information provided to consumers, as well as the wish for an
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ever more sophisticated presentation of the final-consumer products at

the point-of-sale.

Thanks to BASF’s newly developed two-component product system

Styrolux T and S, which pays close attention to customers’ demand for
higher flexibility and which can be adapted to the various shrink-
labeling technologies, the company sees very good opportunities to
contribute to the growth of this segment. The two-component concept,
which had not been available on the market up until now, sets new
quality standards and taps into new application possibilities for sleeves
and particularly for ROSO films.

BASF anticipates that it will already be exhibiting the first items shrink-
labeled with Styrolux T/S film at the 2010 K show. Starting in early
2011, these two sleeve film components are intended to become
available in commercial quantities throughout the world.