Driving Growth Through Product Innovation

Transcription

1 Driving Growth Through Product Innovation Martijn Vogelzang General Manager, Licensing Basell Service Company B.V., a LyondellBasell company IndianOil Petrochemical Conclave Delhi, India, 16 March 2012

2 Outline Mega trends affect regional developments Growth driven by continuous process and catalyst innovation Some examples of how polyolefins serve evolution: Properties, application development and sustainability Prospects and future Fast facts on LyondellBasell lyondellbasell.com 2

3 Global megatrends shape our market segments Society Population increase, access to water, food availability & preservation, health Economy Infrastructure, communication, transportation Environment Climate change, new energy solutions, resource use reduction Our society is challenged with population increases, climate and economic changes which are creating unprecedented pressure on resource management lyondellbasell.com 3

4 Global polyolefins market and per capita use 2009 Global PP/PE 2009 Per Capita Use Of PP/PE Global demand 2009: 110 Million Metric Tons Other 21% North America 19% NA WE Western Europe 16% Asia Other Asia 44% kg / capita Asia Pacific per capita use of 13 kg is very low when compared to 47 kg and 45 kg in North America and Western Europe respectively - High potential for future growth Source: CMAI 2010 lyondellbasell.com 4

5 R&D is the engine for growth at LyondellBasell Combined and integrated catalyst, process and product development Product Process Catalyst R&D lyondellbasell.com 5

6 Triangle of successful innovation in polyolefins Combined and integrated catalyst, process and product development In recent decades polyolefin innovation targeted: Improved catalyst performance (improved yield, molecular design) Reduction in process energy consumption and investment cost Significant widening of molecular design capabilities and polymer performance, Resulting in: Improved material performance, Weight and energy reduction, and Improved versatility, durability and safety in use Replacement of traditional materials lyondellbasell.com 6

7 Polyolefin technology portfolio developments by initial commercialization PP and advanced materials platforms Spheripol Catalloy Polybutene-1 New developments Spherizone 1980 Lupotech T Hostalen bimodal 1980 Avant catalysts 1990 PE platforms Lupotech G Spherilene Hostalen ACP New developments Avant ZN Phthalate based Avant C Avant Z Avant M Avant ZN Diether based Avant ZN Succinate based New developments lyondellbasell.com 7

8 Global plastic capacity growth vs. conventional materials Index: 1970 = 100 Million tons Plastics Steel* Paper** EVA ABS PS PVC PP PE PP/PE~0.4 PP/PE~0.6 PP/PE~ PP/PE~ Source: *Stahl-Zentrum/International Iron and Steel Institute (IISI) Source: Tecnon Database lyondellbasell.com 8

9 The impact of plastics on energy consumption and CO 2 emissions Production Use End of life CO 2 CO 2 CO 2 Energy Energy Energy Raw materials Products Packaging Housing Transportation Recycle / Energy conversion Improved production efficiency Production emissions reduction Source: PlasticsEurope 2009 Improved product design with plastics Lighter, more efficient products with plastics Food preservation Reduced landfilling Recycling operations Energy reclamation lyondellbasell.com 9

10 Hostalen ACP HDPE selected for pipes: continuous process/product/application development Continuous pipe resin technology improvements result in stronger and thinner piping Compared to the 1950s, HDPE pipes now use ~ 50% less material Decrease in HDPE pipe wall thickness* 46 mm 38 mm 24 mm Celebrating 50 years of Hostalen HDPE in pressure pipes PE63 1 st Generation 2 nd Generation 3 rd Generation Year PE80 PE * Equivalent hydraulic pipe diameter 400 mm lyondellbasell.com 10

11 kg CO 2 / kg product HDPE pipes have gradually replaced traditional materials: C-footprint HDPE gas pipes 2,0 0,0-2,0-4,0-6,0-8,0-10,0-12,0 Savings through replacement of other materials 0,3 kg CO2 from Resource prod. Oil/naphtha, gas 0,9 kg CO2 from Cracking Ethylen 0,4 kg CO2 from Polymerisation HDPE 0,4 kg CO2 from Pipe extrusion HDPE pipe -11 kg CO2 from Benefit of saved prod.+waste-co2 of alternative materials -0,3 kg CO2 as Net effect of recycling/recovery Feedstock Olefins Polyolefins Converters Consumers Recycle Recover Carbon footprint in total lifecycle = -9,3 kg CO 2 / kg product Source: GUA (Gesellschaft für umfassende Analysen) lyondellbasell.com 11

12 Evolution of PP usage in automotive: bumper 1979 Fiat Ritmo Bumper Technical Data: - Weight: kg Resisting to a 4 km/h -30 C Improved Processability: design of more complex structures 2006 Fiat Grande Punto Mechanical properties: Reduction of thickness & weight (40%), enhanced safety Bumper Technical Data: - Weight kg 3.5 Resisting to a 7 km/h -30 C Zero Gap, Good aesthetics lyondellbasell.com 12

13 kg CO 2 / kg product C-Footprint: PP automotive bumpers 4,0 2,0 0,0-2,0 Carbon footprint in total life-cycle = -4,6 kg CO 2 / kg product -4,0-6,0-8,0 0,3 kg CO2 from Resource prod. Oil/naphtha, gas 0,9 kg CO2 from Cracking Propylen 0,5 kg CO2 from Polymerisation PP 2,2 kg CO2 from Injection moulding PP injection moulding -8,7 kg CO2 from Benefit of substitution of heavier materials (saved prod.+waste-co2 + saved fuel) 0,2 kg CO2 as Net effect of recycling/recovery -10,0 Feedstock Olefins Polyolefins Converters Consumers Recycle Recover Source: GUA (Gesellschaft für umfassende Analysen) lyondellbasell.com 13

14 Penetration/replacement rate (% tot. Market) Advances in transportation: From metal to PE plastic fuel tanks and to new car concept battery train EU NAFTA Asia Japan China HDPE Plastic Fuel tank Metal fuel tank Year 2010 Electric car Battery train? 2030 Lupolen Spherizone Hostalen PP lyondellbasell.com 14

15 Our polymers save transportation weight and fuel Plastic packaging weight is significantly lower than glass or metal alternatives On average, packaging contributes only 1% to 3% of the packaged product weight : 200 g cheese uses 2g of plastic film 1.5 liter drink bottle uses 35g of packaging GLASS JARS: 36% IS PACKAGING PLASTIC POUCHES: 3.56% IS PACKAGING lyondellbasell.com 15

16 Tin Can Replacement by Rigid Polyolefin Packaging o Packaging Benefits with Polyolefins: Transparency Ease of use: Resealable, light, can be frozen High flexibility/possibilities in term of shapes Crush, tear and drop resistant Microwave heating Safer (no sharp edges when open) Lower density than metal More labeling/customization possibilities/ possibilities Squeezable: Adapts to product needs Cost reduction Lower production costs/transport energy footprint Recycling, energy reclamation lyondellbasell.com 16

17 46,4 Mill. t incl. Non-substitutable plastic products Alternative materials All plastic products Alternative materials (incl. Non-subst. plastics) All plastic products Alternative materials (incl. Non-subst. plastics) Environmental benefits of plastics vs. alternative materials Total mass for same funct. units x 3,7 144 Mill t/a Energy consumption in total life cycle +46% Mill GJ/a Mill GJ/a GHG emissions in total life cycle +50% 240 Mill t/a 360 Mill t/a 39 Mill t/a Subst. Plastics Source Denkstatt 2009 (EU27+2) lyondellbasell.com 17

18 CO2-Balance Plastics Market "Carbon balance" Av. changes until 2020 of EU27+2 plastics market Mt CO2-equ. Mt CO2-equ. Mt CO2-equ. Production ton at Production production increase (2% p.a.) 47 increased material efficiency % PE from renewable resources? -6 Effects of recycling/recovery/disposal -1 at -6 Production to to +19 Exemplary use effects: Saves over 9 tons throughout the lifecycle substitution of less efficient materials -43 to to fuel savings insulation -540 to to prevented food losses -100 to to wind power rotors & solar panels to ton Saves over 15 tons throughout the lifecycle Total carbon balance -600 to to Ratio (Use+Recovery) vs. Production -5 to -9-9 to -15 Source: Plastics Europe lyondellbasell.com 18

19 Conclusions Megatrends require novel technologies and new approaches to development New polyolefins offer options for sustainable developments Innovation is a joint effort and requires a strong customer culture Technology is key to driving growth!! lyondellbasell.com 19

20 LyondellBasell is One of the world s largest olefins, polyolefins, chemicals and refining companies with revenues in the range of $50 billion The global leader in polyolefins technology, production and marketing A pioneer in propylene oxide and derivatives A producer of fuels and refined products, including biofuels Dedicated to ongoing research and development programs that meet the ever-changing requirements of our customers, including the creation of new catalysts, processes and products Participation in 16 significant manufacturing joint ventures, 11 of which are outside of Western Europe and the United States, primarily in regions that have cost-advantaged raw materials or high-growth rates lyondellbasell.com 20

21 World-Class Scale with Leading Market Positions ($ in billions) $ Revenues BASF Dow LYB SABIC DuPont 2011 Sales 2011 EBITDA Refining & Oxyfuels 37% Technology 1% O&P Americas 20% Refining & Oxyfuels 18% Technology 4% O&P Americas 40% Intermediates & Derivatives 13% Notes: $51 billion lyondellbasell.com Intermediates & Derivatives 20% O&P EAI 18% $5.3 billion Sales segment distribution excludes Other and Intersegment sales. Source: Capital IQ and LYB. O&P EAI 29% Channelview, Texas 21

22 World-Class Scale with Leading Market Positions Products Global Position Chemicals Ethylene #5 Propylene #4 Propylene Oxide #2 Polymers Polyolefins (PE + PP) #1 Polypropylene #1 Polyethylene #4 Polypropylene Compounds #1 Refining & Oxyfuels Oxyfuels #1 Technology and R&D Polyolefins Licensing #3 Polypropylene Catalysts #1 Note: Positions based on LyondellBasell wholly owned capacity and pro rata share of JV capacities as of December 31, 2010, except for Polypropylene Catalysts position which is as of December 31, Tarragona, Spain lyondellbasell.com 22

23 Global reach 58 plants in 18 countries More than 14,000 employees worldwide Sales in more than 100 countries lyondellbasell.com 23

24 Comprehensive portfolio of technologies for license lyondellbasell.com 24

25 LyondellBasell Is the Leading Polyolefins Producer LyondellBasell SINOPEC ExxonMobil Dow SABIC IPIC Group CNPC TOTAL Ineos Formosa Braskem Reliance NPC Iran CP Chem Enichem HDPE LLDPE LDPE PP 0 2,000 4,000 6,000 8,000 10,000 12,000 KT Most of these top producers operate one or more of LyondellBasell licensed processes Capacity Ranking (1) U.S. W. Europe Olefins #1 #7 PE #3 #1 PP #1 #1 Source: CMAI 2010, LyondellBasell 1. Capacity ranking includes LyondellBasell wholly owned capacity and proportional share of JV capacity as of December 31, lyondellbasell.com 25

26 LyondellBasell is the Largest Polyolefin Licensor Total PP Capacity: 72.1 mio t/a LyondellBasell share: 40% Total PE Capacity: mio t/a LyondellBasell share: 19% Data taken from Townsend Polypropylene Report 2008 lyondellbasell.com 26

27 Trademarks Avant, Adsyl, Adstif, Catalloy, Spheripol, Spherizone, Hostalen,Lupotech,Spherilene, Metocene, Moplen, Lupolen, Stretchene, Clyrell, Softell, Superflex, Prodflex, Trans4M, Glacido and Vacido are trademarks owned and/or used by LyondellBasell group companies. Spheripol, Spherizone, Hostalen, Avant, Hifax, Moplen, Clyrell, Softell & Adsyl, are registered in the United States Patent and Trademark Office. LyondellBasell Industries Holdings, B.V lyondellbasell.com 27

28 Disclaimer All information ( Information ) contained herein is provided without compensation and is intended to be general in nature. You should not rely on it in making any decision. LyondellBasell accepts no responsibility for results obtained by the application of this Information, and disclaims liability for all damages, including without limitation, direct, indirect, incidental, consequential, special, exemplary or punitive damages, alleged to have been caused by or in connection with the use of this Information. LyondellBasell disclaims all warranties, including, but not limited to, the implied warranties of merchantability and fitness for a particular purpose, that might arise in connection with this information. Before using a product sold by one of the LyondellBasell family of companies, users should make their own independent determination that the product is suitable for the intended use and can be used safely and legally. SELLER MAKES NO WARRANTY; EXPRESS OR IMPLIED (INCLUDING ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE) OTHER THAN AS SEPARATELY AGREED BETWEEN THE PARTIES IN WRITING. This product(s) may not be used in the manufacture of any US FDA Class III Medical Device or Health Canada Class IV Medical Device and may not be used in the manufacture of any US FDA Class II Medical Device or Health Canada Class II or Class III Medical Device without the prior written approval by Seller of each specific product or application. Users should review the applicable Material Safety Data Sheet before handling the product. LyondellBasell does not sell PB-1 for use in pipe applications intended for use in North America, and requires its customers not to sell products made from PB-1 into pipe applications for North America. lyondellbasell.com 28