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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

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

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.