Opportunities and collaboration with sabic in sustainable packaging
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Opportunities and collaboration with SABIC in sustainable packaging. World Packaging Days , Split , Croatia June 2012 Gert Coun SABIC , Manager Technical Marketing LD/LL. Contents . Introduction SABIC Sustainability as Global responsibility Saving energy by using plastics

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Opportunities and collaboration with sabic in sustainable packaging

Opportunitiesandcollaborationwith SABIC in sustainablepackaging

World Packaging Days , Split , Croatia

June 2012

GertCoun

SABIC , Manager Technical Marketing LD/LL


Contents

Contents

  • Introduction SABIC

  • Sustainability as Global responsibility

  • Saving energy by using plastics

  • Practical sustainability cases with SABIC products

  • Consumer protection

  • Conclusions and invitation for dialogue & partnership


Sabic in numbers

SABIC IN NUMBERS

  • 1976, our beginning

  • 36 years of growth

  • 2nd largest global diversified chemical company*

  • 33,000 employees

  • 40 countries

  • 60 world-class plants worldwide

  • 1 Corporate Research & Innovation Center

  • 14 Technology Centers

  • 3 Application Centers & 8,000 global patents

* Forbes 2011


Production has multiplied by 6 in 20 years

PRODUCTION HAS MULTIPLIED BY 6 IN 20 YEARS

A high rate of growth…

…reaching 66M metric tons in 2010

Innovative Plastics

1.231

Performance Chemicals

0.458

Metals

5.191

Fertilizers

7.043

Production (million tons)

Polymers

10.667

Chemicals

42.268


We rank among the top producers worldwide

WE RANK AMONG THE TOP PRODUCERS WORLDWIDE

#1

#2

#3

Mono-ethylene glycol

MTBE

Polycarbonate

Polyphenylene

Polyether imide

Granular urea

Methanol

Polyethylene

Polypropylene

Polybutyleneterephtalate

Engineering plastics and its compounding


We have a clear ambition

We have A CLEAR AMBITION

To be the preferred world leader in chemicals

We will achieve this by partnering with our customers,

helping them achieve their ambitions.

When they grow, we grow.

That’s why for us, OUR CUSTOMERS’ SUCCESS COMES FIRST


Ingenuity driven by technology innovation

INGENUITY DRIVEN BY Technology & Innovation

Practical innovation

  • Application development with key customers at the heart of our strategy

  • More than 150 new products created every year

  • Backed by more than 8,000 global patents

    World-class infrastructure and know-how

  • 14 Technology & Innovation Centers in Saudi Arabia, Netherlands, Spain, USA, South Korea and India, with one under construction in China

  • Three Application Centers in Saudi Arabia and Japan

  • One Corporate Research & Innovation Center in Saudi Arabia


Ensuring a sustainable future is a global responsability

Global warming

Depletion of

non-renewable

resources

Increasing

energy demand

Increasing

food and water

shortage

Destruction of

rainforests

Toxicity and health risk

ENSURING A SUSTAINABLE FUTURE IS A GLOBAL RESPONSABILITY


Sabic s strategic options

SABIC’s strategic options

Synthetic and Compostable

Bio-Based and Compostable

Compostable

Bio-Based and Bio-degradable

Bio-Degradable

Oxo-Degradable

Through Additives

Through Additives

Through Additives

Polymers Today

Bio-Based

Through Natural Content

Non-Degradable, Recycling possible

Synthetic

Hybrid

Bio-based

Natural Content

0%

100%


Saving energy by using plastics

Saving energy by using plastics

Preserving Food

Optimizing energy usage

Light weight solutions


What is the impact if we were to replace plastics

146 mill t/a

6.690 mill GJ/a

328 mill t/a

+57%

+61%

X 3,7

4.270 mill GJ/a

204 mill t/a

39 mill t/a

Alternative materials

Alternative materials

Alternative materials

Plastics

plastics

plastics

total masses for same functionality

energy consumption in total life-cycle

GHG emisions in total life-cycle

What is the impact if we were to replace plastics?

2,400 million GJ/yr equals : 50 million tonnes of crude oil


Our commitment

OUR COMMITMENT

“The SABIC sustainability

mission is embedded in the

fabric of our business.

Our mission includesimproving

ourenvironmental footprint,

innovating products, services

andprocessesthatbring

sustainabilitytoourcustomers

andgrowingour business by

deliveringbetter solutions for

the planetandhumanity.”

Mr. Al Mady, CEO SABIC - Chairman of the SABIC Sustainability Council


Reducing the footprint of our manufacturing assets

REDUCING THE FOOTPRINT OF OUR MANUFACTURING ASSETS

Our operations are steered at

continuousimprovementand

reduction of ourenvironmental

footprint, withregardsto:

- Greenhousegases

- Energy

- Water

- MaterialEffectiveness

SABIC will invest more than 100 million EURO in the upgrade of its naphta cracker in Geleen, the Netherlands, in order to significantly improve the energy- consumption of the plant and to reduce CO2 emissions (to be realized before the end of 2013).

World Business Council for Sustainable Development


Sabic lca approach

SABIC LCA APPROACH

  • Dedicated team of LCA experts

  • ISO 14044 Method

  • Impact on “fossil depletion”, “climate change”, “acidification”, “eutrophication” etc….

  • Analysis on “Cradle to Gate” and “Cradle to Grave” principle

  • End of Life Principles – Plastics Europe EU 2010 data for packaging

    • Landfill- 35%

    • Incineration- 33%

    • Recycling- 32%

  • Reproducibility: an independent practitioner should be able to follow the approach and arrive at the same results

  • Environmental burden associated with infrastructure requirements are excluded


  • Case study downgauging recycling are the major contributors in lca improvement

    12.1%

    100%

    disposal

    shipment

    10.0%

    28% total improvements

    4.8%

    Polymer

    production

    1.4%

    0.5%

    molding

    Feedstock

    Base case

    C. footprint

    Adding

    20%

    Recyclate

    10%

    lighter

    Shorter

    Shipping

    distance

    40C

    lower

    Processing

    T

    17%

    cycle

    time

    reduction

    Total

    post

    improvements

    Case Study : Downgauging & Recycling are THE major contributors in LCA improvement

    Illustration: SABIC Innovative Plastics

    Product – PP Packaging Cup

    Analysis type – Internal screening LCA

    Functional unit – 1 PP packaging cup (220 grams)

    System boundary - Cradleto Gate


    Practical cases sabic ldpe multi layer film sabic hdpe milk bottle sabic ums foam

    Practical cases : SABIC® LDPE Multi Layer FilmSABIC® HDPE MilkBottleSABIC® UMS Foam


    Sabic multilayer shrink film less for more

    SABIC®Multilayer SHRINK FILM : lessfor more

    Standard Solution (45µ)

    SABIC 5 Layer Film (35µ)

    Layer A :

    85% C4 LLDPE + 15% LDPE

    50% HDPE + 50% LDPE

    Layer B

    70% LDPE + 30% HDPE

    50% HDPE + 50% LDPE

    85% C4 LLDPE + 15% LDPE

    Layer A :


    System characterization

    SYSTEM Characterization

    System Boundary

    Converters (Europe)

    SABIC Plants Europe

    C6 LLDPE Film

    LDPE

    Multilayer Packaging Film

    Crude Oil

    Naphtha

    LLDPE

    Ethylene

    HDPE

    Use

    EOL

    Excluded Process

    32%

    33%

    Landfill

    35%

    Incineration

    Avoided Electricity

    Cut-off Approach

    EU 2010 recycling rates for plastics packaging

    Source: PlasticsEurope Report “Plastics- the Facts 2011”

    Recycling

    Avoided Virgin Material


    Examples of typical lca outcome for sabic multilayer film concept

    Examples OF TYPICAL LCA OUTCOME FOR SABIC®Multilayer Film Concept

    Similar reductions for “particulate matter” formation, “acidification”, “eutrophication”….


    Sabic ldpe ums in packaging

    SABIC® LDPE UMS in PACKAGING

    SABIC® LDPE Ultra MeltStrengthgrades(UMS) cangive 10% densityreductionofferingdowngaugingpossibilitieswithimprovement of LCA.


    Sabic hdpe preserving fresh milk

    SABIC® HDPE preserving fresh milk

    • SABIC® HDPE B6246LS potentiallyenables 20% higherloading of recycled content comparedtoconventional HDPE dueto :

      • improved thermo-oxidativestability

      • enhancedstable taste performance characteristics.


    What about bioplastics

    What about Bioplastics?

    Decisions in favor of anymaterial or

    product must bebased on sound

    scientific criteria and a life cycle approach

    “Bio-based solutions willbean important

    part of the chemicalindustry’s

    future”

    Onlythose bio-based solutions must be

    developedthat do notcompromise food productionor causemore problemsthanthey

    solve, such as habitat destruction

    or large indirect CO2emissions”

    Mr. Al Mady, CEO SABIC


    Consumer protection

    Consumer Protection


    Sustainability consumer protection

    Positive Contribution to Health & Environment

    Safe Products :

    SAFE PRODUCTS have recognized customer value

    SAFE PRODUCTS enable safe application (e.g. safe food)

    SAFE PRODUCTS meet all relevant internationaland customer compliance needs

    SUSTAINABILITY & CONSUMER PROTECTION


    Enabling consumer protection

    Enabling consumer protection

    • SABIC offers specialized support tocustomers in usingour products in a safe way in the value chain.

    • This support is based on:

      • Continuousdevelopment of polyolefin base resins withincreasedpurity

    • - Proactive service via internet todeliver safe, compliant andsustainable solutions for the value chain, supportedby tools toaddress customer queries


    Summary

    Summary

    • SABIC is committed to supplying Polyolefines in packaging industry .

    • Sustainability is a Global responsibility :

      • Using plastics can save energy

      • High positive contribution of downgauging & recycling in LCA analysis

      • Focus on Consumer Protection

    • LCA improvements guide SABIC product developments in Packaging

    • SABIC is ready for extra dialogue & partnership with customers around sustainability


    Disclaimer

    Disclaimer

    • The products and services of SABIC are sold and rendered subject to SABIC’S standard terms &

    • conditions of sale (GTCS), which are available free of charge upon request, by post or digital.

    • Standard terms & conditions other than the GTCS are dismissed and do not apply. Although any

    • information or recommendation contained herein is given in good faith, SABIC makes no warranty

    • or guarantee, express or implied, (i) that the results or specifications described herein will be

    • obtained under end-use conditions, or (ii) as to the effectiveness or safety of any design

    • incorporating SABIC’s products, services or recommendations.

    • This presentation or document does not contain any calculation, estimate or other warranty or

    • representation that customers and third parties may rely on. Customers and third parties are

    • responsible for making their own determination as to the suitability of SABIC’s products, services

    • or recommendations for the customers’ particular intended use through appropriate end-use

    • testing and analysis, and compliance with applicable laws and regulations.

    • Except as provided in SABIC’S GTCS, SABIC shall not be responsible for any loss or damage

    • resulting from any use of its information, products or services described herein and SABIC

    • assumes no liability whatsoever in this respects.

    • Nothing in any document or oral statement shall be deemed to alter or waive any provision of

    • SABIC’s GTCS or this Disclaimer, unless it is specifically agreed to in a writing signed by SABIC.

    • No statement by SABIC concerning a possible use of any SABIC product, service or design is

    • intended, or should be construed, to grant any license under any patent or other intellectual

    • property right of SABIC or as a recommendation for the use of such product, service or design in

    • a manner that infringes any patent or other intellectual property right.


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