Innovation @ DSM ElastomersPresentation at the

VKRTMaurits F.H. van Tol

DSM Elastomers

Vice-President, Global Research and Development

February 12th, 2009

THE Global Innovative EPDM Supplier

Outline of the presentation

• Introducing DSM Elastomers

• Innovation at DSM Elastomers: the three technology platforms

• Product Development & Application Development

• Modified EPM’s by Reactive Extrusion

• Keltan ACETM:handover to Herman Dikland

The DSM Elastomers Business Card

LeominsterBatonRouge

TriunfoSao Paulo Singapore

Shanghai

Beijing

Genk SittardGeleen

= Production facility

= Sales office

Ø A global leader in EPDMØ With presence in all leading

markets

Ø 500 employeesØ 200 kt EP(D)M capacityØ Global Innovation LeaderØ Sarlink TPV

Ø Quality TPV Solutions from theglobal TPV specialist with thecomplete high quality productportfolio

- EPDM - - TPV -

Ø Three Technology PlatformsØ Further expanding on Product and Application

Development TechnologyØ Implementation of Keltan® ACETM TechnologyØ Implementation of Reactive Extrusion Technology

Ø DSM Elastomers investments in support of innovation programsØ Organizational alignment in support of innovation programs (2006)Ø Significant increase in manpower for new product and application

development (2006)Ø New reactive extrusion plant in Triunfo, Brazil (Opened 2008)Ø Implementation of Keltan® ACETM technology in Geleen, The Netherlands

(2008)

DSM Keltan®

THE Global Innovative EPDM Supplier

Market-Driven Growthand Innovation

Keltan® Product DevelopmentGradual transition to colorless oil extended portfolioNew Packaging & Product Appearance

Keltan 509x100

Yellow oil550mm x 366mm*

25kg

Keltan 4551A“The upgraded Keltan 509x100”

Colorless oil680mm x 340mm*

25kg

NEW

* Can and will be affected by cold flow of the product

Keltan 509X100 –Keltan 4551A, Keltan 512X50 - Keltan DE4331A ,Keltan 708X15 –Keltan DE6531A

EPDM ULD Sponge Requirements-an illustration of our AD programs

• Density < 0.1 (If possible to match NBR/PVC density 0.08to 0.06)

• Closed cell for insulation applications• Good outer skin formation• Good extrusion properties• Continuous hot air cure• Flame resistant systems now also available

The Challenge

• With such poor uncured strength, how is it possible to makeultra low density sponge from EPDM?

• Answers:1. Increase the compound strength at the time of blowing agent

decomposition to resist cell rupture.2. Improve the compounds ability to contain high volumes of gas by

raising the gas retention efficiency (GRE).

Note: Understanding the challenge is easy. Achieving it is difficult.a. Polymer?b. Cure system?c. Process set-up?

Desired Outcome Achieved

• Correct polymer and ingredient choice hasresulted in high gas retention efficiency.

• Densities of less than 0.06g/cm³ have beenachieved.

• High GRE has resulted in significantly lowerblowing agent additions for EPDM ULD spongecompared to NBR/PVC.

• EPDM ultra low density sponge can be producedon standard production facilities.

Keltan® Reactive Extrusion Development

• EPM is reacted with Peroxides and Maleic Anhydride in a continuousextrusion operation (hence Reactive Extrusion)• Petroleum Additives• Wood-Plastic Composites• Nylon impact modification• etc,.

• Plant was opened mid-2008 in Triunfo, Brazil

• Product Form• Bales• Pellets

• Some illustrations of applications… … … …

Dispersant Viscosity Index Improvers

Increased environmental restrictions on dieselemissions have resulted in a redesign of theengine to include exhaust gas recirculation.

For diesel engines this has the effect of “dumpinga bag of coal in the crankcase.”The result isgreatly shortened oil change intervals leading toincreased operating costs.

DSM functionalized polymers are used to makedispersant viscosity index improvers that handlethe increased soot and restore the normal oilchange interval for HDD-EGR engines.

This helps operating costs and contributes to a cleaner environment.

WPC –Wood Plastic Composite –DE5005• Example of compatibilization of polymer with polar material• Blends of PP, PE or PVC with wood fibers / dust

• Outdoor decking and railing• European market growing at >20% p.a. during last 5 years

• > 1000kt world market• US is leading, European market is catching-up fast

• MAH grafted polymers identified as coupling agents• Demand estimated to be >22 kT

• PE and PP based WPC (88% market share)• coupling agent for PE & PP in WPC: est. 2%.• Encountered competition:

Struktol, Polybond, Clariant, Dow, …

50 Polymer50 Wood flour

49 Polymer50 Wood flour1 DE5005

Stre

ss [M

Pa]

Strain [%]

Value proposition of DE5005 in WPC• Improved polymer wood interactions• Improved impact resistance• Improved low temperature flexibility• Reduced moisture swell• Concentrated additive

Tensile Strength Results

Polyamide Impact Modification –DE5005

0

10

20

30

40

50

60

-25 -5 15 35 55 75Temperature [°C]

n-C

harp

y [k

J/m

²]

PA6/DE5005/PlastomerPA6 (literature)

DE5005 is a highly functional nonDE5005 is a highly functional non--crystalline polyolefincrystalline polyolefincompatibilisercompatibiliser

• Suited for the impact modification of PA6• Allowing system cost reduction by dilution• Introducing additional processing flexibility by a 2-component

impact modifier system

• Increasing initial elongation at break• Increasing notched impact energy• Lowering the brittle/tough transition temperature

• Impact resistance is the property of a material to absorb theenergy of a sudden shock

• Some materials such as rubbers have very high impactstrength, whereas many high performance materials have lowimpact resistance which is often observed in form ofbrittleness at low or ambient temperature

• Many engineering thermoplastics can be ‘impact modified’byadding a dispersion of soft, rubbery particles to the rigid EPmatrix

• SAN, PC, PS, PA, PBT all have impact modified versionscommercialized

Impact PA6compound

72% PA67% DE5005

21% Plastomer

PA6

DE5005/Plastomer

Brittle/toughtransition

Impact strength

PA6

SoftRubberparticle

Polymer Modifier - Keltan 1200A

• Keltan 1200A, a low molecular weightethylene propylene copolymer

• Is an excellent choice for polymer-richcompound formulations

• Shows improved compounding• Results in improved extrusion• Meets demanding mechanical

requirements• Maintains mechanical properties after

aging• FDA approved

Critical properties of low viscosity EPM grades• Improved processing with maintained mechanical properties• Unlimited EPDM compatibility• VOC neutral• Non-fogging• Not extractable• Viscosity control in low oil or non oil compounds• Improved extrusion and flow in injection moulding

Keltan 1200A has very low viscosity andundergoes cold flow as evidenced by thistransition!

Time Zero Time 24 hrs

0

10

20

30

40

50

60

70

80

90

100

110

120

130

140

150

K740 pure 90/10phr 80/20phr 70/30phr 60/40phr 50/50phr0

50

100

150

200

250

300

ML T.S. [MPa]Hardness [°Sh.A] Tear str. Delft [N]Elongation [%] Comp. Set 23 °C [%]Comp. Set 100 °C [%]

Keltan® Summary and Conclusions

Ø DSM Elastomers has the ambition to remain THE GlobalInnovator in EP(D)M

Ø Three technology platforms have been defined to support DSMElastomers growth and innovation ambitionsØ Product and Application DevelopmentØ Reactive ExtrusionØ Keltan ACETM

Ø Global technical service & joint application developmentprogram for and with our customers

Ø Seeking active collaboration with external parties in general

Market-Driven Growthand Innovation

DSM Elastomers is highly committed to growtogether with its customers around the Globe!

Keltan ACETM Technology

Ø Base catalyst technology licensed from NovaChemicals

Ø DSM developed the catalyst for the production ofKeltan and holds a strong patent position

Ø New catalyst system creates the opportunity to develop high valueproducts that are unattainable with state-of-the-art Ziegler-Natta orclassical metallocene chemistry

Ø Product diversification potential has led to the decision ofimplementing advanced catalysis in our existing production facilities

Ø The trade name for new advanced catalyst technology by DSM is

Keltan ACE TM

Market-Driven Growthand Innovation