Borshape Packaging Solutions

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1 Borshape Packaging Solutions Kuhne Open House May 2011 Juha Yli-Peltola Application Development Engineer

Borealis at a Glance Leading provider of chemical and

More than 50 years of experience Unique Borstar technology to

needs 5,200 employees in over 20 countries Ownership 64% IPIC

2 Borealis at a Glance Leading provider of chemical and innovative plastics solutions that create value for society More than 50 years of experience Unique Borstar technology to develop polyolefin solutions that are tailored to customers needs 5,200 employees in over 20 countries Ownership 64% IPIC / 36% OMV Joint venture in Middle East and Asia: Borouge (Abu Dhabi) 2

Borealis and Borouge Locations Borealis locations Production Plants: Austria, Belgium, Brazil, Finland, Germany, Italy, Sweden, United States Innovation Centres: Austria, Finland, Sweden Customer

3 Borealis and Borouge Locations Borealis locations Production Plants: Austria, Belgium, Brazil, Finland, Germany, Italy, Sweden, United States Innovation Centres: Austria, Finland, Sweden Customer Service Centres: Abu Dhabi, Austria, Belgium, Finland, Germany, Italy, Russia, Singapore, Turkey, United States Head Office: Austria Borouge locations Production Plant: Ruwais (UAE) Customer Service Centres: Abu Dhabi (UAE), China, India, Singapore Sales Offices: Abu Dhabi (UAE), Australia, China, Lebanon, New Zealand, Saudi Arabia Head Offices: Abu Dhabi (UAE), Singapore 3

4 Content Main challenges for film industry Borealis packaging solutions Borshape Borshape frozen food film in Kuhne high neck process Borshape end uses 4

5 Challenges in Film Industry Major trends that will drive future innovation needs. Food Safety & Freshness - 50% of food is today wasted due to packaging, its size or logistics - Barriers & tight seals Sustainability - Renewable feedstock resources - Full life cycle measures Source reduction - Down gauging / light weighting - Improved logistics - Recycling Convenience - Easy to handle - Optics / soft touch - Retorting & preservation Efficiency & Simplification - Substitution of expensive multilayer packaging structures - Savings of processing steps - Improved processability / energy reduction - Simplified recipes Access to medical treatment - Emerging countries need medical treatment global supply Speed of Innovation - New features emerging - Being different and better vs. others Packaging performance Sustainability Cost effectiveness 5

Borealis packaging solutions The building blocks Product offer BorShape

application development experts Film Innovation Centre in Linz Value

converting machine producers, packaging machine producers, packers, end

6 Borealis packaging solutions The building blocks Product offer BorShape BorLite Borstar PP Blown LD, HD, MD Film expertise Dedicated application development experts Film Innovation Centre in Linz Value Chain integration Cooperation with key stakeholders: converters, converting machine producers, packaging machine producers, packers, end users Value Generation across the value chain Examples of Borealis Packaging Solutions 6

7 Borealis coex solutions Innovative recipes for flexible packaging! Tailored stiffness/impact properties!! High clarity and gloss or matt surface Excellent sealing & high strength A B A B A B Pick n choose Borstar, Borshape, LDPE Borclear, Borpact, Borsoft A C B 7

85 1.9 MFR21 g/10min 18 42 Machinery type PO

8 BorShapeTM High Alpha Olefin Terpolymer BorShape TM FX1001 FX1002 MFR5 g/10min MFR21 g/10min Machinery type PO multilayer Barrier multilayer 3 & 5 layer > 5 layer 8

9 Rheology Comparison 9

10 Comparison of Processing Conditions Temperature setting 210 C Die gap 1.5 BUR 1:3 FLH ~3DD Film thickness 40µm 10

11 Borshape FX1001 vs Borstar FB µm film 11

12 Borshape FX1002 vs Borstar FB

13 Stiffness/toughness Balance 13

14 Borshape FX1001 in Kuhne long neck process 35 µm film for frozen food packaging A (25%): mlldpe + LDPE +30% B (50%): FX white MB Borshape rich film allows high output rates in high neck process Toughness is improved, other mechanical properties are kept on same level +60% 14

15 Technical Benefits for Boshape Beneficial physical properties Superior toughness/stiffness balance Best puncture and impact at -40 C Matt/Frosted surface (COF/Design) High hot tack and sealing strength Low gel level Low extractable Low taste and odour Full approvals in food and medial pkg Excellent Processability Processability close to LDPE Improved production regularity No melt fracture with narrow die gap Mono, Co-extrusion and blending 15

16 What Does it Mean for the Value Chain? Converter Packer Brand Owner End User PERFORMANCE High throughput; Stable film production (reduce bubble breaks, good thickness distribution); Higher packaging speed; High packaging integrity; Package content preservation; Improved convenience SUSTAINABILITY Lower energy consumption Reduced scrap rate Lightweighting potential of > 20% Recyclable Green image Cost effectiveness High operability rates; Higher volume/extruder; Reduced production cost Reduced cost of packaging/ton of packed product; Lower scrap rates; Reduced cost of packaging Reduced green dot fees Brand loyalty 16

17 BorShape end uses White matt surface film 40 µm Application examples Frozen food; mail bags; Liquid packaging. A (25%) Borstar FB4230 Matt distinct look with Borstar surface layer; Low CoF surface for easy filling. B (50%) BorShape FX White MB For toughness, stiffness, hot tack and processability C (25%) mlld(70%) + FT5236 (30%) Sealing layer 17

18 Borshape end uses White film 100 µm Application examples Lamination (ex: Pet Food) A (25%) FT5230 For CoF control, gel free surface and cost optimisation B (50%) BorShape FX White MB For toughness, stiffness, web planarity and high reel quality C (25%) mlld(70%) + FT5230 (30%) Sealing layer and optimised CoF 18

properties (haze and gloss) B (60%) BorShape FX1001 For toughness, stiffness, hot tack

19 Borshape end uses Transparent film - 40 µm Application examples Consumer packaging (Hygiene overwrap; produce bags) A (20%) mlld(90%) + FT5236 (10%) For good optical properties (haze and gloss) B (60%) BorShape FX1001 For toughness, stiffness, hot tack and processability A (20%) mlld(90%) + FT5236 (10%) Sealing layer and good optical properties 19

good optical properties (gloss) and sealing B (60%) BorShape FX1001(60%)+BA110CF(40%) For

20 Borshape end uses Transparent stiff film - 40 µm Application examples Consumer packaging (ex: Diaper packaging; FFS packaging); lamination film (pouches) A (20%) mlld(90%) + FT5236 (10%) For good optical properties (gloss) and sealing B (60%) BorShape FX1001(60%)+BA110CF(40%) For toughness, stiffness, hot tack and processability C (20%) FT5236 For CoF control and cost optimisation 20

Conclusion Packaging performance Sustainability Cost Effectiveness Borshape FX1001 and FX1002 - new family of HAO terpolymers

21 Conclusion Packaging performance Sustainability Cost Effectiveness Borshape FX1001 and FX new family of HAO terpolymers Best-in-class processing Superior stiffness/toughness balance Benefits for whole value chain Various end use oppportunities 21

22 End of presentation Juha Yli-Peltola The information contained herein is to our knowledge accurate and reliable as of the date of publication. Borealis extends no warranties and makes no representations as to the accuracy or completeness of the information contained herein, and assumes no responsibility regarding the consequences of its use or for any printing errors. 22

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