New epoxy systems enabling styrene-free high-performance SMC manufacturing

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1 New epoxy systems enabling styrene-free high-performance SMC manufacturing Dr. Ian Swentek Application Development Engineer Current Trends in the Automotive Industry JEC World

2 Hexion is a Specialty Chemicals Company with a leading position in the development and production of systems, products and services for Weight reduction and Coatings in the Energy, Transportation and Construction markets at a glance $3.4 billion * 4300 people * ~60 production sites * *FY 16 Technology Platforms Epoxy Phenolics Versatic TM Acids Formaldehyde Automotive Structural and Exterior Composites Under The Hood parts Suspension components Brake pads E-Coat to Clear Coat Coatings JEC World

3 Hexion has global leadership positions across a broad range of technologies and industries Leading Market Positions Customer Base Base Epoxy Specialty Epoxy Interior Parts Epoxy Resins Global Phenolic Specialty Resins Global Versatic Acids & Derivatives Global Forest Product Resins Global Oilfield Proppant Resins Global LEADING MARKET POSITIONS IN MORE THAN 80% OF ITS REVENUE BASE JEC World

4 Hexion continues investing in innovation and collaboration with Automotive customers Duisburg, Germany London, ON, Canada St. Avold, France Hakusan, Japan R&D facility, Germany JEC World

5 Composites technology innovations offer the industry light-weighting at high build rates JEC World

6 Sheet Molding Compound (SMC) process is a cost efficient technology Very high volume production Industry capacity largely available Low scrap rate and potential use of recycled fibers Additional design degrees of freedom over continuous fiber technologies Flexibility towards resin chemistries and formulations Picture courtesy: Fraunhofer Project Centre for Composites Research JEC World

7 New epoxy systems suitable for production of high performance SMC EPIKOTE Resin TRAC EPIKURE Curing Agent TRAC HELOXY Additive TRAC EPIKOTE Resin TRAC EPIKOTE Resin TRAC EPIKURE Curing Agent TRAC HELOXY Additive TRAC Low viscosity, good fiber impregnation Higher T g, good demolding Recommended mix ratio 100:23:2-4 70:30:23:2-4 Recommended cure cycle C C C C Mix viscosity at 23 C DMA T g tanδ peak DIN ASTM E1640 ~7 000 ~ JEC World

8 Epoxy systems allow for styrene-free processing and low VOC automotive parts Standard vinylester SMC Low VOC vinylester SMC EPIKOTE TM Resin TRAC EPIKURE TM Curing Agent TRAC HELOXY Additive TRAC Total VOC (μg/g) > ** 9* VDA 278 * All organic emissions are below international short term exposure limits (STEL) and 8-hour total weight averages (TWA) ** SPE ACCE 2016 Low VOC/Low Odor SMC for Interior Applications JEC World

9 The low mixing viscosity enables good fiber wetting and high fiber loading JEC World

10 Mechanical properties have been measured systematically Example EP / EK / HA Fiber volume fraction [%] 50 DMA tanδ peak T g [ºC] 120 Tensile Flexural Modulus [GPa] 33 Strength [MPa] 190 Modulus [GPa] 38 Strength [MPa] 475 Notes: - 25mm fiber length, 15K carbon fibre - 50% mold charge coverage - Aligned & orthogonal properties averaged - Molding conditions available upon request - Hybrid/tailored systems with continuous fiber inlays (prepreg) are recommended for structural applications SMC charge alignment JEC World

11 Hexion epoxy SMC parts exhibit superior mechanical performance Hexion CFRP Competitive EP SMC Hexion GFRP Competitive hybrid SMC Competitive VE SMC JEC World

12 SMC is a cost efficient process due to net shape moulding without preforming step Component mixing SMC compounding SMC Cutting & moulding Pressing Part de-moulding Low Viscosity Low VOC and styrene free Good fibre wetting Potential use recycled fibre Fast maturation Low scrap rate Hybrid reinforcement Functionalization Short in mould cycle times Controlled flow Netshape Low shrinkage High strength/modulus Reproducibility JEC World

13 The viscosity behavior facilitates sheet forming, maturation and part molding JEC World

14 Hexion epoxy SMC is easily processed on existing SMC infrastructure JEC World

15 Hexion epoxy SMC is easily processed on existing SMC infrastructure JEC World

16 CFRP seat frame structure demonstrates good surface quality with completely filled ribs and bosses Hexion low viscosity epoxy for SMC with Mitsubishi 15k carbon fiber 45% fiber volume fraction Size: 55cm x 48cm x 10cm Weight: 766g 58% weight savings over comparable steel design Cure time: C JEC World

17 Epoxy CFRP with SMC technology for semi-structural and structural applications The Back seat inner component was selected as a demonstrator due to its representative geometry. The molding study was solely done to assess mold ability and compare productivity, waste and cost. Predicted optimized cycle time 170 sec (10s load, 150s cure cycle, 10s unload) Back inner & outer JEC World

18 Hexion epoxy CFRP with SMC technology is cost effective Resulting cost /kg weight saved: 8.6 $/kg versus steel TOOL SPECIFICATIONS Number of Cavities 2 Number of Actions in Tool 8 Molding Cy. Time 170 sec Tool Cost/Set $350 (000/set) Press Tonnage 800 tons PRODUCTION COST FACTORS Annual Production Volume 100 (000)/yr Product Lifetime 5 yrs Process Rejection Rate 3.0% Direct Wages (w/ benefits) $35.00 /hr Working Days/Yr 240 Working Hours/Day 15 Capital Recovery Rate 10.0% Capital Recovery Period 8 yrs Working Capital Period 4 months Price of Electricity $0.125 /KWh Fixed Overhead 25.0% Maintenance Cost 3.0% JEC World

19 Epoxy CFRP with SMC technology for a broad range of (semi-) structural applications > Seat structures > EV battery enclosures > Hood Inners > Rear & front floors > > > > > Spare wheel tubs > > > JEC World 2017 December 2,

20 Key takeaways Epoxy systems: Eliminate styrene monomer exposure and are low in VOC Epoxy SMC technology: Low viscosity epoxy for superior performance in (semi)-structural applications Barrier-to-entry: Epoxy SMC can be deployed on current equipment with minimal risk JEC World

21 Thank you! Innovation Built on Collaboration Your Partner in Composite Resin solutions Meet us at Booth G54 in Hall 6 Ian Swentek Application Development Engineer ian.swentek@hexion.com DISCLAIMER The information provided herein was believed by Hexion Inc. and its affiliated companies ("Hexion") to be accurate at the time of preparation or prepared from sources believed to be reliable, but it is the responsibility of the user to investigate and understand other pertinent sources of information, to comply with all laws and procedures applicable to the safe handling and use of the product and to determine the suitability of the product for its intended use. All products supplied by Hexion are subject to Hexion's terms and conditions of sale. HEXION MAKES NO WARRANTY, EXPRESS OR IMPLIED, CONCERNING THE PRODUCT OR THE MERCHANTABILITY OR FITNESS THEREOF FOR ANY PURPOSE OR CONCERNING THE ACCURACY OF ANY INFORMATION PROVIDED BY HEXION, except that the product shall conform to Hexion's specifications. Nothing contained herein constitutes an offer for the sale of any product Hexion Inc. All rights reserved. and denote trademarks owned or licensed by Hexion Inc. JEC World