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Nanoparticles: Opportunities in Durable Goods

Jeff Redoutey

Director of Global Marketing

Specialty MineralsSeptember 22, 2005

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-Refractories-Metallurgical Wire-Ferrotron Technologies-Pyrogenics

-Lime-Barite

-PCC-GCC-Talc

SYNSIL®

Synthetic Minerals for Fiber/Float Glass

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Net Sales by Product Line

($ Millions)($ Millions)

20032003$813.7$813.7

Processed MineralsProcessed Minerals

RefractoriesRefractories

PCCPCC

31.5%31.5%31.5%31.5%53.6%53.6%53.6%53.6%

14.9%14.9%14.9%14.9%

20042004$923.2$923.2

Processed MineralsProcessed Minerals

RefractoriesRefractories

PCCPCC

32.5%32.5%32.5%32.5%52.9%52.9%52.9%52.9%

14.6%14.6%14.6%14.6%

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Talc, Barite

Wellsville, OH(talc)

Barretts, MT (talc)

Mt. Vernon, INAdams, MA

Canaan, CT

Lucerne Valley, CA

Wellsville, OH

Mt. Vernon, IN

GCC

Adams, MA

Lifford, UK

Brookhaven, MS

60 Satellite Plants

PCC

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Opportunity Status: Polypropylene

• Nanoparticle Product History– Produce, market and sell several .07 micron

products• Calofort S: Lifford, UK

– developed in the mid- 1950’s for rubber industry

• UltraPflex: Adams, MA– developed in the late 1970’s for sealant industry

– Approximately 77 million pounds per year

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Opportunity Status: Polypropylene

• Business Goal

• Market Opportunity

• Value Creation

• Threats to Commercialization

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0

2

4

6

8

10

12

14

0 1 2 3 4 5 6 7

Flexural Modulus (psi 10E5)

No

tch

ed

Izo

d I

mp

ac

t (f

t. l

bs

./in

.)

TPE, PUR, PBT

PP Copolymer with Talc, Wollastonite, Chopped Glass, Mica, HAR Clay

ABS, ABS/PC PC/Polyeste

PPE/PPOTPO

Goal: Disrupt Current PolymerImpact-Stiffness Balance

PP

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2005 Global Polypropylene Market:(billions of pounds)

Consumption Capacity

Europe 22.2 23.4

Africa/Middle East 4.2 7.4

Americas 23.0 23.4

China 15.5 5.0

Asia/Japan 20.2 27.4

World 85.1 86.6

5.5% AGR forecast for 2005-2010

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Target Market Segments: RPP

• Improve performance of reinforced polypropylene (RPP) – incumbents are glass fiber, talc, rubber

• Applications: – Automotive parts

• 35 lbs.. RPP per car x 55 million builds per year

• 1.9 billion pounds of RPP per year

– Appliances• 976 million pounds of RPP per year

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Market Opportunity for Nanoparticles

• RPP: – Auto

• 1.9 billion pounds RPP consumed per year

• @7% Loading

• Potential: 133 million pounds

– Appliance• Potential: 68 million pounds

• Total Durable Plastics: 201 million pounds

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Value Propositions

• Improve RPP with Nanoparticles– Replace higher priced engineering resins

• Polycarbonate @ $1.55/lb.

• ABS & ABS alloys @ $.95 to $1.70/lb

• TPO formulations

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0

2

4

6

8

10

12

14

0 1 2 3 4 5 6 7

Flexural Modulus (psi 10E5)

No

tch

ed

Izo

d I

mp

ac

t (f

t. l

bs

./in

.)

TPE, PUR, PBT

PP Copolymer with Talc, Wollastonite, Chopped Glass, Mica, HAR Clay

ABS, ABS/PC PC/PolyestePPE

/PPOTPO

Polymer Value

PP

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Nanoparticle Pricing: RPP

Talc PP Elastomer Nano Formula FormulaCost Cost$/lbs $/unit volume

Price- $/lbs $0.30 $0.75 $1.00 $1.25

TPO: Auto Exterior 20.0% 48.0% 30.0% 0.0% $0.75 $0.80 -20.0% 71.0% 0.0% 7.0% $0.72 $0.80

• Nano Price

– $1.25/lb.• Value Analysis

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Nanoparticle Pricing: RPP

Talc PP Elastomer Nano Formula FormulaCost Cost$/lbs $/unit volume

Price- $/lbs $0.30 $0.75 $1.00 $2.25

TPO: Auto Exterior 20.0% 48.0% 30.0% 0.0% $0.75 $0.80 -10% Downguage 20.0% 71.0% 0.0% 7.0% $0.72 $0.80

• Nano Price with 10% downguaging

– $2.25/lb.• Value Analysis

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Potential Threats to Success

• Technical– Dispersion

• Market Demand– Lower weight parts for auto

• Competition– finer talc (<0.5u) with aspect ratio

• Cost: Performance Ratio

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Summary

• Durable goods are a large global opportunity for nanoparticles– 200 million pound per year @ $1.25- $2.25 per

pound = $250 million to $450 million

• Competition is plentiful– Performance: cost ratio is critical