CUSTOM COMPOUNDING & TOLLING BUSINESS UNIT. Ron Smolenski Business Unit Manager. Anne Lawson Technical Liaison Manager

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1 CUSTOM COMPOUNDING & TOLLING BUSINESS UNIT Ron Smolenski Business Unit Manager Anne Lawson Technical Liaison Manager

2 Mission Statement SACO AEI Polymers Custom Compounding and Tolling Business Unit is committed to manufacturing thermoplastic and thermoset compounds, concentrates and master batches for the industries we serve surpassing our customers expectations for value, service, technical assistance and quality. This will be accomplished by adherence to our corporate core values and exceptional quality management system that will focus on continuous improvement in the areas of safety, accuracy, cleanliness, efficiency, quality and compliance.

3 Core Values SACO AEI POLYMERS FOUNDATION IS OUR CORE VALUES REPRESENTING Mutual respect. Sustainable work place culture. Employee development. Commitment, as a team by engaging in openness, trust and accountability. Meet customer needs. Support long term customer and supplier partnerships. Good corporate citizenship. Entrepreneurial Spirit: We encourage an entrepreneurial spirit and personal responsibility, grounded in our core values, to benefit our people, customers and businesses.

4 Overview WHY CUSTOMERS CHOOSE OUR CUSTOM SERVICES Confidentiality and dependability. Dedicated team working as an extension of our customer s business. To Increase manufacturing capacity without incurring expansion costs. To produce and manage rationalized products. To enhance their product line with low volume (high margin) specialty compounds. To enable them to research new resin and additive combinations. To cost-effectively obtain small or large lots. To meet ever-shrinking lead time demands. To process exact formulation or develop custom compounds. Value Add: Formulation Support, Raws Management, Logistics, Non-QC R&D

5 CENTER OF EXCELLENCE I Custom Compounding & Tolling Overview COMPOUNDING EQUIPMENT & CAPABILITIES Twin Screw Extruders Composite Sheet Extrusion Farrell Mixers (FCM) Rail Siding Banbury Mixers Bulk storage Single Screw Extruders Ribbon Blenders Co-Kneaders Hershel Mixers High Filler Content Post Absorption Reactive Extrusion Post Blending Downstream Feeding Liquid Injection

6 CENTER OF EXCELLENCE I Custom Compounding & Tolling Overview CUSTOM FORMULATION PORTFOLIO PE EPM XLPE PS EVA SEBS PP TPE NYLON CPE EPDM PVC

7 CENTER OF EXCELLENCE I Custom Compounding & Tolling Overview TECHNICAL EQUIPMENT & CAPABILITIES Differential Scanning Calorimetry Dynamic Mechanical Analysis Thermal Gravimetric Analysis FTIR Spectroscopy Optical Microscopy X-Ray Fluorescence Brookfield Viscosity Melt Index Determination Rheological Properties Flame Test Capabilities

8 CENTER OF EXCELLENCE I Custom Compounding & Tolling Overview TECHNICAL EQUIPMENT & CAPABILITIES Oxygen Index Measurement Low Temperature Brittleness Impact Testing Tensile and Elongation Accelerated Aging Moisture Analysis Surface and Volume Resistivity Gas Chromatography L*a*b* Color Testing

9 Confidentiality PROTECTING CUSTOMER S INTELLECTUAL PROPERTY Technical Liaison Manager is a dedicated technical resource for our customers. He/she is the steward of customer formulations and/or trade secrets. Confidential customer information is never disseminated or shared outside the Business Unit. In the case of company technical services needed, only minimum information absolutely necessary to perform tests or analysis for the customer s benefit is shared. The BU has its own secure server and access to this information is limited.

10 Confidentiality PROTECTING CUSTOMER S INTELLECTUAL PROPERTY To prevent unauthorized analysis of customer compounds, internal controls have been set by the Technical Services Manager that limit access to samples and certain analytical lab equipment. All analytical technicians, chemists, engineers, managers and scientists are bound to a corporate confidentiality agreement. Intellectual property and its protection are the responsibility of top management at SACO AEI Polymers. Topics related to IP and confidentiality is an agenda topic discussed during Executive Management meetings chaired by the company s CEO. Value Add: Under SACO AEI Polymers ownership, we have never received a claim for breach of confidentiality or contract from any of our customers. We are also unaware of any breaches of confidentiality or contract issues in the 14 years prior to our ownership.

11 OUR GLOBAL TOLLING FACILITIES Our Custom Compounding & Tolling Locations Wisconsin Ohio England Malaysia 4 Plants on 3 Continents for Optimal Customer Service Quality System: ISO 9001:2008

12 CENTER OF EXCELLENCE I Custom Compounding & Tolling History of Our Technology OUR FACILITY IN AURORA, OH HAS BEEN OPERATING FOR 24 YEARS 2010 SACO AEI Polymers, Inc Eaton Corp 2000 Saint Gobain 1990 Furon Corp

13 Industries Served Industrial Film Consumer OEM Building & Construction Wire & Cable

14 Case Study #1 Situation Lost UL Rating A major wire and cable customer lost UL rating on a compound that was toll manufactured by a competitor of SACO AEI. After repeated failed attempts to resolve the issue with our competitor and a loss of millions of dollars in revenue, the customer turned to SACO AEI for assistance.

15 Case Study #1 Action The SACO AEI team sprung into action partnering with the customer s technical team to understand the issue and put an action plan in play to resolve the issue quickly. Our team of experts executed the plan flawlessly. Taking advantage of our superior lab and testing facilities, we screened a number of compounds and developed several options to present to the customer. The SACO AEI manufacturing team executed production trials on selected compounds allowing the customer to produce adequate quantities of wire to submit for testing.

16 Case Study #1 Result Regained UL Listing The customer reacquired their UL listing and were able to get a significant portion of their lost business back resulting in increased revenue.

17 Case Study #2 Situation Quality Defect A major film customer was experiencing quality issues with their product. Their product was a complex multi layer construction that was used for a very specialized and critical purpose. An unidentified contaminate was found between the layers resulting in a large quantity of nonconforming material at the customer s manufacturing site. The customer turned to SACO AEI for assistance.

18 Case Study #2 Action The SACO AEI analytical team received a number of samples of the defective film from the customer and methodically removed and analyzed each gel mass. The task was complex as the film had multiple layers consisting of differing compounds and constituents. A detailed report including FTIR, TGA and DSC analysis for each of the layers and the gel contaminates was prepared and submitted to the customer at no cost.

19 Case Study #2 Result Eliminated Defective Process Based on the results of the analysis, the customer was able to identify the source of the contamination and eliminate it from their process.

20 Case Study #3 Situation Technology & Service Issues A major wire and cable manufacturer was sole sourced with a specialty toll manufacturing company producing a heat sensitive and reactive compound that required an unusually narrow operating window for numerous process parameters. Their toll supplier had a series of quality issues that prevented the customer from meeting their delivery commitments resulting in lost orders and revenue. The customer had difficulty finding an alternate source capable of producing the product within specifications and ultimately turned to SACO AEI for assistance.

21 Case Study #3 Action The SACO AEI team developed a plan to perform a number of controlled production trials utilizing six sigma methodology and techniques to develop a process allowing us to manufacture the compound safely and meeting all customer requirements. The team worked with to customer to scale up production methodically to provide evidence that we could reliably and repeatedly supply their compound.

22 Case Study #3 Result Regained Lost Business The customer secured SACO AEI as a reliable and cost effective alternate source for their compound allowing them to cut costs as well as significantly reduce their business risk.

23 Leadership Team RON SMOLENSKI - BUSINESS UNIT MANAGER P&L and operational responsibility for the business unit. Management of the Aurora manufacturing facility. Member of the company s Executive Committee. BIO Over 30 years of engineering, manufacturing and business leadership experience in capital equipment manufacturing, polymer additives, rubber and plastics industries. Held senior level positions with Struktol Company of America, Performance Additives, Flow Polymers, LLC. and SACO AEI Polymers. BS Chemical Engineering Cleveland State University Lean Six Sigma Green Belt

24 Leadership Team ANNE LAWSON TECHNICAL LIAISON MANAGER Leads technical projects supporting the CC&T BU. Partners with customer s Technical Teams to assist with implementation of test protocols and development of specifications. Works with CC&T customers to identify and qualify alternate raw materials to improve profitability for the customer while serving as an independent technical resource for the BU providing a firewall protecting customer IP. Provides technical support to the commercial team during customer visits and discussions. BIO Over 20 years of R&D and Technical Service leadership experience in packaging, additives and plastics compounding industries. Held senior level positions with Graham Packaging, Struktol Company of America, Valtris Specialty Chemicals and SACO AEI Polymers. BS Chemistry Allegheny College and PhD Polymer Science University of Akron

25 Leadership Team BRIAN KIEHL QA MANAGER Manages QA and EHS functions. Manages and maintains ISO 9001:2008 Quality System Oversees company safety programs and initiatives. BIO Navy veteran with over 30 years of manufacturing and QA experience in the rubber and plastics industries holding positions with increasing responsibility with PolyOne, A. Schulman and SACO AEI Polymers. AS Manufacturing (Industrial Supervision) University of Akron Chemistry Lean Six Sigma Green Belt

26 Leadership Team DIANNA GEORGE CUSTOMER SERVICE MANAGER Manages customer service and scheduling. Responsible for Material control and manages shipping and receiving. BIO Over 30 years of experience in materials management, production control/scheduling and warehouse management.

27 Leadership Team DAVID RUSNAK PROCESS ENGINEER Responsible for process engineering, manufacturing trials, and continuous improvement initiatives. Conducts training of operators. BIO Over five years of increasing responsibility in the Polymer industry holding various positions in Manufacturing and QA with OMNOVA Solutions, Inc., PET Processors LLC, and SACO AEI Polymers. BS in Chemical Engineering (Polymer Specialization) University of Akron

28 Leadership Team CHRISTINE CONROY MATERIALS COORDINATOR Responsible for procurement of raw materials and packaging materials for production and R&D. Supplies corporate purchasing personnel with supplier selection data. Negotiates MRO and packaging pricing. BIO Over 30 years of experience in the Polymer Industry focused on purchasing, scheduling and materials control with PolyOne (24 years) and SACO AEI Polymers (8 years).

29 Leadership Team MARGARET CHIARELLA MRP DATA ANALYST Responsible for coordinating MRP (QAD) system and providing expert assistance to the Production Control Manager (PCM) in the areas of Customer Service, Materials Control, Vendor Communications, and Production Scheduling. BIO Over 20 years of experience working in the chemicals industry in a variety of areas including quality, supply chain and environmental compliance at companies such as Delphi and SACO AEI Polymers. Lean Six Sigma Green Belt

30 Leadership Team JEFF CLARK MECHANICAL ENGINEER Responsible for mechanical and facility engineering functions including capital projects. Acts as a consultant for maintenance leadership in repair and upkeep of key mechanical and electrical systems. Manages all outside services for facility maintenance. BIO Over 35 years of experience in maintenance and engineering functions including supervision for various industries including the bakery, printing and polymer processing industries. Associates Degree, Cuyahoga Community College

31 Contact Us Ron Smolenski Business Unit Manager 1395 Danner Drive Aurora, OH USA +1 (330) x 4024 office +1 (330) fax Ron.Smolenski@sacoaei.com Anne Lawson, PhD Technical Liaison Manager 1395 Danner Drive Aurora, OH USA +1 (330) x 4021 office +1 (330) fax Anne.Lawson@sacoaei.com

32 THANK YOU

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