Simpler, Lower Cost, Better Performing CASE Formulas with Harmonite Powders. Detroit Rubber Group 2018 Fall Technical Meeting November 28, 2018

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1 Simpler, Lower Cost, Better Performing CASE Formulas with Harmonite Powders Detroit Rubber Group 2018 Fall Technical Meeting November 28, 2018

2 Presentation Outline Overview The Dupps Company & RSS Applications & Benefits Harmonite Physical & Chemical Characteristics Harmonite in Rubber Compounding Summary Results from R&D study on Harmonite use in high volume industrial rubber compounds EPDM for hose covers and gaskets Nitrile rubber for floor mats SBR/BR blend for Grade 2 conveyor covers 2

3 The Dupps Company The Tools to Build a Sustainable World Values driven 83 year old fourth generation family owned business Capital process equipment and processing plants Design, Manufacture, Installation, Parts & Service, Consulting Thermal / Mechanical processing expertise Primary Markets Rendering Oil Seed Processing Fishmeal Pulp & Paper 3

4 RSS, LLC. Rethink, Solve, Sustain 2012 Dupps acquires Harmonite process and methods patents based in part, on Dupps equipment technology 2013 Dupps forms RSS Subsidiary Company: builds pilot demonstration unit, begins plant design, layout and site acquisition ,000 ton/yr manufacturing plant built, installed 2015 Plant commissioned & commercial market development begins 4

5 Broad Applicability in Diverse Applications Rubber mats Roofing Mastics Butyl HMPSA s Sealants SBS & APP mod-bit membranes and adhesives Rubber ramps, wheel stops, sign bases, etc. Insulating / sound deadening 5 cork tape

6 General Incorporation Guidelines Application Typical Incorporation rates (wt%) ASTM C-990 Sealants 25 60% Roofing Cements / Mastics >30% SBS & APP Mod Bit Roofing Membranes 2 30% Butyl Flashing Tape Adhesive 20 45% Cope Seals 15 25% Rubber Compounding 4 50% Cold Patch Additive 5 10% Seal Coats and Crack Fillers 10 25% 6

7 Benefits Simpler Formulas Simultaneously replace / reduce consumption of multiple, and often higher cost ingredients Gilsonite, petroleum pitch, process oils, plasticizers, polymers, tackifying resins, TiO 2, talc, CaCO 3, powdered coal, hard & soft clays, etc. Better Performing Formulas Shown to improve key characteristics and results in multiple applications Increase/improve: tack, rubber-to-metal adhesion, internal strength, elongation, abrasion resistance, viscosity, hardness, durability, shorten cure times, etc. Better Processing Operations friendly, free flowing powder blends readily with other ingredients and acts as a process aid to shorten mixing times, lower power consumption and increase throughput Lower Total Cost in use Reduced formula cost Lower operating cost Unique, multifunctional & versatile base material or performance additive & process aid 7

8 Harmonite Engineered material manufactured in a patented high temperature thermal/mechanical process Finely divided, free flowing, organic-coated / inorganic composite powder 25-30% organic content (depending on Harmonite grade) High percentage of strongly polar resin/asphaltene compounds that exhibit cross-linking and addition type chemical reactions (hydrogen bonding, Van der Waals) Exhibits polymeric behavior Soluble in aromatics and longer straight chain hydrocarbons and insoluble in alcohols and water Sticky by nature 8

9 Particle Morphology Particle Count Distribution* 90% <33 µm 50% < 14 µm 10% < 5 µm *Equivalent circular diameter via Morphologi G3S image analysis Harmonite 70 Tacky characteristic shows smaller particles clinging to each other in free flowing physical powder. Readily disperses and solvates smaller particles in aromatic solvents & aromatic or naphthenic process oils 9

10 Rubber Compounding Phase 1 R&D Summary Phase 2 R&D Summary HARMONITE IN USE 10

11 Harmonite in Rubber Compounding Phase 1 3 rd Party Certified Laboratory R&D Project Objective create formulas using Harmonite powders & determine the viability in high volume industrial rubber compounds EPDM for Hose Covers Nitrile for Floor Mats SBR/BR blend for Grade 2 Conveyor Covers Three high-end Control Formulas were used as a basis from which to compare properties against four different Harmonite formulas for each rubber compound Harmonite was used reduce/replace soft clay, hard clay and/or Austin Black powdered coal in the control formulas Harmonite was shown to be an effective multi-functional processing aid / functional filler with lots of upside, and very little downside 11

12 Harmonite in Rubber Compounding Phase 1 Harmonite Formulas Reduced Mixing Time & Power Consumption compared to control formulas Mixing Time (minutes) EPDM 23-50% shorter Nitrile 21-28% shorter SBR/BR blend 10-17% shorter Reduced Mixing Time Impact* (additional operating capacity) Integrated Power Consumption Reduced Power Consumption Impact 460 1,000 hrs/yr 20-36% lower $15 27K/yr savings hrs/yr 25-30% lower $16 19K/yr savings hrs/yr 10-25% lower $6 16K/yr savings *Basis 2,000 hours/per year operation. Increased capacity based on batch mixing time only. Energy savings based on $.05/KWhr. Tests were completed on a 1.6L tangential rotor mixer and actual plant results are likely to be different based on specific mixer configuration and plant set-up and operation. R&D study & early customer feedback suggests ability to increase plant throughput/ capacity utilization and lower operating costs simultaneously when using Harmonite 12

13 Harmonite in Rubber Compounding Phase 1 Harmonite had a Plasticizing effect on all three Control Formulas Shorter mix time and lower power consumption indicates that Harmonite may be acting as a Compatibilizing Agent that improves homogenization and/or dispersion of materials R&D study and early adopter feedback, indicates that Harmonite works as a Processing Aid and the potential exists to reduce consumption of more expensive plasticizers as well as other ingredients & fillers. 13

14 Harmonite in Rubber Compounding Phase 1 Summary Un-aged comparisons of Harmonite relative to control formulas, March 2017 Test Report PN A PN B PN C Application Hose Covers Floor Mats Conveyor Belt Covers Elastomer EPDM Nitrile (34 ACN) SBR/BR blend Harmonite Soft Clay Austin Black (powdered coal) & Hard Austin Black (powdered coal) replaces Clay Compounding Mixing Time Shorter Shorter Shorter Power Lower Lower Lower Consumption Rheometer Data ScorchTime Slower Very little difference Very little difference Cure Time Slightly slower Very little difference Very little difference ML Lower Slightly higher Lower MH Lower Lower Lower Comments Plasticizing effect / Softening Effect Plasticizing Effect Mooney Viscosity Values are comparable Values are comparable Lower Mooney Scorch Increases scorch safety Decreases scorch safety Scorch safety is comparable Comments Has accelerating effect on cure system. Behavior not observed on rheometer. Physical Properties Shore A Durometer No change to slight softening effect Lower (softer) Values are comparable Tensile Lower Same for A. Lower for B, C, D All lower; Harmonite 70 > Harmonite 40 Elongation Lower Higher Harmonite 70 higher; Harmonite 40 lower Modulus Higher Lower significantly lower Tear Resistance Lower Lower slightly lower & smaller std deviation Specific Gravity Comparable Slightly higher slightly higher Compression Set Slightly higher Comparable comparable Comments Modulus increase may be due to Plasticizing Effect Plasticizing Effect 14 reinforcing effect or processing effect such as improved dispersion Note: Each elastomer system used a different type of cure system

15 Harmonite in Rubber Compounding Phase 2 Phase 2 Objectives Using the knowledge gained from Phase 1 select one compound for further study Improve properties of Harmonite formulas relative to Control formula Determine the ability of Harmonite to reduce consumption of Aromatic process oil / Plasticizer Determine formulation cost advantage Phase 2 Methodology SBR/BR blend for Grade 2 conveyor covers was chosen Modify control formula containing 219 PHR total of all ingredients Formula D-1 Replace powdered Coal at 20 PHR (9.1 wt%) Reduce Aromatic Process Oil 16% from 25 PHR (11.4 wt%) to 21 PHR (9.3 wt%) Replace with 30 PHR Harmonite -70 mesh (13.3 wt%) Resulting formula had 225 PHR ttl ingredients Formula D-2 Replace powdered Coal at 20 PHR (9.1 wt%) Reduce Aromatic Process Oil 32% from 25 PHR (11.4 wt%) to 17 PHR (7.7%) Replace with 30 PHR Harmonite -70 mesh (13.6 wt%) Resulting formula had 221 PHR ttl ingredients 15

16 Harmonite in Rubber Compounding Phase 2 Test Report Phase 1 Results for reference Phase 2 Compound D-2 Application Grade 2 Conveyor Belt Covers Grade 2 Conveyor Belt Covers Elastomer SBR/BR blend SBR/BR blend Harmonite replaces Austin Black (powdered coal) Austin Black (powdered coal) / reduce Sundex 790 (aromatic process oil / plasticizer) Compounding Mixing Time Significantly Shorter Same Power Consumption Significantly Lower Slightly Higher (~6%) Rheometer Data ScorchTime Very little difference Very little difference Cure Time Very little difference Very little difference ML Lower Comparable (a little lower) MH Lower Very little difference Comments Plasticizing Effect Cure curves comparable for all compounds tested Mooney Viscosity Lower Comparable Mooney Scorch Scorch safety is comparable Scorch safety is comparable; slightly longer in D-2 formula Physical Properties Shore A Durometer Values are comparable 62 (comparable) Tensile All lower; Harmonite 70 > Harmonite 40 2,114 psi (slightly lower) Elongation Harmonite 70 higher; Harmonite 40 lower 582% (comparable) Modulus significantly lower Slightly lower Tear Resistance slightly lower & smaller std deviation 209 lbf/in (slightly lower) Specific Gravity slightly higher 1.22 (slightly higher) Compression Set comparable 24.1% comparable Comments Plasticizing Effect Durometer & elongation comparable. Tensile and modulus slightly lower but much closer than Phase 1. Even with 8 phr less oil in D-2 the modulus is lower than control, indicating still has plasticizing effect. 16

17 Harmonite in Rubber Compounding Phase 2 Results Harmonite successfully replaced powdered coal & reduced aromatic process oil consumption by 32% Harmonite was estimated to reduce formula cost by $.02 - $.04/lb when equalized for specific gravity differences $324,000 estimated annual savings for a 1MM lb/mo operation Harmonite compounds narrowed the gap from Phase 1 properties. Phase 2 properties were comparable to control formula for Grade 2 Conveyor Cover formulas, and exhibited significantly better abrasion resistance 17

18 Harmonite Compounds Physical Properties* EPDM Nitrile SBR/BR blend Shore A Hardness Tensile (psi) 1,534 1,793 2,114 Elongation at break (%) % Modulus (psi) % Modulus (psi) % Modulus (psi) % Modulus (psi) Tear Strength (lbf/in) Compression Set (%) Harmonite 70 dosing 4-8 wt% - reduced soft clay content 8% - replaced powdered coal & hard clay *Typical properties from select Phase 1 & 2 experimental formulas 13.4% - replaced powdered coal, reduced aromatic process oil by 32% 18

19 Accelerated Aging Tests Summary Accelerated Aging Tests Harmonite vs. Control Formulas, May Better performing compound listed. Relative % Change in Physical Properties after being subjected to commonly used accelerated aging tests EPDM Hose covers/gaskets Nitrile Rubber Floor mats SBR/BR blend Conveyor Covers Heat Aged Properties 70 Hrs at 150 C 70 Hrs at 125 C 70 Hrs at 100 F Shore A Durometer Comparable Comparable Harmonite Tensile Strength Harmonite Harmonite Control Elongation Comparable Harmonite Control Fluid Immersion Ethlyene Glycol / Water 168 Hrs at 125 C Water 168 Hrs at 100 C - Shore A Durometer Harmonite Control Tensile Harmonite Control Elongation Harmonite Control Volume Harmonite Control Fluid Immersion #1 Oil 168 Hrs at 150 C #1 Oil 168 Hrs at 125 C - Shore A Durometer Control Harmonite Tensile Control Harmonite Elongation Control Harmonite Volume Control Comparable Staining ASTM D925-06e2 A ASTM D925-06e2 A - Comparable very slight staining. Control slightly better Equivalent no staining either compound Abrasion Resistance - - ASTM D A Harmonite 13% better 19

20 EU REACH Article 33 Compliant None of the constituents in Harmonite are currently listed on EU REACH Candidate List, Annex XIV, or Annex XVII (i.e., Substances of Very High Concern SVOC s) Additional lab analysis on phthalates, mercury, heavy metals, SVOC s & PAH s revealed that none exceeded REACH thresholds, and most were below the limits of detection There are no other downstream user communications obligations or restrictions associated with importation of Harmonite containing products into the EU 20

21 Oh by the way, if that s not enough. If using environmentally responsibly, sustainable ingredients is important to your business Then you should know Harmonite is a 100% post-consumer recycled, asbestos-free product that provides the opportunity to contribute to LEED credits and market the green aspect of your products 21

22 Thank you For more information please contact: Ken Thomas Director - Innovation & Marketing The Dupps Company PO Box 189 Germantown, OH (o) (m) kthomas@dupps.com