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Innovative Catalyst Systems in Value-Driven UNIPOL ® PP Technology July 18, 2019

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  • Innovative Catalyst

    Systems in Value-Driven

    UNIPOL® PP

    Technology

    July 18, 2019

  • 2 © 2019 W. R. Grace & Co. | ConfidentialInnovative Catalyst Systems in Value-Driven UNIPOL(R) PP Technology

    Outline

    ▪ About Grace

    ▪ Grace Polyolefin Technology

    ▪ UNIPOL® PP technology and services

    ▪ Catalyst and Donor Innovation Enabling Customer Success

  • 3 © 2019 W. R. Grace & Co. | ConfidentialInnovative Catalyst Systems in Value-Driven UNIPOL(R) PP Technology

    Strong Market Positions and Financial Performance

    A $2 Billion Technology Leader

    #1

    ▪ FCC Catalysts

    ▪ Hydroprocessing

    ▪ Hydrocracking

    ▪ Polyolefin

    catalysts

    ▪ Independent

    polypropylene

    process

    technology

    licensing

    ▪ Specialty silica

    gel

    Refining Technologies Specialty Catalysts Materials Technologies

    2 Based on FY20173 Catalysts Technologies includes unconsolidated ART joint venture; FCC = Fluid Catalytic Cracking, SC = Specialty Catalysts, ART = Advanced Refining Technologies;

    FCC and ART together constitute the Refining Technologies operating segment

    Polyethylene Polypropylene

    Chromium CatalystsZiegler Natta Catalysts

    Single Site Catalysts

    ActivCat®

    Supports, Components, Activators

    SYLOPOL®

    MAGNAPORE®

    LYNX®

    SHAC®, CONSISTA®,

    POLYTRAK®, HYAMPP®

    LYNX®

    Bulk/Gas Gas

    PhaseGas

    Phase

    Loop CSTR

    Solution

  • 4 © 2019 W. R. Grace & Co. | ConfidentialInnovative Catalyst Systems in Value-Driven UNIPOL(R) PP Technology

    Over $1B in Strategic PP and PE Acquisitions

    0

    0.2

    0.4

    0.6

    0.8

    1

    1.2

    1.4

    1.6

    PP Catalysts

    ✓ Delivered on revenue and synergies of all deal models

    ✓ 4x increase in revenue and margin since 2006

    Acquired Borealis

    Ziegler-Natta tech for

    PE and PP catalysts

    Acquired

    manufacturing

    capacity for PP

    catalysts and specialty

    catalyst components

    Acquired Single-site

    and PP catalyst

    production capacity

    $500M

    Acquired UNIPOL® PP

    catalyst and licensing

    business from Dow

    $250M

    Acquired LYNX® and

    Polyolefins catalyst

    business from BASF

    $416M

    Acquisition of

    Albemarle Polyolefins

    catalyst business

    Ziegler-Natta

    Single-site

    PE

    PP

    PP Licensing

    PP Catalysts

    PE Catalysts

    PP Licensing

    2016 20182013201120062002

    Technology LeaderStrong

    Position

    Developing

    Position

    Advancing Position

    Ad

    dre

    ssa

    ble

    Ma

    rke

    t

  • 5 © 2019 W. R. Grace & Co. | ConfidentialInnovative Catalyst Systems in Value-Driven UNIPOL(R) PP Technology

    POLYOLEFINCatalysts

    PROCESS

    LICENSINGCHEMICAL

    Catalysts

    ▪ Customer-focused, solutions-oriented

    approach

    ▪ Broad, highly-differentiated portfolio

    of products

    ▪ Ability to develop and optimize

    catalyst properties to specific

    applications

    ▪ Flexible assets for the scale-up and

    production of commercial catalysts

    ▪ Wide range of analytical tools and

    testing for product and process

    improvements

    Key Customers

    Delivering Value

    ▪ Global petrochemical companies

    ▪ National (state-owned) petrochemical

    companies

    ▪ Plastic resin producers

    • UNIPOL® Proprietary

    Gas Phase

    Polypropylene

    Process Technology

    • Simple to build,

    operate, and maintain

    • Catalysts and supports

    • Hydrogenation catalysts

    • Technologies for

    alternative and

    traditional feedstock

    • Polyethylene (PE) catalysts

    • Polypropylene (PP)

    catalysts

    • Catalyst supports

    • Components

    Catalyst

    performance

    is a combination

    of design,

    characterization,

    and manufacturing

    Catalysts Technologies | Specialty Catalysts

  • 6 © 2019 W. R. Grace & Co. | ConfidentialInnovative Catalyst Systems in Value-Driven UNIPOL(R) PP Technology

    The UNIPOL® PP Process

    ▪ Above 22 million tons annual production

    capacity*

    ▪ 58 completed lines in 20 countries

    ▪ 25 new lines licensed, under design and

    construction

    ▪ More than 30 years experience

    Delivers ongoing business success for licensees✓*The capacity includes plants in operation and under design and construction

    SystemSimplicity

    AdvancedProducts

    Low CostInvestment

    Low CostOperation

    Easy & Robust

    Operation

    Inherent Safety,

    Environmentally

    Friendly

    PP Plant DesiredFeatures

  • 7 © 2019 W. R. Grace & Co. | ConfidentialInnovative Catalyst Systems in Value-Driven UNIPOL(R) PP Technology

    State-of-the-Art Process Technology

    with Mechanical Simplicity

    ▪ Same plant configuration

    regardless of capacity

    ▪ 1 Reactor for Homopolymers and

    Random Copolymers

    ▪ Plus 1 reactor for Impact Copolymers

    ▪ Same design for both reactors

    ▪ Maximum Capacity:

    650 KTA single train

    ▪ 1 pelleter

    ▪ full homopolymer, random

    and impact product mix

    ▪ Designed for future technology

    improvement (drop in) without need

    for process change

    ✓No additional reactors needed for larger capacities or full product mix

  • 8 © 2019 W. R. Grace & Co. | ConfidentialInnovative Catalyst Systems in Value-Driven UNIPOL(R) PP Technology

    UNIPOL UNIPPAC® Process Control

    Advanced Process Control (APC) tailored to UNIPOL® PP process technology

    ▪ Optimized Plant Performance

    ▪ Intuitive User Interface

    ▪ Immediately ready for operation at start-up

    ▪ New plants and retrofits

    Optimization Features

    Product Quality

    Utilities

    Product Transition

    Cost Reduction

    Product Rate &

    Maximization

    Reliability

  • 9 © 2019 W. R. Grace & Co. | ConfidentialInnovative Catalyst Systems in Value-Driven UNIPOL(R) PP Technology

    UNIPOL® PP Process Accepted Worldwide

    1

    3

    1

    2

    1

    1

    3

    Hyosung2

    Braskem-Marcus Hook

    PropilcoIneos

    Basell

    Yanpet

    FHR

    Pinnacle

    Braskem (Seadrift)

    Phillips 66

    PIC

    1Polychim

    BraskemWesseling

    J. G.Summit

    GS Caltex

    PPM

    CAP

    1 JPC

    Reliance

    1

    1 Ineos

    Ibn Zahr

    1

    OPC

    Stavrolen

    2

    2

    SABICEurope

    1Slovnaft

    Yansab

    ChinaCoal Yulin (1B)Jiutai Energy

    Qinghai DameiShanxi CokingQinghai Mining

    HengliDongguan Grand Resource

    BaofengOriental Energy Ningbo

    Sinochem II

    Pertamina

    1

    Linde/Refineria del Pacifico

    1

    3

    BurelIndustries

    1

    57 Completed PP Reactor Lines

    Shenhua BaotouPetroChina Guangxi

    Datang (2)FushunSichuan

    SinochemChinaCoal Yulin (1A)Shandong Shenda

    Oriental EnergyChinaCoal MengdaQinghai Salt Lake

    Yuantianhua

    1

    Turkmengas QP/QAPCO

    1

    NAPP

    Ineos

    1

    1

    Braskem (LaPorte)

    1

    CKPC

    1

    11

    2

    1

    Inter Pipeline

    1PDH Polska1

    2KIPIC

    More than 22 million tons of capacity,

    58 completed PP reactor lines, with 25

    in design/construction

    1 1 1

    1 1

    1

    1

    11

    1

    1

    12

    2

    22

    2

    211

    1

    1

    1

    11

    12

    1

    11

    11

    1

    1

    1

    1

    1

    38

    3

    13

    2

    58 Completed PP Reactor Lines

    25 Reactor Lines Licensed in Design/Construction Phase

    1SIDPEC

    HTC

  • 10 © 2019 W. R. Grace & Co. | ConfidentialInnovative Catalyst Systems in Value-Driven UNIPOL(R) PP Technology

    Grace’s Approach to Innovation

    Process

    Catalyst Donor

    Product

    Drive innovation through

    catalyst system

    modification.

    Focus on capital

    avoidance.

    Provide catalyst

    technology with

    excellent operational

    performance.

    Advance product

    capability.

    Innovation Strategy

  • 11 © 2019 W. R. Grace & Co. | ConfidentialInnovative Catalyst Systems in Value-Driven UNIPOL(R) PP Technology

    UNIPOL® PP Innovation Building Blocks

    Demonstrated track record of developing breakthrough

    technology that enables customer success

    Ex

    pe

    rtis

    e • Catalyst technology

    • Material science

    • Process technology

    • Process automation

    • PP Formulation

    • Analytical science

    Ca

    pa

    bil

    itie

    s • State of the art catalyst labs

    • Advanced batch reactors

    • Pilot plant• PP formulation• Advanced

    analytical labs• Prototyping

    Ma

    rke

    t / C

    us

    tom

    er

    Fo

    cu

    s • Use of mega trends as guiding principles

    • Customer intimacy

    • Focus on customer value

  • 12 © 2019 W. R. Grace & Co. | ConfidentialInnovative Catalyst Systems in Value-Driven UNIPOL(R) PP Technology

    CONSISTA® Catalyst Systems for Gas Phase PP Process

    ▪Grace is the only licensor to offer proprietary catalyst and donors

    ▪Non-phthalate based chemistry

    ▪Advantaged product properties across all product types

    ▪Outstanding productivity

    ▪Outstanding operating reliability

    ▪Superior product breadth

    ▪Drop-in technology, No process modifications necessary – same operating discipline

    ▪ New and existing users can continue to access current technology

    6th generation Z-N catalyst offers superior

    process and product performance

  • 13 © 2019 W. R. Grace & Co. | ConfidentialInnovative Catalyst Systems in Value-Driven UNIPOL(R) PP Technology

    CONSISTA® Catalysts – Non-Phthalate Based Chemistry

    Solution:

    CONSISTA® Catalysts are based on non-phthalate chemistry, bringing

    benefits to the value chain without compromising product application range.

    ✓ To the PP producer: peace of mind because of less regulatory

    complexity and fewer future regulations.

    ✓ To the consumer: the PP-based products they purchase do not contain

    phthalates.

    Issue:

    • Use of phthalates and phthalate-

    containing plastics in the European

    Union may be restricted.

    • Use of phthalates continues to be

    scrutinized for certain applications.

  • 14 © 2019 W. R. Grace & Co. | ConfidentialInnovative Catalyst Systems in Value-Driven UNIPOL(R) PP Technology

    Demonstrated Product Advantages:

    Grace 6th Generation Catalyst Enhancing Recyclability

    • Less volatiles

    • Lower extractable

    • Improved

    taste/odor

    • Less metal residue

    • Non-phthalate

    chemistry

    Lighter Faster

    Cleaner Clearer

    ▪ Improved HPP stiffness

    ▪ Less polymer per article

    ▪ Packaging efficiency

    ▪ For higher melt flows

    ▪ Increased fabrication speed

    ▪ Clearer, stiffer thermoformed package without

    losing process ability

    ▪ Reduced haze

    UNIPOL® PP Product capability - Summary

  • 15 © 2019 W. R. Grace & Co. | ConfidentialInnovative Catalyst Systems in Value-Driven UNIPOL(R) PP Technology

    Why should you choose Grace UNIPOL® PP Technology?

    ▪ Leading independent process licensor

    ▪ Proven technology

    ▪ Confidence in a long-term and

    solid technology licensor

    ▪ Strong name brand recognition worldwide

    ▪ Long-term commitment to R&D and

    catalyst innovation

    ▪ Continuous access to ongoing

    technology advances

    ▪ Higher Return On Investment

    Confidence – Value – Future

  • 16 © 2019 W. R. Grace & Co. | ConfidentialInnovative Catalyst Systems in Value-Driven UNIPOL(R) PP Technology

    Thank you.

    For more information, please contact:

    Girish Kale | [email protected]

    GRACE®, POLYTRAK®, HYAMPP® MAGNAPORE®, SHAC®, LYNX® and CONSISTA® are trademarks, registered in the

    United States and/or other countries, of W. R. Grace & Co.-Conn. TALENT | TECHNOLOGY | TRUST™ is a trademark

    of W. R. Grace & Co.-Conn. UNIPOL® ® is a trademark of The Dow Chemical Company or an affiliated company of Dow.

    W. R. Grace & Co.-Conn. and/or its affiliates are licensed to use the UNIPOL® trademark in the area of polypropylene.

    MILLAD® and HYPERFORM® are trademarks, registered in the United States and/or other countries, of Milliken & Company.

    BYK GARDNER® is a trademark, registered in the United States and/or other countries, of BYK Gardner USA.

    This trademark list has been compiled using available published information as of the publication date of this brochure and

    may not accurately reflect current trademark ownership or status. GRACE CATALYSTS TECHNOLOGIES is a business

    segment of W. R. Grace & Co.-Conn., which now include all product lines formerly sold under the GRACE DAVISON brand.

    © Copyright 2015 W. R. Grace & Co.-Conn. All rights reserved.

    mailto:[email protected]