1 2 Marketing Purgex Purging Compounds in Portugal 3 Marketing - PowerPoint PPT Presentation

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2 Marketing Purgex Purging Compounds in Portugal

3 Marketing Purgex Purging Compounds in Portugal 5. Purgex performance case histories Agenda a. Consumer products 1. Neutrex, Inc. background b. Automotive 2. What is purging? 6. Purgex competition 3. Molding industry categories 7. CPC pricing strategy 4. Purgex purging compounds 8. Purgex benefits a. Concentrates 9. Purgex features b. Blends 10. Purgex representation opportunities

4 Neutrex, Inc. Background • Founded • Proprietary product • Domestic market • Foreign market • Houston operations • Purgex distribution • Purgex marketing • Neutrex objectives

5 What Is Purging? • Definition • Applications • Injection-machine purging • Extruder purging • Blow-molding purging

6 Molding Industry Categories Top 10 in U.S. • Electrical and electronics • Automotive • Consumer products • Industrial • Medical and pharmaceutical • Computers and business machines • Telecommunications • Appliances • Recreational and sporting goods • Lawn and garden

7 Purgex Purging Compounds • Basic composition - Concentrate - Blend • Purgex concentrate grades - Purgex 526 - Purgex 527 • Purgex blend grades - Purgex 456 Plus - Purgex 457 Plus - Purgex 3056 Plus - Purgex 3057 Plus

8 Purgex Concentrates • Six components - Lubricants - Foaming agents - Viscosity-control agents • Proprietary product • Unique manufacturing process • FDA approved • Material Safety Data Sheet (MSDS) • Raw material source

9 Purgex Blends • HDPE carrier - Special grade - Houston-specific • Other special components - Specialty polyolefin resin - Glass-filled HDPE • Custom blends - High glass content - Fluidity-control formulation

10 Purgex Performance Case Histories • Consumer product • Automotive • Tech Link – Hand out

11 Waste Bin Case History Part One Consumer product Industry: Waste bin Part description 2 pounds Part weight: 1500 ton Cincinnati injection molding machine Machine: HDPE Resin material: Black Original color: White Next color: $70 / hour Machine time cost: $2.30 / pound CPC cost: $0.62 / pound Resin cost:

12 Waste Bin Case History Part One – Cont. Comparison Material Balance CPC HDPE Purging material, # 100 14 0 Next resin, # 0 50 Number of 8 rejected parts 100 Rejected parts 16 in pounds of resin 25 Purge time 8 in minutes

13 Waste Bin Case History Part Two Comparative Economics CPC HDPE Purging material cost, $ 62.00 32.20 0.00 Next resin cost, $ 0.00 62.00 Reject material cost, $ 9.92 29.16 Machine time cost, $ 9.93 153.16 Total cost, $ 51.45 Cost saving per purge: $101.71

14 Automotive Door Panel Case History Part One Automotive Industry: Door panel Part description 10 pounds Part weight: 3000 ton injection molding machine Machine: Hot runner Auxiliary equipment: Co-polymer PP Resin material: Slate grey Original color: Light greystone Next color: $239 / hour Machine time cost: $2.20 / pound CPC cost: $0.35 / pound Resin cost:

15 Automotive Door Panel Case History Part One – Cont. Comparison Material Balance CPC PP Copolymer Purging material, # 300 45 0 Next resin, # 50 30 Number of 9 rejected parts 300 Rejected parts 90 in pounds of resin 40 Purge time 15 in minutes

16 Automotive Door Panel Case History Part Two Comparative Economics CPC PP Copolymer Purging material cost, $ 93.00 99.00 0.00 Next resin cost, $ 17.50 105.00 Reject material cost, $ 31.50 159.33 Machine time cost, $ 59.75 357.33 Total cost, $ 207.75 Cost saving per purge: $149.58

17 Purgex Performance Case Histories Tech Link Injection Molding Magazine

18 Purgex Competition • Asaclean • Dynapurge • Novachem • Ultra Purge • Klüberpurge

19 Purgex vs Asaclean Purgex Asaclean Purging Efficiency 10 8 Total material cost 17 12 Time MInutes 3.00 2.15 Avg CPC Cost $ / # 5 10 Rejection Rate Avg # Parts CPC = Commercial Rating System 10 = Perfect Purging Compound 0 = Worthless

20 Purgex vs Dynapurge Purgex Dynapurge Purging Efficiency 10 5 Total material cost 24 12 Time MInutes 2.25 2.15 Avg CPC Cost $ / # 5 20 Rejection Rate Avg # Parts CPC = Commercial Rating System 10 = Perfect Purging Compound 0 = Worthless

21 Purgex vs Novachem Purgex Novachem Purging Efficiency 10 8 Total material cost 20 12 Time MInutes 3.50 2.15 Avg CPC Cost $ / # 5 20 Rejection Rate Avg # Parts CPC = Commercial Rating System 10 = Perfect Purging Compound 0 = Worthless

22 Purgex vs Ultra Purge Purgex Ultra Purge Purging Efficiency 10 4 Total material cost 22 12 Time MInutes 3.50 2.15 Avg CPC Cost $ / # 5 22 Rejection Rate Avg # Parts CPC = Commercial Rating System 10 = Perfect Purging Compound 0 = Worthless

23 Purgex Benefits • Greater purging efficiency • Faster • Reduced rejects • Reduced maintenance

24 Purgex Features • Better safety • Neutralizes toxic and noxious gasses • Composition specification • Special multi-action

25 Purgex Representation Opportunity Purgex Sales Representative • Neutrex provides support, representative makes the sale • Neutrex invoices customer • Rep receives commission upon invoice payment • Exclusivity based on sales-volume commitment • Commission negotiated • Timing 2006

26 Purgex Representation Opportunity Purgex Sales Distributor • Neutrex provides support • Distributor buys Purgex for inventory • Distributor pays Neutrex • Distributor sells to and invoices customer • Exclusivity based on sales-volume commitment • Purgex price negotiated • Timing 2006

27 Purgex Pricing Strategy U.S.A. European Competitors Purgex CPC Suggested Price Range Price Range $2 / lb to $2.50 / lb € 6 / Kg Converted at $1.28 / € to €15 / Kg €3.44 / Kg to €4.30 / Kg Recommended Portugal Price Range € 6 / Kg to € 7 / Kg

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