trends and material needs of the tire industry – arlanxeo ...of sbr (buna) 1929 invention of...

Luc ter Bogt, ARLANXEO Tire & Specialty Rubbers

VKRT Seminar December 2017

Trends and Material Needs of the Tire Industry –ARLANXEO’s Perspective

2 VKRT Seminar December 2017

ARLANXEO – strong company with two powerful partners

ARLANXEO – Performance Elastomers

� World’s largest integrated energy enterprise

� Backward integration into feedstock for synthetic rubber

� Strategic commitment to further develop value chain downstream

� Leading market and technology positions in synthetic rubber

� Well invested asset base

� Broadest product portfolio in the rubber industry with leading brands and quality

#1 in synthetic rubber#1 in feedstock

ARLANXEO name: combining one syllable each of Saudi Aramco and LANXESS; ending “EO” refers to elastomers


ARLANXEO – a key global player in the synthetic rubb er market

Background: � ARLANXEO: Joint venture formed by LANXESS and Saudi Aramco;

Start-up April 1, 2016� A world-leading synthetic rubber company: development,

manufacturing and marketing of high-performance rubber

Global set-up:� 20 plants in nine countries� ~3,800 employees worldwide� Global sales of ~2.7bn € in 2016� Corporate Headquarters: Maastricht, Netherlands

Business Units:1) Tire & Specialty Rubbers2) High Performance Elastomers


Leading with a combined share of 12% of all its rel evant synthetic rubber markets

ARLANXEO estimated market figures

0%

2%

4%

6%

8%

10%

12%

14%

ARL B C D E F G H I J K L M N O P

HPETSR

7%

5%4%

4% 4%3% 3% 3% 3%

2% 2% 2% 1% 1%2%

12%Top 10 players with combined

market share of ~50%


More than 100 years of experience in performance el astomers

2008 –2012

1909Fritz Hofmann invented synthetic rubber

1930BUNA registered as trademark 1975

First production of Brominated Butyl

Rubber

1939Isobutylene copolymerized with isoprene making Butyl Rubber ”cross-linkable“

1936Start of industrial production of SBR (BUNA)

1929Invention of

butadiene styrene copoly-

merization to produce

SBR

1943Synthetic rubber production exceeded 120kt p.a.

1961First production of Chlorinated Butyl Rubber

1944Butyl rubber production in Sarnia (Canada) started

2004Spin-off of LANXESS

from Bayer

2008Acquisition of Petroflex

2010Groundbreaking

for new Singapore site

1990Acquisition of Polysar

Selected milestones in our history

2013Butyl SGPopening

2015EPDM CHN opening

Nd-BR SGPopening

2016ARLANXEO starts –JV of Saudi Aramco

and LANXESS

2011Acquisition of DSM Elastomers

1987Started use of

neodymium-based catalyst

for BR


Tire & Specialty Rubbers (TSR) – world’s leading man ufacturer of Performance Polymers

� Product & brands:– Butyl: X_Butyl™– BR: Butadiene rubbers (Buna® CB / Nd EZ)– S-SBR: Solution styrene butadiene rubbers (Buna® VSL / FX)– E-SBR: Emulsion styrene butadiene rubbers (Buna® SE)

Facts

Products & Brands

Applications

� Part of: ARLANXEO� Customers: > 250� Market position: No. 1-3 in synthetic rubber� Production capacity: > 1,000,000 t/a

Tires Consumer & pharma Plastics Golf & sport balls


� Broad and innovative product portfolio for tire and non-tire applications

� Truly global footprint in all regions featuring state of the art production facilities

� Proximity to major markets, especially Asia including a strong recently built asset base

� Regional technical support andapplication development withcustomers

� Global R&D centers

Broad and innovative portfolio with a truly global footprint

Cabo de SantoAgostinho, BR

Triunfo, BR

Duque de Caxias, BR

Port Jérôme, FR

Dormagen, GEOrange, US

Singapore

Sarnia, CA

Butyl sites

Zwijndrecht, BE

BR / S-SBR sites E-SBR sites

London, CA

Technical centre R&D center

Changzhou, CNShanghai, CN

Pittsburgh, US

Sales office

Fribourg, CH


High Performance Elastomers (HPE) – broad portfolio of synthetic rubber for various applications

Facts

Products & Brands

Applications

� Part of: ARLANXEO

� Customers: ~ 800

� Market position: No. 1-2 in High Performance Elastomers

CRNBR HNBR EPDMEVM

� NBR: Nitrile Butadiene Rubber

� HNBR: Hydrogenated Nitrile ButadieneRubber

� EVM: Ethylene Vinyl Acetate Rubber

� CR: Chloroprene Rubber

� EPDM: Ethylene Propylene Diene Rubber


� Production plants in all key regions

� World’s largest EPDM plants in Geleen, Netherlands and Changzhou, China

� State-of-the-art CR world-scale plant in Dormagen, Germany

� Globally largest NBR plant in La Wantzenau, France

� Only global EVM supplier to offer VA* in the range of40-90 wt%

� Advanced HNBR technology

Global footprint to serve demand of the rubber proc essing industry

São Paulo, BR

Orange, US

Dormagen, DELeverkusen, DELa Wantzenau, FR

Shanghai, CN

Production site Regional sales offices

Pittsburgh, US

Nantong, CN

Triunfo, BR

Geleen, NL

Changzhou, CN

Singapore, SG

* Vinyl Acetate

R&D center


How does the synthetic rubber market of approximate ly 10 mntons p.a. split up?

by regionsby applicationEMEA 23%

NAFTA 16%

APAC 56%

LATAM 5%

Tire 61%Automo

tive 8%

Others 31%

� More than 50% of relevant market is already in APAC

� NAFTA and EMEA representing still a significant share of the market

� Tire as the most dominant application

� Automotive overall with 8%, but high share in EPDM

� Others contains applications with broad range, such as plastics, construction or shoes

by rubber type

Butyl 10%

BR 29%

SBR 43%

NBR 5%

EPDM 11%

CR 2%

� Relevant rubber markets canbe distinguished into six different rubber types

� Styrene-Butadiene rubber (E-SBR/S-SBR) as the most prevailing rubber type



How does BR, SBR and butyl markets of approximately 6 mntons p.a. split up in the tire application?

by regionsby application

EMEA 21%

NAFTA 14%APAC

60%

LATAM 5%

PCR 57%

TBR 38%

Others 5%

� More than 60% of relevant market is already in APAC

� NAFTA and EMEA representing still a significant share of the market

� Passenger Car Radial (PCR) tires as the most dominant application

� Truck and Bus Radial (TBR) tires second

by rubber typeHIIR 11%

IIR 2%

Ni-BR 18%

Nd-BR 11%

Co-BR 6%

Li-BR 1%

Ti-BR 1%

S-SBR 15%

E-SBR 35%

� Relevant rubber markets can be further distinguished into5 different rubber types

� E-SBR as the biggest rubber type in volume for tires



Global car and tire overview: advanced, yet unbalan ced globalization of tire industry

230

394

� NAFTA and EMEA as net importing tire markets

� APAC as net exporter for tire, especially China and ASEAN with >40% of exports

� Majority of volumes in all regions going into replacement market

� China with highest share of OEM sales of all regions (40%)

72 93

389

439

13 38

41

122

71 81

185

76

556 32

8

264

175

Global vehicle production ~ 94

Global tire production ~ 1,819 Global vehicle parc~1,315

Comments2016 figures in million units

Tire production

Original Equipment Manufacturer (OEM) sales

Replacement market sales

26

Source: LMC 2017


Tire capacity shifting to NAFTA and South-East Asia

1.9%

0.6%

4.6%

1.8%

0.6%

1.3% 0.4%

3.3%

1.8%

283m

106m

459m

21m

52m 91m

264m

1,074m

323m

2677

2894

2016 2020

Tire production capacity in units

CAGR 2016-20201.6%

� ~ 65% of global capacity in APAC

� Significant capacity increase in the US, with a high share of Asian tire manufacturers

� Chinese capacities shifting to neighboring countries (lower labor cost and avoidance of anti-dumping tariffs

� EMEA, LATAM and ASEAN with moderate growth

� Middle East growth driven by Turkey

Global capacity 2016: ~ 2,677m tires

Source: LMC 2017


Tire label initiatives are expected for all major m arkets and promote UHP tires with Low Rolling Resistance

2012 2010

2011

2017*

2016

2018

2018**

2018

20162014

2012

2018**

2018

2016

� Increased number of tire label initiatives will pus h further for high performance materials like Nd-BR and functionalized S-SBR

* Currently voluntary and reviewing mandatory regulation ** According to UN Global Tire Regulations schedule


The coexistence of several forces and enablers acce lerates the industry transformation to autonomous driving

Legislation/SustainabilityUp to 40% of gasoline use while looking for parking

Safety:93% of accidents human error>USD 400b cost for traffic crashes in US

Urbanization/Efficiency:Highway capacity can be increased by 500%, Car is unused for 22 hours a day

Entrance of new players:Tesla, Google and alike disrupt the automobile industry

Technology:5G & sensors, integrity of systems

Smart Cities:Providing the necessary infrastructure

Consumer Preference:Generation Y wants mobility as a service, not a product

Sources: PwC - Connected car report 2016, KPMG – Auto insurance in the Era of Autonomous VehiclesInternational Energy Agency - Global EV Outlook 2016, International Transport Forum – Urban Mobility System Upgrade


Increasing amount of software companies actively sh aping developments in the automotive industry

New playersSources: CB Insights, McKinsey


Electrification of cars is an automotive revolution and a shift in tire design and requirements

powerful combustion engines

Performance Efficiency

electric vehicles

Tire

Mob

ility

TODAY

Rolling Resistance fct. S-SBR / fct. Nd-BR / Silanes / Silica

Abrasion Nd-BR

Extended mobility fct. Li-BR / self sealingDev

elop

men

t foc

us

Compound / Elastomer engineering

Sustainability


Product Developments at TSR aim for improving the t ire performance in a holistic way focusing safety & sus tainability

Upper steel belt � influences driving features and shape

Lower steel belt � influences the driving features and shape

Carcass � gives support and carries the load of the vehicle

Innerliner � keeps the air in the tire, ensures safety, fuel efficiency and improved handling

Tread � influences grip, fuel economy, durability & noise

Sidewall � offers ride comfort and protects carcass crack resistance & elasticity

Undertread � provides stiffness, affects fuel economy

Fct. S-SBR / Nd-BR

Nd-BR / fct. Li-BR

Butyl rubber

Nd-BR

Coupled Li-BR / Nd-BR

Bead area � keeps the tire safely attached to wheel rim high hardness

Self-sealing � prevents air loss in case of puncture, provides safety and comfort

Polymer based Sealing Compound


Pneumatic tire will remain the major mobility enabl er beyond 2030, ARLANXEO is able to rely on its broad product portf olio

* Source: Mercedes Benz mobility concept 2016

� Pneumatic tire will still be the core technology for cars and trucks � Butyl / BR

� Ultra low rolling resistance required for electric and autonomous driving vehicles � S-SBR / Nd-BR

� Semi-autonomous and autonomous driving solutions will require different tire types � Broader portfolio

� Increased demand for energy efficient tires supported by labelling initiatives � S-SBR / Nd-BR

2050

vis

ion*

of m

obili

ty


SBR Solution SBR tool box:

� (vinyl, styrene)� Molecular weight� Functionalization (end-group, chain)� Coupling� Oil extension


� The rolling resistance from tires contributes 15 to 30% to the total fuel consumption of passenger cars

� The main contribution to the rolling resistance derives from the interaction of the filler particles in the tire tread compound

� The use of functionalized S-SBR in the tire tread compound reduces the filler-filler interaction and, thus, leads to reduced rolling resistance

Functionalized S-SBR for tire treads for improved r olling resistance through reduced filler-filler interactio n

Non-fct. S-SBR: Strong filler-filler interaction

Fct. S-SBR: Reduced filler-filler interaction


� Reduction of filler-filler interaction can be obtained with ω-functionalized S-SBR. ARLANXEO launched FX 3234A-2 (HM) and FX 5000

� ARLANXEO’s technology to produce in-chain functionalized S-SBR for silica tire tread compounds allows further significant reduction of filler-filler interaction

� Combination of chain-end & and in-chain functionalized S-SBR in silica all-season tire tread formulation allows improvement of winter tire properties without losing summer tire handling performance

Advanced S-SBR functionalization technologies for b etter overall performance of tire treads

1 100,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0

4,5

5,0

5,5S-SBR in compound:

non-fct. ω-fct. in-chain fct. in-chain fct. in-chain fct.

G'

[MP

a]

Strain [%]

26 24 22 20 18 16 14 12 100,84

0,86

0,88

0,90

0,92

0,94

0,96

0,98

1,00

1,02

ω-SBR 1 / ic-SBR 2

SBR 1 / ic-SBR 2

ω-SBR 1 / SBR 2

SBR 1 / SBR 2

ω-SBR 1 / NR

G' @

20%

[M

Pa]

E' @-10°C [MPa]

SBR 1 / NR

SBR 1: Tg = -24°CSBR 2: Tg = -61°C

better wintertire performance

better summertire handling


Changing from E-SBR / carbon black to S-SBR / silica leads to significant improvement of:

� wet grip behaviour

� rolling resistance

-120 -100 -80 -60 -40 -20 0 20 40 60 80 1000.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

tan

δ

temperature [°C]

wet gripindicator

rolling resistanceindicator

Evolution of wet grip vs rolling resistance for tir e tread compounds

developmentE-SBR with carbon black

S-SBR with silica


E-SBR with carbon black

S-SBR with silica

chain-end fct.S-SBR with silica

-120 -100 -80 -60 -40 -20 0 20 40 60 80 1000.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

tan

δ

temperature [°C]

wet gripindicator


development

Changing from unfunctionalized S-SBR to chain end functionalized S-SBR leads to:

� reduction in rolling resistance

� maintained wet grip



E-SBR with carbon black

S-SBR with silica

chain-end fct.S-SBR with silica

in-chain fct.S-SBR with silica

-120 -100 -80 -60 -40 -20 0 20 40 60 80 1000.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

tan

δ

temperature [°C]

wet gripindicator


development

Changing from chain end functionalized S-SBR to in-chain functionalized S-SBR leads to:

� improved wet grip

� improved rolling resistance



� Non-functional SSBRs. Segregation to high vinyl, high styrene andlow Tg grades

Evolution of ARLANXEO S-SBR portfolio; tailoring microstructures and introducing functionality to fi llers

-30°C -20°C

-50°C

-70°C


� Non-functional SSBRs. Segragation to high vinyl, high styrene andlow Tg grades

� Extending the non-functional grades


-30°C -20°C

-50°C

-70°C


� Non-functional SSBRs. Segragation to high vinyl, high styrene andlow Tg grades

� Extending the non-functional grades

� ω end-group functionalized productsintroduced in 2016


-30°C -20°C

-50°C

-70°C


BR


NdBR

• Highest cis-1.4 stereo regularity andlowest vinyl content

• Highest regularity of polymer chains

• Preferred polymer for tireperformance (RR, wear)

Catalyst Nd Co Ni Ti LiMicrostructure

1.4-cis content (%) 98 97 97 93 381.2-vinyl content (%) 0,5 1,7 1,8 5 11

Glas Transition Temperature Tg (°C)

-109 -107 -107 -104 -93

Branching (%) < 5 20 20 15 < 5Polydispersity PDI (Mw / Mn)

2,1 3,1 4,2 3,4 2,0

cis-1.4-BR

- 110 °C- 30 °C

Selectivity

Glass temperatureMelting point

trans-1.4-BR

- 100 °C80 to 160 °C

vinyl-1.2-BR

to 210 °C

C1

C2 C3

C4

* *n

**

n

* n

Different types of BR commercialized. Used catalyst determines the final microstructures and properties


Significant improvement in the classification of th e EU labeling for fuel economy possible

Rolling Resistance classification (EU Tire Labeling)

BR with different microstructures: Nd-BR provides s uperior properties in RRc and wear resistance

Silica filled PCR tire tread compound consisting of 55 phr S-SBR and 45 phr BR

ARL Nd-BR

E

C

RR

c(k

g/to

n)


In parallel improvements of wear resistance are cle arly observed with ARLANXEO Nd-BRs

BR with different microstructures: Nd-BR provides s uperior properties in RRc and wear resistance

Wear tested on Skoda Octavia 1.9 TDI, 14.000 km, average of all 4 wheels

ARL Nd-BRwea

rind

ex

Silica filled PCR tire tread compound consisting of 55 phr S-SBR and 45 phr BR


Processing difficulties with standard high-cis buta diene rubbers can lead to compromises in tire performance

High Mn Nd-BRs lead to advantageous performance leve ls, but also partly to processing issues

CoBR Buna CB 1203

NdBR Buna CB 24

NdBR Buna CB 22

56

58

60

62

64

66

68

50 100 150 200 250Mn

Reb

ound

@ 6

0°C

[%]

CoBR – CB 1203CoBR – CB 1220

NdBR – CB 24NdBR – CB 22NdBR – CB 21

Note: Mn as numerus average of molecular weight distribution counts the free polymer chain ends

Among all high-cis Butadiene rubbers, Nd-BR consists of very narrow polydispersity, comparable high Mn and highest linearity. These result in very fast relaxation behavior, affecting processing


CoBR

CB24

CB22

Nd24EZ

Nd22EZ

Performance

Ext

rusi

on s

peed

Buna ® Nd EZ compounds have improved processing behavior f or customers

Ext

rusi

on s

peed

Buna® CB 24

Buna® Nd24 EZ

Buna® CB 22

Buna® Nd22 EZ

Buna® Nd EZ: breakthrough technology bridging the g ap between processability and tire performance

Note: Extrusion @ 100 °C (30 BR / 70 SSBR / 90 Silica)

New generation of modified Nd-BR combines long chain branching for reduced compound Mooney and improved processing on the mill or in the extruder with chemical modifications to gain dynamic properties

� Easy processing with reduced mixing time and smoother profiles

� Optimized rolling resistance� increased fuel efficiency and reduction of CO2 emissions

� Excellent resistance to abrasion, flex cracking and fatigue � improved safety and durability


Li-BR allowing certain modifications, due to differ ent polymerization mechanism than high-cis BRs

Carbanion as initiator, e.g. butyl lithium Multi-component catalyst systems consisting of corresponding metal precursor, co-catalyst and activators

Low-cis butadiene rubbers

Ni-BR Co-BR Nd-BR

Anionic polymerization

x M R-(M)x- Li+ fx

R-(M)x-fxR-Li R-(M)x-fx

Co-catalyst(s)

x M R-(M)x-Nd[Nd-R]

Co-catalyst-fx

(M)x-Rfx

fx

chain-transfer

High-cis butadiene rubbers

Li-BR

Most promising for end-functionalization

Low-cis microstructure

Most difficult for end-functionalization

High cis microstructure

Coordination-insertion polymerization


Text �Energy

dissipation

� End-functionalized Lithium butadiene rubbers show similar or better energy dissipation than high-cis butadiene rubbers in carbon black applications

Text �Process-

ability

� Balanced choice in polarity of the functional group allows to yield a reasonably low compound Mooney

� Die swelling is reduced compared to high-cis polybutadienes

Text �Reversion resistance

� Low-cis butadiene rubbers exhibit less reversion at high temperatures

� beneficial for vulcanization of “thick” compounds , e.g. in truck tires

� promising for run-flat inserts , allowing for longer distances under flatted conditions

Developments of functionalized Li-BRs demonstrate superior properties in carbon black compounds

0

50

100

150

200

250

300

350

Rol

ling

Res

ista

nce

Indi

cato

r

Li-BR

Nd-BR

fx Li-BR

40

60

80

100

120

140

Die

sw

ellin

g [%

]

Li-BR

Nd-BRfx Li-BR

fx+cLi-BR

fx+cLi-BR


Functionalization of high-cis butadiene rubbers dif ficult…

� Multi-component catalyst systems consisting of corresponding metal precursor, co-catalyst and activators

Ni-BR Co-BR Nd-BR

R-(M)x-fx

Co-catalyst(s)

x M R-(M)x-Nd[Nd-R]

Co-catalyst-fx

(M)x-R

fx

fx

chain-transfer

High-cis butadiene rubbers

Most difficult for end-functionalization …

High cis microstructure

Coordination-insertion polymerization… but not impossible

50 60 70 80

60

80

100

120

Rol

ling

Res

ista

nce

Indi

cato

rCompound Mooney Viscosity [MU]

Li-BR

Nd-BR

fx-Li-BR

fx-Nd-BR

Functionalization of high-cis butadiene rubbers dif ficult…… but not impossible to improve properties further


� Extended mobility is a topic of increasing attention in thecar and tire market

� Full size spare wheels and jacks gradually disappear tosave space and weight*

� Besides a temporary spare, alternative extended mobilitysolutions available are: repair kit, self-sealing tires andrun-flat tires

� VW is currently the main driver behind self-sealing tiresand approved Continental, Pirelli, Goodyear andHankook tires for fitting to their new cars

� Replacement market to be developed

* Puncture occurs once every 75.000 km in Europe and every 3.000 km in some Southeast Asian countries (source: Michelin). In 2015 globally 45% of new cars had a full spare wheel(source: Notch Consulting)

repair kit self-sealing tire

run-flat tire

Extended mobility increasing attention – ARLANXEO developing a ready-to-use sealant


What do we do from here?

� Independently of the kind and the status of mobility, tires will remain as the main carrier for various vehicles

� Tire developments need to be continued to improve fuel economy (driving range), wear resistance, comfort and sustainability of respective tires

� As such, developments of tire materials are essential to be conducted further to support these evolutions

� Several factors in contradiction, development of materials for specific purposes, there is no ‘one suits all’ solution

� ARLANXEO with its broad rubber portfolio provides already today solutions for those complex trends, but is carrying out further rubber & material developments to comply with the requirements of the tire industry

� Input from customers is instrumental in understanding the needs!

trends and material needs of the tire industry – arlanxeo ...of sbr (buna) 1929 invention of...

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