3. Advanced Materials
OUR HISTORY
ADVANCED CHEMISTRIES RAISING PERFORMANCE
Chemical Industry Basel
(CIBA) is formed
Ciba merges with
J.R. Geigy to form Ciba-Geigy
1758
Ciba Specialty Chemicals
independent of Novartis
1996
1884
1971
J.R. Geigy AG begins trading
in chemicals and dyes
Vantico is acquired by Huntsman
and becomes AdMat division
2000
1997
Ciba-Geigy merges with
Sandoz to form Novartis
2005
2003
Vantico is formed for
Performance Polymers
2011
Huntsman becomes a
public company
3
4. Advanced Materials
GLOBAL PRESENCE
ADVANCED CHEMISTRIES RAISING PERFORMANCE
2,300 employees, 80 countries, more than 1,500 products, over 2000 customers
Americas: 527
Europe: 1,135
Bergkamen
Moscow
Duxford
Bad Säckingen
Monthey
Vienna
Pamplona
Istanbul
Basel
Madrid
Cairo
Sadat City
Dubai
East Lansing
Los Angeles
McIntosh
The Woodlands
Seoul
Shanghai
Panyu
Mumbai
Hong Kong
Tokyo
Kobe
Taipeh
Chennai
Singapore
Taboão da Serra
São Paulo
Buenos Aires
3 regional headquarters
13 manufacturing sites
10 sales offices
IMT: 188
Spartan
Deer Park
APAC: 448
4
5. Advanced Materials
INNOVATION
ADVANCED CHEMISTRIES RAISING PERFORMANCE
Innovation comes
from more than just
new molecules
It incorporates both
new building blocks
as well as a way of
working together
along the value chain.
5
6. Advanced Materials
MILESTONES IN EPOXIES
ADVANCED CHEMISTRIES RAISING PERFORMANCE
1930
1940
1950
1960
O
O
O
O
O
-
O
O
O
1980
CH2
-
O
O
O
CH2
-
N
O
O
N
O
O
-
-
O
TGMDA / TGPAP
O
N
O
-
n
DOW
2000
2010
O
O
-
O
-
-
FLUORENE
O
NEXT
GENERATION
EPOXIES
NAPHTHALENE
SHELL
SUMITOMO
UNION CIBA
CIBA
CARBIDE
O
O
O
TGMAP
CIBA
2020
O
O
O
EPN / ECN
CIBA
1990
O
N
BISHENOL A
EPOXIES
Lab / pilot scale
availability
1970
O
HUNTSMAN
DICHUNTSMAN
N
HUNTSMAN
CoE
Internal
evaluation
Customer
evaluation
Commercial
scale availability
Qualification
1st application
Technical drivers
CIBA
DOW
Aerospace
Marine
Electronics
CIBA
Electronics
Structural
Composites
CIBA
HUNTSMAN
CIBA
Structural
composites
Structural
Structural
composites
composites
HUNTSMAN
Structural
composites
Superior mechanical
performances to
polyester and
phenolics
Thermal resistance
superior to
Bisphenol A epoxies
Thermal resistance
Mechanical performance
Processability
TP tougheners
Compatibility
Processability
Modulus
improvement
Similar other
performances
Toughness and
“20% UP”
thermal resistance via
reduction of cross
linking density
Araldite® GY 250
Araldite® LY 556
Araldite® MY 790
…
Araldite® EPN 1138
Araldite® EPN 1139
Araldite® ECN 1273
Araldite® ECN 1299
…
Araldite® MY720
Araldite® 9655, 9512, 9634…
Araldite® M721
Araldite® MY0500
Araldite® MY0510
Araldite® MY0600
Araldite® MY0610
Araldite® MY 0816
6
7. Advanced Materials
MILESTONES IN OTHER HIGH
PERFORMANCE THERMOSETS
ADVANCED CHEMISTRIES RAISING PERFORMANCE
1960
1970
O
N
-O
1980
1990
2000
2010
2020
O
C
H2
Me
N
HO
O
-
OH
Me
-
-
-
-
BMI
MDA
Lab / pilot scale
availability
CYANATE
ESTERS
BMI
MDA FREE
BENZOXAZINES
BISPHENOL A / F
NEXT
GENERATION
BENZOXAZINES
?
R.P.
DOW
CIBA
GURIT
ESSEX
HUNTSMAN
CoE
CIBA
Internal
evaluation
Customer
evaluation
Commercial scale availability
Qualification
1st application
Technical drivers
R.P.
DOW
?
Electronics
Higher thermal
resistance to
epoxies
CIBA
Structural
composites
CIBA
(R.P.)
Structural
composites
Electronics
LONZA
HUNTSMAN
Structural
composites
Electronics
HUNTSMAN
Electronics
Structural
composites
Lower toxicity Niche between FST / X-Free
Thermal and
Processability epoxies and BMIs
mechanical
performance
Dielectric properties
Matrimid® 5292 A/B AroCy® range
Interiors
Araldite® LZ 8280 N 75
XU 8282-1
Processing
Low toxicity
FST / X-Free
Processing
Thermal and
mechanical
performance
Araldite® MT 35600
Araldite® MT 35700
7
8. Advanced Materials
REACH FOR CHEMICALS
ADVANCED CHEMISTRIES RAISING PERFORMANCE
Registration, Evaluation, Authorization and Restriction
Large financial and resource impact on the chemical
components suppliers due to number of substances
Analytical & toxicity studies, dossier preparation, chemical safety
report, personal costs…
We are spending several millions euros each year
in order to maintain current supply
Introduction of new molecules into the EU market may
be commercially risky and expensive
In worse case, more than 2 millions euros
8
9. Advanced Materials
REGULATORY / LEGISLATION
ADVANCED CHEMISTRIES RAISING PERFORMANCE
Evolution in Europe for chemistries used in composite applications
Statement
Phenolics
Epoxy
Epoxy
with resins formerly
"R68” & currently
"H341" labelled
with resins
"Others"
BisMaleimides
Cyanate
Ester
Benzoxazines
Isocyanate
NO ISSUE with
REACH registration
NO USAGE
LIMITATION for
composite application
(prepregs or direct
closed processes)
Unknown
ADDITIONAL
PROTECTIVE
MEASURES (not
mandatory today)
could be required
at the working place
(1)
TGMDA (2)
Naphthalene
epoxy
(4)
TGPAP, TGMAP
Subject to test
programs results (3)
(1) Formaldehyde is today under consultation for "Proposal for Harmonised Classification and Labelling" and it will be classified as Carc. 1A
(2) Latest tests for REACH dossier allow removal from Mutagenic and Reprotoxic classification lists : "R68"/"H341" phrases to be removed by end 2013
(3) Mutagenic and reprotoxic tests running: Tests results expected between 2014 (MUT) and 2016 (REPRO)
(4) REACH registration 2018
Remark: The above table represents Huntsman’s view based on current knowlegde at the date of the presentation and are subject to changes in regulation
9
10. Advanced Materials
WHAT YOU SHOULD EXPECT
FOR INNOVATION
ADVANCED CHEMISTRIES RAISING PERFORMANCE
SPECIALTY
COMPONENTS
PARTNER
ROLE IN
INNOVATION
CONTSRUCT
BUILDING
BLOCKS
MANAGE
CHANGE
(e.g. Huntsman)
PROVIDE
FOCUS
10
12. Advanced Materials
MANAGE CHANGE
ADVANCED CHEMISTRIES RAISING PERFORMANCE
BUILDING
BLOCKS
CHANGES
REGULATORY
RAW MATERIAL VARIABILITY
SUPPLY CHAIN
CHANGE
MITIGATIONS
§ Processes that cover both
internal and external stake
holders along the value chain
§ Product stewardship
§ Apply predictive approach
§ Communication of risks
§ Process safety management
FOCUS
12
13. Advanced Materials
PROVIDE FOCUS
ADVANCED CHEMISTRIES RAISING PERFORMANCE
MASS
COMMODITY
SUPPLIER
SPE. COMP.
PARTNER
TIER 1
PREPREGGER
OEM
MASS
COMMODITY
SUPPLIER
MASS
COMMODITY
SUPPLIER
BUILDING
BLOCKS
CHANGE
100
FOCUS
80
60
40
MC supplier
SC supplier
Prepregger
Tier 1
OEM
20
0
MARKET FOCUS
13
14. Advanced Materials
TAMING THE WILD
ADVANCED CHEMISTRIES RAISING PERFORMANCE
THE COMMODITY WILDERNESS
§ General specifications with little regard to
historical equivalence or customers
§ Inconsistency or fluctuation of quality
§ Change management that meets internal
needs (mainly for safety) and not
customer focused
§ Reluctant to create “specialty” or “unique”
materials
§ “Here is our offering, take it or leave it”
BUILDING
BLOCKS
CHANGE
FOCUS
14
15. Advanced Materials
CREATING FOCUS
ADVANCED CHEMISTRIES RAISING PERFORMANCE
THE PREPREGGER CIVILIZATION
§ Focused needs
§ Well defined specifications based on
statistical equivalence rather than just a
specification range
§ Sensitive to change (effects on quality
and processing time, potential breaching
of approvals)
§ Change management that incorporates
value chain
§ Values uniqueness
BUILDING
BLOCKS
CHANGE
FOCUS
15
16. Advanced Materials
WORKING TOGETHER TO DRIVE
INNOVATION
ADVANCED CHEMISTRIES RAISING PERFORMANCE
A common blueprint along the value chain evolves into a new
civilization of value.
16