Nature works overview Presented by Tony Seers -- SeePlas

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© 2013 NatureWorks LLC.

Tony Seers

Seeplas Pty Ltd.

PAG Meeting 25 June 2013

NatureWorks

Overview

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• World leading bio-polymer company

− 150,000 ton plant in Blair, NE

− Engineering ongoing for a 2nd plant in

S.E.Asia

− Significant manufacturing know-how

and an extensive IP position

• Jointly owned by Cargill and PTTGC

• Proprietary portfolio of Ingeo bio-

polymers & intermediates

• Superior environmental characteristics

− Lower carbon footprint , low fossil energy

− Additional end-of-life options

• Ingeo - competitive on a cost and

performance basis with traditional plastics

(PS, PET)

• Established global market channels

− Over 100,000 ton in annual sales volume

− Commercial partnerships with global brands

Who We Are…

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Resins

Plant

Sugars

Plants

Additives

(Modifiers)

Adhesives

Coatings

Printing Toners

Specialty

Lactates

Surfactants

Manufacture

Carbon

dioxide and

water

Intermediates

The Conversion Chain

CO2 CO2

CO2 CO2CO2

What We Do . . .

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NatureWorks LLC

Ingeo Biopolymer Plant

Blair, Nebraska USA

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Italy

Brazil

Germany

Netherlands

Belgium

UK

Ireland

Japan

Taiwan (Taipei)

Singapore

Australia

New Zealand

USA

Blair, NE

Minnetonka, MN

Savage, MN

Cary, NC

Marietta, GA

Naperville, IL

Doylestown, PA South Korea

Hong Kong

Shanghai

Mexico

NatureWorks’ global footprint

Global commercial footprint with sales to over 25

countries worldwide

Colombia

Israel

South AfricaChile

Thailand

Bangkok Vietnam

Philippines

NatureWorks Office

NatureWorks Distributor / Agent

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3 seriesInjection Molding

7 seriesISBM – bottles, BM

6 seriesFibers, Nonwovens

4 seriesFilms, cPLA

2 seriesThermoforming

8 seriesFoam

1st Gen (Lactic)

polymer platform

Ingeo Platform: “Performance materials from renewable resources”

Family of

Polymers

L-100Lactide

L-300Lactide

L-800Lactide

M-3000Lactide

Lactide

monomer platform

Family of

Monomers

3100 HP

3260 HP

6100 D

6260 D

Family of

High % L Polymers

Ingeo Platform

2500 HP

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Ingeo

Value

Proposition

Emotion

(Consumer)

Economic

(Performance)

Environment

(Sustainability)

All

Dimensions

with

Ingeo™

Traditional

Plastics -

One Dimensional

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Source: CMAI

Note: PET represents bottle resin North America contract (market average small/large buyer) PET; PP represents North America contract PP; PS represents general purpose

North America contract market PS; PVC represents general purpose North America contract market PVC

$0.64

$0.45

$0.76

$0.46

$1.10

$1.22

$1.25

$0.83

$0.00

$0.15

$0.30

$0.45

$0.60

$0.75

$0.90

$1.05

$1.20

$1.35

PET PP PS PVC

US

D / lb

Average price between 2008 and 2013Range of historical prices from 2008 to 2013

$0.85

$1.04

$0.64

5 year range of

Ingeo prices

Price Competitiveness Of Ingeo In NAEconomic

$0.89

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An Example – Performance in Ingeo

Rigid Packaging

Performs in an array of everyday settings

Excellent gloss, transparency and clarity

Exceptional flavor and aroma barrier

properties

Easy to shape, mold and emboss

Reduced density vs PET

Better rigidity which means packaging can

be lighter than ever before

20-30% package light weighting in

commercial practice

Excellent printability

Economic

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Atmosphere

Ingeo™ biopolymer

Corn/Feedstock Production

Sequester CO2 by corn production

CO2 CO2

N2O CH4CO2

Environmental

(Eco-Profile)

Calculation of the eco-profile means drawing a „box‟ around the process from field to factory

gate, and rigorously identifying and including anything which crosses the system boundary

Corn Milling,Fermentation, Polymerization

Production of: fuels, power, steam, fertilizers, water, acids, base, waste water treatment, etc.

Environ-

ment

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138

120

113

80

77

73

59

50

42

35

87

82

0 20 40 60 80 100 120 140 160

Nylon 66

Nylon 6

Polycarbonate

PS (HIPS/GPPS Avg)

PET (SSP)

PET (amorphous)

LD Polyethylene

Polypropylene

PVC (suspension)

Ingeo 2005

Ingeo 2009 CIT (current tech)

Ingeo Target

From cradle to polymer factory gate

[MJ / kg polymer]

-50%Greenhouse GasesGreenhouse Gases Non-renewable energy use

7.9

9.1

7.6

3.2

2.1

1.9

1.9

2.0

1.3

0.8

3.4

3.4

0 1 2 3 4 5 6 7 8 9 10

Nylon 66

Nylon 6

Polycarbonate

Polystyrene (HIPS/GPPS Avg)

PET (SSP)

PET (amorphous)

LD Polyethylene

Polypropylene

PVC (suspension)

Ingeo 2005

Ingeo 2009 CIT

Ingeo Target


[kg CO2 eq. / kg polymer]

-60%

Greenhouse Gases Non-renewable energy use

Environmental Benefits

Credentials

7.9

9.1

7.6

3.2

2.1

1.9

1.9

2.0

1.3

0.8

3.4

3.4

0 1 2 3 4 5 6 7 8 9 10

Nylon 66

Nylon 6

Polycarbonate

Polystyrene (HIPS/GPPS Avg)

PET (SSP)

PET (amorphous)

LD Polyethylene

Polypropylene

PVC (suspension)

Ingeo 2005

Ingeo 2009 CIT

Ingeo Target


[kg CO2 eq. / kg polymer]

Continuous improvement process

Ingeo 2005 Ingeo 2009 Ingeo target

138

120

113

80

77

73

59

50

42

35

87

82

0 20 40 60 80 100 120 140 160

Nylon 66

Nylon 6

Polycarbonate

PS (HIPS/GPPS Avg)

PET (SSP)

PET (amorphous)

LD Polyethylene

Polypropylene

PVC (suspension)

Ingeo 2005

Ingeo 2009 CIT (current tech)

Ingeo Target


[MJ / kg polymer]

>60%

less GHG

emission

s than

PET

>50%

less

energy

than

PS

Environ-

ment

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Mechanical

Recycle Feedstock

Recovery Compost Anaerobic

Digestion Energy

Recovery

Ingeo

Cradle

to

Cradle

Options

Landfill X X

Incumbent

Plastics IngeoEnd of Life

Environ-

ment

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Consumers…

Expect retailers and

brands to take small steps

on their behalf.

Biopolymers can transform a product or package from a

functional commodity cost item to a differentiable marketing

feature.

74% of the general population feel: “It is important for

companies not just to be profitable, but to be mindful of

their impact on the environment and society” Natural Marketing Institute (NMI), 2011 LOHAS Consumer Trends Database

Emotion

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Big Brands continue to move forward on

sustainability programs

• 5 billion products bio-packaged, end 2011

• Commits to begin conversion of its

product to 100 % biobased packaging

• Shifts to biobased plastic for

Health & Beauty lineup

• America’s favorite condiment repackaged in bio

• Automotive supply chain partnership

for bioplastics

• Complete replacement of

Polystyrene packaging

Emotion

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© 2013 NatureWorks LLC

• Carbon savings‒ 75% reduction in CO2 emissions

‒ Equivalent to 1,320 MT CO2/year savings

• Ingeo out performs polystyrene‒ Stronger/less breakage

‒ Better lid adherence

‒ Lower temperature filling (less energy use)

‒ Maintained line speed and shelf life

• Addresses consumer concerns‒ Well received by key opinion leaders

‒ Reduction in human toxicity

‒ Did NOT increase our retail price

Danone’s Stonyfield - in their own words:

“IMPACT OF INGEO CONVERSION”

Stonyfield CEO Gary_Hirschberg, Innovation Takes Root Conference Keynote:

“Inventing a WIN-WIN-WIN-WIN-WIN FUTURE”, February 21, 2012

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Food Serviceware

Nonwovens / Fibers

Rigids Films

Durables Lactides Bus. Dev.

What’s Resulted in

the Global Market

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Ingeo Innovations in

Rigids

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Food Serviceware

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Flexible Films

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Ingeo Innovations

in Fibers/Nonwovens

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Ingeo Innovations

in Durables

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www.innovationtakesroot.com or follow us at twitter @natureworks

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Thank You !

Tony Seers

[email protected]

Tel: +61 (0)3 5422 6904

0404 529 655

www.natureworksllc.com

Technology

Nature works overview Presented by Tony Seers -- SeePlas