Sustainable Packaging Innovation - gpcaresearch.com · Capitalizing on innovation: A growth imperative Delivering on the Positive Value of Flexible Plastic Packaging REDEFINE THE

Sustainable Packaging Innovation: Delivering Sustainable Solutions Across the Value ChainBob Maughon

R&D Vice President, Packaging & Specialty Plastics and Hydrocarbons

The Dow Chemical Company

Capitalizing on innovation: A growth imperative

Industrial Intermediates & Infrastructure

Performance Materials & Coatings

Packaging & Specialty Plastics

2016 Net Sales: ~$40B

>20% Op. EBITDA Margin*TECHNOLOGY

PLATFORMS

WORLD-CLASS

CAPABILITIES~$20BNet Sales

>25%Op. EBITDA

MARGIN

~$11BNet Sales

>15%Op. EBITDA

MARGIN

~$8BNet Sales

~15%Op. EBITDA

MARGIN

*Includes silicones net sales and EBITDA for FY16. Operating EBITDA is defined as income from continuing operations, net of tax excluding depreciation and amortization, interest

income, interest expense and amortization of debt discount, taxes, and significant items

• Polyolefins

• Elastomers

• Polyurethanes

• Silicones

• Acrylics

• Ethylene oxide derivatives

• Propylene oxide derivatives

• Cellulosics

• High-throughput R&D

• Catalyst discovery

• Polymer science

• Formulation expertise

• Process engineering

• High-performance computer

modeling

• Application development

Future Dow – Operating Segments


Where Is Food Lost? The Role of Packaging in Addressing the Challenge

38%

0

37%

0

7%

0

13%

0

5%

00%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Waste Breakdown by Stages of Value ChainConsumption

Distribution

Processing

Handling & Storage

Production

50% of food loss can be

reduced by better packaging

Food Waste costs ~$750

Billion annually


Packaging Delivers Significant Impacton Shelf Life and Reducing Food Waste

W H O L E C H I C K E N

20 ► 40 Days

B R O C O L I F L O R E T

20 ► 40 Days

7 ► 70 Days

G R AP E S


Recycling Many Plastics Is Challenging

InfrastructureTechnical Consumer Behavior

Success will require focus on all three pillars


Plastics Are Under Attack

Proposals for Plastic Bag Bans are

Becoming More Wide Spread…

Pressure is Increasing Globally for

Transparency & Disclosure

http://www.google.co.in/url?url=http://plasticpollutioncoalition.org/2012/06/reducing-plastic-pollution-on-campus/&rct=j&frm=1&q=&esrc=s&sa=U&ei=DulRVLOtB8e5mAX8zoDwAw&ved=0CBUQ9QEwAA&usg=AFQjCNHU6SZzpGnDDjRk3FhIxcSoEcpBhQ

http://www.google.co.in/url?url=http://plasticpollutioncoalition.org/2012/06/reducing-plastic-pollution-on-campus/&rct=j&frm=1&q=&esrc=s&sa=U&ei=DulRVLOtB8e5mAX8zoDwAw&ved=0CBUQ9QEwAA&usg=AFQjCNHU6SZzpGnDDjRk3FhIxcSoEcpBhQ


Delivering on the Positive Value of Flexible Plastic Packaging

REDEFINE THE FUTURE OF PACKAGING

SOLUTIONS

TO REDUCE

FOOD WASTE

REDUCTIONS IN

ENERGY

CONSUMPTION

DESIGN TOOLS

FOR SUSTAINABLE

PACKAGING

COLLABORATIONS

THAT REDEFINE

THE FUTURE OF

PACKAGING

ADVANCEMENTS

IN END OF LIFE

OPTIONS

3

RECOVER THE

VALUE FROM

WASTE

2

INCREASE

RECYCLABILITY

OF FLEXIBLE

PACKAGING

DECREASE

FOOD WASTE

AND

MATERIAL USE

1


The Innovation Challenge

Material

Design

What

Our Customers

Want

What We

Control

Innovation Must Bring:

• Enhanced product performance

… that meets Value Chain needs

… and with sustainable solutions

• Lower production cost and energy demands

• Increased plant capacity / capability


Market-Driven Innovation Model

Innovate AccelerateCollaborate

Value Chain

Application DevelopmentMaterial

Science

Process

Research

Catalyst

Research

Converters

Commercializatio

n

Material

Science

Process Research Catalyst

Research

Application Development

Market to Monomer

Value Chain Driven Innovation

Converter

Supplier / Equipment

Manufacturer

Brand Owner

Retailer

Commercializatio

n

Material

Science


Research


Market to Monomer


Converter


Manufacturer

Brand Owner

Retailer

Commercializatio

n

Material

Science


Research


Market to Monomer


Converter


Manufacturer

Brand Owner

Retailer

Commercializatio

n

Material

Science


Research


Market to Monomer


Converter


Manufacturer

Brand Owner

Retailer

Commercializatio

n

Material

Science


Research


Market to Monomer


Converter


Manufacturer

Brand Owner

RetailerEquipment

Manufacturers

Brand Owners

Retailers


Resins to Structures Deliver Functionality & Sustainability

ML Structures

3-11 Layers

Down-gauge

Enable Recyclability

Reduce Energy

and Waste

FunctionalityML Structures Sustainability


Catalysis Can Significantly ImproveProcess Sustainability

Increasing Thermal Stability

and Efficiency

Polyethylene: Higher Efficiency and Plant

Throughput Through Improved Catalyst Design


Superior Packaging Abuse Resistance

DOWLEXTM ELITETM INNATE™

Superior Stiffness & ToughnessReduced Weight & Thickness Higher Performance

Up to 25% Down-gauging

Innovate AccelerateCollaborate

1X

2X

4X

DOWLEXTM ELITETM INNATE™


Key Elements of the Innovation

To

ug

hn

ess

Stiffness

INNATE™ Precision Packaging Resins

Traditional mLLDPE

Catalyst & Process Innovation that delivers:• High MW capability

• Optimized macromolecular architecture

• High co-monomer incorporation

• Can run at high Rx temperature (> 160o C)

… High production rates and improved energy

integration/efficiency

Market Value Proposition

Excellent sustainability profiles due to light-weighting potential

Film toughness without compromising stiffness and other key properties


Enhancing Abuse and Drop Test Performance

Laminated Heavy Duty Bags: Rice/wheat flour bags, fertilizer bags, seed bags, etc.

Example: 5kg rice bag

Structure: BOPA (15 µm)//PE (100 µm)

Unmet need: unable to meet a stringent 5m drop test

requirement from a brand-owner

Example: 5kg seed bag

Structure: PET (12 µm)//PE (140 µm)

Unmet need: Downgauging to 100 µm to reduce

cost & increase the yield

0

500

1000

1500

2000

2500

Control 30% INNATE™ ST50

70% INNATE™ TH60

Dart

Im

pa

ct

Str

en

gth

(g

)

0

500

1000

1500

2000

Incumbent (140 μm) INNATE™ ST50 (100 μm)

Dart

Im

pa

ct

Str

en

gth

(g

)


Impact Across Entire Value Chain Accelerates Implementation

Retailer & Consumer

Co-PackerBrand OwnerProcessing

ConverterProcessing

ResinManufacturer

ProcessabilityPolymer Design

Package Performance

The Entire Value Chain Must Be Considered

Economic

ImpactPolymer

Differentiation

Processing

Economics

Tougher

Performance

Reduced

Unsaleable Downgauge

Bag Drop Brand TrustPerformance &

Value Positioning

vs. Asset Avg. Reduced Costs Example

Dow

Resin Bag10% Meets Targets Highly Satisfied

Competitive Cost

to Produce

Reduced Bag Breaks


Recycle Solutions for Barrier and Non-Barrier Applications

Reverse printed PE

adhesively laminated to

3-layer PE sealant film

5/7-layer coex

Barrier Film with

EVOH/PA

Recyclable PE

(Monomaterial Laminate)

Recyclable PE Based

Barrier Film

Seal

Jaw

Lamination

Layer

Coex

Layer

Sealant

Layer

Adhesive

Layer

Coex

Layer

Laminate

Seal

Jaw

Surface

Layer

Barrier

Layer

Tie

Layer

Coex

Sealant

Layer


Package Design Enables Sustainable Innovation

Package DesignReduced Weight Efficient Packaging

InnovateCollaborate Accelerate


Sustainable Impact Is Needed Across the Value Chain to Succeed

Package Design

Industry and Consumer Engagement

Recyclability

Downgauging / Lightweighting

Catalyst Breakthroughs

Improved Performance

Process Innovation

Retailer & Consumer

Brand Owner ConverterResin

Manufacturer

Recycle Compatilabizers


Path Forward: Working Together

• Increase Consumer Education & Collection Understand the value of plastics Segregation at source

• Improve Waste Management Infrastructure

• Enhance Recyclability All-PE technology Compatibilizer

• Develop End Use Markets Mechanical recycling Chemical recycling Energy recovery Be creative


EUROPE

MEAF

CHINA

REST of

ASIAINDIA

U.S. Gulf Coast

1535 kta

USA / CANADA

SOUTH

AMERICA

Sadara

1300 kta

Solution PE 750 KTA

LDPE 350 KTA

Elastomers 220 KTA

CENTRAL

AMERICA

ELITE™ 400 KTA

LDPE 350 KTA

NORDEL™ 200 KTA

Elastomers 330 KTA

We Believe in the Future of Plastics

Thank youwww.gpca.org.ae

®™ Trademark of The Dow Chemical Company (Dow) or an affiliated company of Dow

Documents

Sustainable Packaging Innovation - gpcaresearch.com · Capitalizing on innovation: A growth imperative Delivering on the Positive Value of Flexible Plastic Packaging REDEFINE THE