Key Forces Impacting Global Petrochemicals...
Transcript of Key Forces Impacting Global Petrochemicals...
Key Forces Impacting Global Petrochemicals Markets
Presented by Dr. Peter Callais, VP Global Sales Townsend Solutions 1 November 2018
Indian Petrochem 2018 | November 1-2 Mumbai
© 2018 Townsend Polymer Services & Information, DBA Townsend Solutions. All rights reserved. No portion of this report may be photocopied, reproduced, retransmitted or otherwise distributed in any form without prior written consent, with the exception of any internal client distribution as may be permitted in the agreement between Townsend Solutions and client. Content reproduced or redistributed with Townsend Solutions’ permission must display “Source: Townsend Solutions”. The information contained herein is from sources considered reliable. However, because of the possibility of human or mechanical error by sources, its accuracy and completeness are not warranted, nor are the opinions and analyses which are based upon it, and to the extent permitted by law, Townsend Solutions shall not be liable for any errors or omissions or any loss, damage or expense incurred by reliance on information or any statement contained herein. For more information please contact Townsend Solutions corporate headquarters at +1-281-873-8733 or email [email protected].
Important Notices
Indian Petrochem 2018 | November 1-2 Mumbai
Corporate Profile
We are a culturally diverse team of handpicked petrochemical professionals. Our team is representative of over 20 different countries, allowing us a very broad global footprint, and unique understanding of local markets.
Townsend Solutions was founded to provide market research, analysis, strategic consulting and advisory services to the petrochemical industry.
1977
2018
What we do
- Consulting - Advisory Services - Market Reports - Databases - Resin Pricing - Intelligence - Surveys
Indian Petrochem 2018 | November 1-2 Mumbai
Global Megatrends
Megatrends are long-term, transformational processes on a global scale with a broad scope and dramatic impact. Plastics play a major role in supporting “quality of life”
Indian Petrochem 2018 | November 1-2 Mumbai
Global Megatrends
Examples of the impact in specific PE and/or PP applications
middle
class +3 billion
people
average life
expectancy +10
years
food needed +30%
road
transportation +100%
population
living in cities 70%
primary
energy
needed +45%
water
needed +50% population over
age 60 21.5%
Source: Townsend Solutions
Plastics have the opportunity to continue playing a major role in
supporting these macro trends impacting quality of life issues
Water Pipes: HDPE Bimodal PP Random
Wire & Cable: LDPE LLDPE
Consuming more, for longer
Geomembranes: LDPE LLDPE
Agricultural Film: LLDPE, EVA
Food Packaging, Shrink and Stretch Film, Crates and Pallets: HDPE/LLDPE/LDPE/PP
New Packaging: HDPE/LLDPE/LDPE PP
More wealth, more consumption
New Packaging: HDPE/LLDPE/LDPE PP
Solar Panels: EVA,POE
Indian Petrochem 2018 | November 1-2 Mumbai
*Total is not the sum of separate categories due to overlap
Plastic Packaging Segments Targeted for Fundamental Redesign & Innovation in the “New Plastics Economy”
• Total is not the sum of separate categories due to overlap • Source: World Economic Forum and Ellen MacArthur Foundation, The New Plastics Economy – Catalysing action (2017,
http://www.ellenmacarthurfoundation.org/publications)
PE/PP: weight reduction supported by new intelligent designs
PE/PP: mono-material (single or multi layers) based on PE or PP, replacing multi-material
PE/PP: replacing PVC, PS and EPS in several markets
PE/PP: risk of being replaced by other solutions
Page 7 | Confidential & Proprietary Annual Blow Molding Conference | October 8-10, 2018 Pittsburgh, Pennsylvania
Flexible vs Rigid in the Packaging Industry (kt)
5,332 6,640 8,206 10,676 1,663 2,021
2,417 3,156
7,620 9,873
11,680
15,004 13,294
16,118
18,038
21,566
-
10,000
20,000
30,000
40,000
50,000
60,000
2007 2013 2017 2022
PP + PE Flexible
PP Flex Food Pack PP Flex Non Food Pack
PE Food Pack PE Non-Food Pack
4,140 4,663 5,484
6,828
3,078
3,818
4,217
5,085
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
2007 2013 2017 2022
PP + PE Rigid
PP Inj Packaging PE Inj Packaging
7,218
8,481
9,701
11,913
4.2% py
3.0% py
27,909
34,652
40,341
50,403
3.8% py
4.6% py
Market share of flexibles keep growing, from 79% in 2007 to 81% in 2022 PE represents 74% of flexible and 43% of rigid packaging
Indian Petrochem 2018 | November 1-2 Mumbai
Where the consumers are: Population
Watch as India surpasses China in 2022 becoming the worlds most populous country, Nigeria grabs the third rank over the United States by 2049, and Pakistan becomes fifth by 2057 During the one-child policy, life expectancy in China improved from 67 to 75 and fertility rate decreased from 2.8 to 1.7 resulting in an increase in older citizens, and a decrease in population
Indian Petrochem 2018 | November 1-2 Mumbai
Numberof PeopleGlobally
Year
7.6 billion People in 2018
Global Pop CAGR since 1951 is 1.61%, but for Urban Pop its 2.51%
4.2 billion Urbanites in 2018
Total Pop
Urban Pop
Urbanization: Population Shift
Year Population Urban Pop Urban Pop % 1900 1.6 billion 0.2 billion 13 % 1951 2.6 billion 0.8 billion 30 % 1985 4.9 billion 2.0 billion 41 % 2018 7.6 billion 4.2 billion 55 %
Agriculture (film, geomembrane, etc.);
Automotive (paneling, parts, tires, seats, coverings);
Building & Construction (pipe, windows, flooring, siding, etc.);
Electrical & Electronic (power transmission, cabling, etc.);
Retail & Grocery (as people move to cities, become more urban, they use more packaged products less bulk).
Key Plastic Markets
Impacted
Indian Petrochem 2018 | November 1-2 Mumbai
Evolving Food Tastes
Healthier Choices Brand Experience Lifestyle Fit
Taste, Price Convenience
Food Tastes are Changing Fat-free, meet gluton-free, dairy-free and preservative-free! Consumers are looking for healthier choices across the board, driving innovation throughout the packaging space: • Resealable packaging / recloseable spouts • On-the-go packaging • Carton & pouch formats to replace BPA-lined cans • Slider & zipper locks • Leak proof closures • Powder/liquid mixing & scoop solutions (shots, supplements) • Better aesthetics / brand experience • Reverse labeling (calories in front) • Flexible multi-layer packaging versus rigid, monomaterial
packaging • Flexible packaging brings lightweight, pouch formats, flexibility…
but multi-layers packages are hard to recycle! Rigid mono-material packages brings recyclability
Indian Petrochem 2018 | November 1-2 Mumbai
• Speed and convenience are king • Both ship-from, and ship-to options are expanding at a breakneck
pace • Additional distribution centers to get closer to customers • Store-level fulfillment operations • Pop-up delivery services, vans, personal vehicles
- Products spend less time in secure palletized format - Opportunities for shifts in orientation and drops
significantly increased • In-store pickup is growing in popularity. Also known as
“Webrooming” aka “ROPO” (research online and purchase offline), the process of researching products online and then visiting a store to make a purchase is especially popular with millennials and is already being embraced by many big-box retailers.
• Subscription based relationships between brands & consumers
Other Key Forces
Packaging for the on-line shopping supply chain On-line shopping is THE disruptor for traditional retail based supply chains. With home delivery becoming more and more popular, packaging needs to be optimized to consider (new) transport and storage conditions
How can a package and a closure affect the purchasing decision in this new environment? !
Indian Petrochem 2018 | November 1-2 Mumbai
E-hailing, ride-sharing, and other new mobility services is changing consumer behavior
Carmakers, tech companies and governments alike are embracing the transformative implications of having more connected cars and, eventually, autonomous cars on the roads.
Mobility Innovation
Long range electric vehicles are now a reality, and are becoming increasingly more affordable. Bloomberg predicts that by 2040, a third of gasoline fueled vehicle sales will go to their electric counterparts.
Indian Petrochem 2018 | November 1-2 Mumbai
Globalization
A wave of nationalism has left many wondering if the trend toward greater global connection has reversed. Support for globalization is under-fire, and 2018/19 will be crucial years for its future, influenced by factors as diverse as the markets it represents.
At a minimum, the global “playbook” is being rewritten… with potentially disruptive impacts on a worldwide scale. On the other hand, business world is disappearing with country borders
• Shifting models for global supply chains
• Future of major trade agreements
• Resurgence of protectionism, tariffs, trade embargoes
• Impact on international and domestic power structures
• Slowing of growth in developing countries …
Indian Petrochem 2018 | November 1-2 Mumbai
Global Megatrends: Market Drivers
• Concern for the environment
• Health and wellness
• Time pressure on consumers
• Aging population
• Safety & security
• Cost and value effectiveness
• Brand differentiation
• Enhanced / maintained flavor
Market Drivers
• Light weight closures and neck finishes, flexible packaging
• New closures for healthy beverages
• Re-sealable / portable closures
• Lower removal torque
• Enhanced functionality / performance
• Consistent reliable tamper evidence
• Promotions and traceability
• Longer shelf-life
Plastics Packaging
Solutions
Plastics Key Advantages
Cost & Volume Reduction
Recyclability Energy & Water
Efficiency
Plastics packaging applications will continue to grow due to core advantages and ability to address key market needs
Indian Petrochem 2018 | November 1-2 Mumbai
Global Supply/Demand Analysis - Overall forecast
Globally, polyethylene capacity for the next 10 years will grow to almost 146 MM tons, almost 42 MM tons over 2015.
This extra volume will be spread out through different regions, 24% of that extra capacity coming from North America, followed by China with 23%.
For the last 5 years, North American capacity share has reduced from 23.4% (2010) to 19.5% (2015) and this boom of new capacities coming on line in the next 10 years will bring that share to 20.8%, still significantly less than past share as production continues to globalize for developing world polyethylene growth
China is definitely the winner in terms of capacity share moving from a 12.3% in 2010 to 17.0% in 2026 to provide product for the huge domestic market despite limited access to competitive feedstock
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
Polyethylene Capacity (KTPA)Afr ica
Japan
India
Central South America
Central Eastern
Europe
Western Europe
China
Asia Pacific
Middle East
North America
Source: Townsend Solutions
North America
21%
Middle East
17%
Asia Pacific
13%
China
17%
Western
Europe
10%
Central Eastern
Europe
8%
Central South
America
6%
India
4%
Japan
2%Africa
2%
2026 Polyethylene Capacity
Indian Petrochem 2018 | November 1-2 Mumbai
Globally, polyethylene demand will reach ~150MM tons in the next 15 years, a growth of 3.6% per year, driven
by demographics, consumption of plastics in the developing world, investment in infrastructure and rising of
urban living.
Since 2010, China became the largest consumer of polyethylene in the world with 22.4% of the global market
share while North America was 20.4%. In 2026, this difference will be even larger, 31.1% versus 17.2% as
China continues to grow per capita usage at a faster rate than North Americas usage.
While capacity is growing 42 MM tons, demand tends to grow 55 MM tons necessitating expected
additional capacity growth in the 2024-2026 timeframe.
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Japan
Africa
India
Central EasternEurope
Central SouthAmerica
Middle East
Asia Pacific
Western Europe
North America
China
Source: Townsend Solutions
Polyethylene Demand (kt/y)
China
31%
North America
17%Western Europe
10%
Asia Pacific
11%
Middle East
7%
Central South
America
5%
Central Eastern
Europe
5%
India
7%
Africa
5%
Japan
2%
2026 Polyethylene Demand
Global Supply/Demand Analysis - Overall forecast
Indian Petrochem 2018 | November 1-2 Mumbai
Capacity
We are entering a period of global overcapacity which will bring utilization rate to ~78% in 2019 from ~85% in 2015
Additional global capacity is required in the 2024-2026 timeframe (no formal announcements) as global utilization rate trends to above historical levels in ~2023. It takes 5-6 years for a greenfield site, speculative plants will need decide in the next 1-2 years for 2024-2026 startup.
Iran, based on conventional gas, and former Soviet Union countries, with more feedstock potentially available through natural gas, could provide additional capacity to the forecast
Demand
Demand continues to grow organically and steadily in the 3-4% per year range leading to a tightening of supply in 2024 and beyond with utilization rates at unsustainable levels above 85%
Africa and India provide demand upside if their very low per capita consumption rate rises faster than expected
Source: Townsend Solutions
kt
50%
55%
60%
65%
70%
75%
80%
85%
90%
95%
100%
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Capacity Domestic Demand Exports Production Imports Operating Rate
PE Global Supply/Demand Analysis – Overall forecast
Indian Petrochem 2018 | November 1-2 Mumbai
With a huge population and a consumption per capita still at the low levels, India is forecasted to grow at 7.9% per year for the next 15 years
Even with additional capacity been built (~3 MM tons) in the next 15 years, the new volume won’t be enough to sustain the consumption growth. This will create room for imports which will grow from an actual volume of 2.1 MM tons to 4 MM tons in the future.
Source: Townsend Solutions
kt
50%
55%
60%
65%
70%
75%
80%
85%
90%
95%
100%
0
2,000
4,000
6,000
8,000
10,000
12,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Capacity Domestic Demand Exports Production Imports Operating Rate
Regional Supply/Demand Forecasts – India
Indian Petrochem 2018 | November 1-2 Mumbai
Net Trade Balance
3,448
N.
America
-351
W.
Europe
1,735
Asia
Pacific
-1,642
Central
South
America
-2,285
Africa
-1,499
C.E.
Europe
-12,911
China
-13
Japan
15,620
Middle
East
-2,101
India
Over 70% of global PE usage is produced domestically within region/country
However, PE is a global business with six of the top ten global PE suppliers having production presence in multiple regions since footprint in different markets is critical for global customers. Global producers tend to maximize their returns based on access to markets, assets, grade (product) slate and customer penetration strategies.
Today, the cross-regional trade flows (~30% of total usage) of polyethylene are dominated by Middle Eastern product
Source: Townsend Solutions
2,000-4,000
1,000- 2,000
500 – 1,000
>4,000
Net Importer
Net Exporter
annual
volume
(kMT)
Major Global PE Trade Flows - 2017
Indian Petrochem 2018 | November 1-2 Mumbai
6,625
N.
America
-353
W.
Europe
3,786
Asia
Pacific
-906
Central
South
America
-3,483
Africa
C.E.
Europe
-19,239
China
57
Japan
Net Trade Balance
14,686
Middle
East
-4,002
India
2,000-4,000
1,000- 2,000
500 – 1,000
>4,000
2,829
Global trade volume is expected to grow by an additional ~17% between 2021 and 2026 to 36.9m tons annually
China remains the mega trade destination with 5 regions shipping over 1 MM tons per year
North America adds significant volume to four regions (China, WE, Africa, India) beyond current Central/South America flow of over 1m tons per year
India and Africa will become 2nd and 3rd largest import regions with combined volume of 7.5Mt/y
Source: Townsend Solutions
annual
volume
(kMT)
Net Importer
Net Exporter
Major Global Polyethylene Trade Flows – 2026
Indian Petrochem 2018 | November 1-2 Mumbai
Which products will be produced in US?
PE? mLL? C4? HDPE? Unimodal? Bimodal?
Which products can CSA accept?
Which products can Africa accept?
Which products can Europe accept?
Which products will be produced in Asia and ME?
PE? mLL? C4? HDPE? Unimodal? Bimodal?
PE Exports from USA – Real Impact
Indian Petrochem 2018 | November 1-2 Mumbai
Shale Well Gas Processing /
Fractionation
Cracker /
PE Facility
PE Converter
Plastics
Manufacturer
Consumer
Packaging Facility
Origination Port
Foreign
Destination Port
Pipeline Pipeline
Truck
Truck
Rail
Container
Ship
Truck
Rail
Truck
North America Supplying Domestic & Global PE Value Chain
Indian Petrochem 2018 | November 1-2 Mumbai
Exports from USA
HDPE27%
LDPE10%
LLDPE63%
USA Maritime Exports - 2018
HDPE41%
LDPE13%
LLDPE46%
USA Maritime Exports - 2015
Indian Petrochem 2018 | November 1-2 Mumbai
Exports from USA (HDPE & LLDPE)
Bi-Modal22%
HDPE59%
HMWHDPE18%
UHMWHDPE1%
USA Maritime Exports - 2015
Bi-Modal23%
HDPE55%
HMWHDPE20%
UHMWHDPE2%
USA Maritime Exports - 2018
C4LLDPE29%
C6LLDPE0%
C6mLLDPE58%
C8LLDPE3%
C8mLLDPE4%
POE4%
POP2%
USA Maritime Exports - 2018
C4LLDPE27%
C6LLDPE1%
C6mLLDPE43%
C8LLDPE11%
C8mLLDPE5%
POE10%
POP3%
USA Maritime Exports - 2015
41% 45%
Indian Petrochem 2018 | November 1-2 Mumbai
Stakeholder Impact (Simplified)
Indian Petrochem 2018 | November 1-2 Mumbai
Stakeholder Impact (Simplified)
Indian Petrochem 2018 | November 1-2 Mumbai
Impact on Media
June’s National Geographic
magazine cover resonated
across the world.
• Plastic debris (plastics leakage) in our oceans has emerged as a new global challenge
• Highly driven by growing economies in emerging regions
• Impact on plastics demand growth is nominal
Indian Petrochem 2018 | November 1-2 Mumbai
Stakeholder Impact (Simplified)
Indian Petrochem 2018 | November 1-2 Mumbai
Impact on Regulation and Legislation
As of mid-2018
over 850
cities/states in
more than 60
countries have
enacted legislation
to either ban or
charge a fee for
using plastic bags. Current locations where plastic bags were banned (green) or where fees are implemented (blue)
http://www.factorydirectpromos.com/plastic-bag-bans
Indian Petrochem 2018 | November 1-2 Mumbai
Stakeholder Impact (Simplified)
Indian Petrochem 2018 | November 1-2 Mumbai
Upcycling: Creative Value Addition
Upcycling, or Creative Reuse, is the transformation of used objects or materials to
materials or products of a higher quality or that are better for the environment.
• Nike upcycles post-consumer waste into simple polypropylene shoe packaging.
• Not only is the packaging for the NikeLab Air Max 1 Royal made from recycled materials, but it can also be used as a backpack.
Courtesy of dezeen
Indian Petrochem 2018 | November 1-2 Mumbai
Stakeholder Impact (Simplified)
Indian Petrochem 2018 | November 1-2 Mumbai
New mindset is driving the de-
coupling of economic growth from
the use of natural resources.
• Led by the Ellen MacArthur Foundation, The New Plastics Economy initiative brings together key stakeholders to rethink and redesign the future of plastics, starting with packaging.
• With a growing list of “core partners” including key brand owners like Coca-Cola, Mars, Danone, PepsiCo & Unilever and “participants” including producers like Borealis, BASF & DuPont, the initiative is gaining traction throughout the plastics value chain.
Sustainability: Circular Economy – Non-Government Organizations
Source: Ellen MacArthur Foundation
Indian Petrochem 2018 | November 1-2 Mumbai
Stakeholder Impact (Simplified)
Indian Petrochem 2018 | November 1-2 Mumbai
Industry Initiatives: The Recycling Partnership
• The Recycling Partnership helped generate $29 million in total infrastructure investment since 2014.
• The goal is to reach $33 million by the end of 2018.
• The Recycling Partnership is a national nonprofit working hand in hand with communities and companies to improve recycling for the environment, the economy, and families.
• The Recycling Partnership is made possible by corporate backers that spur matching government grants for local projects.
Indian Petrochem 2018 | November 1-2 Mumbai
Industry Initiatives: Investments
• LyondellBasell announced Nov. 27, 2017 that it will be a 50 / 50 partner with SUEZ in Quality Circular Polymers (QCP), a plastics recycling company in the Netherlands.
• Starting in 2018 the Sittard-Geleen facility will be capable of converting consumer waste into 35,000 tons of high quality polypropylene (PP) and high-density polyethylene (HDPE) per annum. They currently convert 25,000 tons pa, and plan to convert 50,000 tons pa before 2020.
• This is the first time plastics & chemicals and resource management join to realize the circular economy vision.
• In July 2016 Borealis finalized the acquisition of sister companies mtm plastics and mtm compact, technology leaders in the recycling of mixed post-consumer plastic waste and among Europe’s largest producers of post-consumer polyolefin recyclates.
• Borealis is marketing this acquisition as an opportunity to deepen their engagement in plastics recycling, driven by their commitment to the principals of circular economy.
Indian Petrochem 2018 | November 1-2 Mumbai
What is the Size of the Risk for Polyolefins?
Townsend methodology divided the
polyolefin market in two categories,
Consumable, a product that is intended
to be used up relatively quickly and
Durable, goods not for immediate
consumption and able to be kept for a
period of time. Later, each group was
split into other categories according to
the length that it takes to use the product
and the type of use we have, application
by application.
Indian Petrochem 2018 | November 1-2 Mumbai
For Polyethylene, Impact of Potential Regulations
Consumable 72.6%
Durable 27.4%
Polyethylene
8.9%
63.7%
14.6%
11.8%
1.0%
Multiple
Single
Long
Mid
Short
0.0% 20.0% 40.0% 60.0% 80.0%
Indian Petrochem 2018 | November 1-2 Mumbai
For Polypropylene, Impact of Potential Regulations
Consumable 62.1%
Durable 37.9%
Polypropylene
22.8%
39.3%
25.0%
9.1%
3.8%
Multiple
Single
Long
Mid
Short
0.0% 10.0% 20.0% 30.0% 40.0% 50.0%
Indian Petrochem 2018 | November 1-2 Mumbai
Megatrends are long-term, transformational processes on a global scale with a broad scope and dramatic impact
middle
class +3 billion
people
average life
expectancy +10
years
food needed +30%
road
transportation +100%
population
living in cities 70%
primary
energy
needed +45%
water
needed +50% population over
age 60 21.5%
Forecasted Changes Through or As Of 2050
Source: Townsend Solutions
Plastics have the opportunity to continue playing a major role in supporting these
macro trends impacting quality of life issues
Continuous necessity of additional ethylene/polyethylene and
propylene/polypropylene capacity to attend the global demand
Global Megatrends
Indian Petrochem 2018 | November 1-2 Mumbai
Wire and cable for energy transmission 45% more energy LLDPE ZN and LDPE
Solar panels High VA EVA and POE
Films for battery separators UHMWPE and PP
Medical devices such as syringes 10+ Years of Average Life
Expectancy
21.5% population over
60+
PP Homo and Random
Adult diapers Non Woven PP Homo
Medical apparel Non Woven PP Homo
Medicine bottles PP Homo and Random
and HDPE
New packaging and closure systems (lower torque) PP, HDPE, LLDPE and
mLL
Gas pipes HDPE Bimodal
Insulation and jacketing HDPE
TREND APPLICATION TECHNOLOGY
Megatrends Escalate High Value PE and PP Usage
Indian Petrochem 2018 | November 1-2 Mumbai
Drainage pipes 100% more roads HDPE Uni and Bimodal
Geotextiles for soil stabilization/infrastructure HDPE, LLDPE and PP
Agricultural films for crop protection 30% more food LLDPE ZN and mLL and
LDPE
Crates and pallets to transport and protect food HDPE Unimodal and PP
Homo and Impact
Shrink and stretch film to transport and protect food LLDPE ZN and mLL and
LDPE
New packaging and closure systems (lightweight) MLL, HDPE Bimodal and
PP
New packaging systems mLL, HDPE Bimodal and
PP
New packaging and closure systems (tamper
evidence/traceability) PP and HDPE Bimodal
New flexible packaging All polyolefins
New packaging and closure systems
(recyclability/monomaterial)
mLL, LLDPE Zn, HDPE
Bimodal and PP
TREND APPLICATION TECHNOLOGY
Megatrends Escalate High Value PE and PP Usage
Indian Petrochem 2018 | November 1-2 Mumbai
High-rise buildings (cold and hot water transportation) 3 billion people middle-
class
70% world population
living in cities
HDPE Bimodal, PEX and
PP Random
Sewage infrastructure HDPE Uni and Bimodal
and PP Impact
Packaging in general All polyolefins
New transportation modes and vehicles PP Impact and PP Homo
New and more efficient appliances PP Homo and Impact
Consumer products, housewares, furniture, etc PP Homo, Impact and
Random and HDPE
Potable, irrigation and wastewater pipes 50% more water needed HDPE Bimodal
Geomembranes for ground water protection LLDPE ZN and mLL
HDPE Bimodal
New electric motors, capacitor films PP Homo
Landfill protection, storage, chemical treatment ponds PP and HDPE Bimodal
TREND APPLICATION TECHNOLOGY
Megatrends Escalate High Value PE and PP Usage
Indian Petrochem 2018 | November 1-2 Mumbai
Downgauging and weight reduction New Plastics Economy High value Met LLDPE,
Bi-Modal HDPE (film),
HMWHDPE (injection)
Plastics Recycling Monomaterial, LLDPE is
the material of choice
Plastics Bans Single-use short life
plastics
(-) LESS STANDARD PEs and PPs
(+) VALUE ADDED PE AND PP SOLUTIONS
(+) GRADES THAT ALLOW DESIGN NEW END-PRODUCTS
THAT USE LESS RESIN, MORE EFFICIENT OR BETTER
PROPERTIES
Plastics have the opportunity to continue playing a major role in supporting these macro trends, impacting
quality of life issues
TREND APPLICATION TECHNOLOGY
Megatrends Escalate High Value PE and PP Usage
Indian Petrochem 2018 | November 1-2 Mumbai
Efficiency/Scale remains key. The business is global upstream and downstream.
Access to growing markets, implementing regional market strategies
Impossible to avoid having a recycling/sustainability strategy along with the main virgin resin producer strategy
Differentiation and selectiveness in markets and applications, especially into higher value-added markets
Final Thoughts
Indian Petrochem 2018 | November 1-2 Mumbai
Thank you!
Peter Callais Townsend Solutions
QUESTIONS?
Contact Us
NORTH AMERICA +1-281- 582-0150 Mr. Peter Callais [email protected]
EUROPE +1-281-582-0477 Mr. Roberto Ribeiro [email protected]
MIDDLE EAST +973 3 361 0928 Dr. Raed AlZubi [email protected]
LATIN AMERICA +55-11-99829-0134 Ms. Simone de Faria [email protected]
SE ASIA +65-9687-0420 Mr. Stephen Moore [email protected]
CHINA & TAIWAN +86-139-1011-6870 Mr. Stanley Wang [email protected]
INDIA +91 9727225049 Mr. Sunil Sharma [email protected]
JAPAN +81-90-8345-4741 Mr. Riichiro (Rick) Nagano [email protected]
SOUTH KOREA +82-10-9023-0127 Mr. JM Han [email protected]
CATALYSTS & TECHNOLOGY +1-281-582-0155 Mr. Cliff Lee [email protected]
FEEDSTOCKS, PLASTICS & POLYMERS +1-281-582-0477 Mr. Roberto Ribeiro [email protected]
PLASTIC ADDITIVES +1-281-582-0150 Mr. Peter Callais [email protected]
BIOPLASTICS & RECYCLING +55-11-97212-1751 Ms. Paula Leardini [email protected]
MARKETS & APPLICATIONS +1-281-582-0473 Ms. Barb Mitchell [email protected]
RESIN PRICING +1-281-582-0133 Ms. Terry Bourgeois [email protected]
Corporate Office 509 North Sam Houston Parkway East, Suite 500 Houston, Texas 77060 USA Phone: +1-281-873-8733 Fax: +1-281-875-1915 www.townsendsolutions.com