New challenges and opportunities for the industry

Transcription

1 New challenges and opportunities for the industry November 2014

2 HaloPolymer is 100% private company, committed to the fluorine business Established in Moscow in 2008 as a holding company that owns and manages two chemical production facilities with a 70-year history of production of fluoropolymers, refrigerants and other chemicals HaloPolymer is 100% private company Share of product line in Total Revenue of HP, % Fluoropolymers 49% Inorganic chemistry 37% Fluorocarbons HaloPolymer Trading Inc. is operating in US from 2012 Products are supplied to over 30 countries globally, fluoropolymer sales are export oriented Domestic and export sales Other chemicals 97% Fluorinated gases 3% 72% 28% Moscow Kirovo-Chepetsk Perm Fluoropolymers 45% 55% Domestic market Export market 2

3 HaloPolymer is a major Russian fluoropolymers and fluorocarbons producer Share of product line in Total Revenue of HP, 2013 Inorganic chemistry 37% 14% 49% Fluoropolymers Inorganic chemistry Fluorocarbons HaloPolymer is one of the largest producers of inorganic chemicals in Russia Inorganic products HP share of Russian market, 2013, % Caustic soda 12% Calcium chloride liquid (100%) 22% Calcium chloride granular 39% Hydrochloric acid 22% Fluoropolymers HaloPolymer produces about 13,000 tons of fluoropolymers and fluororubbers We have own science and research center for fluoropolymers and constantly invest in research and development: 3 new PTFE grades were launched in 2014 and delivered to the market 2nd largest European producer of PTFE HP is major Russian fluoropolymers and PTFE (80% of the market) producer Russian market is around 3% of the Global Fluorocarbons HaloPolymer s share of Russian market Refrigerant R-22, % : HaloPolymer will be exclusive Russian producer of fluorocarbons due to government regulation of the market 91% 78% 69% 80% 100% Sources: internal data 3

4 Production facilities have a significant upstream synergy HaloPolymer Perm Focused on fluorine chain along with hydrogen fluoride production Producer of PTFE compounds, R-14, R-318, R-125, R-blends and acid blends together with overall Group portfolio HaloPolymer Kirovo-Chepetsk Focused on chlorine and chloroform production Producer of FKM-rubbers, R- 218, R-350 and caustic soda together with overall Group portfolio 4

5 New challenges of the market oversupply and lack of growth Prices dynamic USD/t % 2% 1% Fluorspar acid grade price dynamic, USD/t PTFE prices dynamic, % % 7% % -4% 12% % -11% % 50% 40% 30% 20% 10% 0% -10% -20% Fluorspar world production Market growth Market volatility? 10 million t ,9 4,9 5,6 6,0 6,3 6,8 6,3 7,3 8,2 8,3 8,

6 To uncover a hidden potential of emerging markets is the most effective way of growth Current state Ways of growth Impact Organic growth Low global economic growth is predicted Development of new products In may cases new products will substitute existing ones Development of new applications Some new applications appears but there are niche rather than massive Uncover potential of emerging markets Lack of modern applications in developing countries Very low Low Low to Medium High 6

7 Fluoropolymers Fluorocarbons Even organic growth of fluoropolymers and fluorocarbons in Russia is attractive Value of Russian fluorocarbon market, thnd t, ,1 20,3 24,1 27, Value of trade items Forecast of trade items production Value of Russian fluoropolymers market, kt, ,6 4,1 5,5 7, Consumption volume Forecast 7

8 If hidden potential is uncovered, Russia may achieve far more growth in fluoropolymers Specific consumption of fluoropolymers, tons per bln USD of GDP, ,0 10,0 8,0 6,0 9,8 6,0 Consumption in Russia should increases by 11 thnd ton per year to achieve level of Western Europe 4,0 4,0 3,6 3,4 2,0 2,3 1,4 1,1 0,8 0,6 0,0 Rebublic of Korea Western Europe Japan USA China Taiwan Russia Mexico Canada India Despite Russia is one of the key producers of fluoropolymer, specific consumption below the same indicator in developed countries by 3 to 7 times 8

9 The structure of fluoropolymers consumption in comparison with US also illustrates a huge application difference Russia and USA fluoropolymer market structures PTFE 30% 80% PVDF 10% 26% FEP PVF 2% 7% 22% ETFE 5% 6% Other 2% 10% USA Russia 9

10 Market regulation Fluorocarbons market is another attractive case due to the next regulation step Fluorocarbons production in Russia, kt ,8 9,5 2,2 Restriction of R-22 production - 16 kt / year 21 13,9 Restriction of R-22 production - 7,2 kt / year 24,2 7,0 0, R-141b R-22 Other fluorocarbons 25 Restriction of R-22 production - 0,4 kt / year 10

11 Description HaloPolymer is ready to cooperate in order to maximize the overall value Supply Technological and production partnership Cooperation in application development Launch mutually profitable and stable supply channels Co-production within local facilities or joint development Bringing proven applications to the local market 11