Packaging Paper DSR in Packaging grows well above tonnage growth - - PDF document

SLIDE 1

Onsite GPAM Technology Update “What’s Old Is New”

Taipei, Taiwan March 21, 2017

Paper Chemicals

4 On Site Generation Equipment 4 On Site Generation Equipment 5 Case Studies in Containerboard Grades 5 Case Studies in Containerboard Grades 3 Luredur Introduction and Chemistry 3 Luredur Introduction and Chemistry 2 Dry Strength Theory 2 Dry Strength Theory

Luredur Plus 555/HC

Agenda

6 Questions & Discussion 6 Questions & Discussion 1 Dry Strength Market Update

Paper Chemicals

3

INTERNAL

3/9/2017

Packaging Paper grows in line with GDP

307 235 210 2026 2016 2011 2.7% 2.3% 2.6% 2.6% GDP Growth Paper Growth 58 50 48 2026 2016 2011

Packaging Paper: Production & Growth

(2011 vs. 2016 vs. 2026) RISI Forecast 2016

18 13 12 2026 2016 2011 75 60 54 2026 2016 2011 96 2016 112 2011 2026 155 1.6% 2.2% 3.3% 3.1% 3.3% 1.7% 0.7% 2.4%

Positive drivers are related to GDP (population and income growth, globalization) Trend growing e-commerce, some light weighting

SOUTH AMERICA

Paper Chemicals

4 497 385

2.207

1794 Starch, surface Synthetic Strength vs Starch Synthetc Dry Strength c Starch, wet-end 136 49 301 NA SA EMEA AP Synthetic Dry Strength by region 11

497

27 6 97 10 4 PVAm Dry Strength Chemistry

497

gPAM amphoPAM

Comments:

• Nothing will replace surface starch as the most

cost effective strength enhancer, if you have a size press

• Synthetic dry strength has surpassed wet end

starch and is fastest growing strength segment

• In most of the Asian countries amphoPAM is

still the synthetic chemical of choice for strength

• GPAM dominates NA and is finding growing

applications elsewhere

• On site GPAM has generated renewed interest

in an older technology due to increased strength and drainage performance, extended shelf life, and reduced freight costs

Packaging Paper

DSR in Packaging grows well above tonnage growth rate

Market: 497 Million USD

Hofmann & others 20

Paper Chemicals

Historical Look at Intellectual Property of GPAM Technologies

Tissue

• 1970’s American Cyanamide develops first

GPAM patent for Temporary Wet Strength in tissue

• Based on 10K-20K Molecular Weight crosslinked

with glyoxal

• 1998- 2nd generation Cytec patent with

improved dispersability

• Based on 2.5K-5.0K Molecular Weight crosslinked

with glyoxal

• 2011- 3rd generation Cytec patent balances

TWS development and dispersability

Packaging

• 1990’s Hercules pioneers GPAM for strength

improvement in 100% recycle linerboard using Hercobond 1000. NA GPAM market explodes!

• Based on 1970 technology
• 2010-BASF granted patent utilizing an
• n site manufacturing platform. (Only

available in NA)

• First patent designed for higher RC, SCT, & Burst

ever! (Introduced to Indonesia 2015)

• 2013-Buckman and Solenis granted first

high charge GPAM patents

• Provides additional drainage over standard GPAM’s
• 2017-BASF granted first high charge on

site GPAM patent

9-Mar-17 5

Paper Chemicals

4 On Site Generation Equipment 4 On Site Generation Equipment 5 Case Studies in Containerboard Grades 5 Case Studies in Containerboard Grades 3 Luredur Introduction and Chemistry 3 Luredur Introduction and Chemistry 2 Dry Strength Theory

Luredur Plus 555/HC

Agenda

6 Questions & Discussion 6 Questions & Discussion 1 Dry Strength Market Update 1 Dry Strength Market Update

SLIDE 2

Paper Chemicals

Fiber Contact Area

Optimal Contact Area Bonded Area Practical Contact Area

Paper Chemicals

Chemical bonds – associated strength

HYDROGEN BONDING

• 4-6 kcal/mole
• Cellulose, Starch, Mechanical Formation Aids

IONIC BONDING

• 10-30 kcal/mole
• Dual Polymer Systems, Amphoteric Copolymers

COVALENT BONDING

• 60-80 kcal/mole
• PAE Wet Strength Resins, Glyoxalated Polyacrylamide (g-PAM)

Paper Chemicals

4 On Site Generation Equipment 4 On Site Generation Equipment 5 Case Studies in Containerboard Grades 5 Case Studies in Containerboard Grades 3 Luredur Introduction and Chemistry 2 Dry Strength Theory

Luredur Plus 555/HC

Agenda

6 Questions & Discussion 6 Questions & Discussion 1 Dry Strength Market Update 1 Dry Strength Market Update

Paper Chemicals

Technology Overview

9-Mar-17 10

Luredur Plus 555/HC is…

Most effective pure strength additive available A cellulose reactive cationic dry strength resin Chemically modified at customer site for optimal performance BASF patent protected technology

Paper Chemicals

Technology Overview

9-Mar-17 11

Luredur Plus 555/HC does…

Provide a linear strength response to very high contribution level Increase SCT, Burst, Concora, Tensile, and Ply Bond of paper and board Raise productivity via faster wet end water removal and light-weighting Deliver a very high return on investment

Paper Chemicals

Application Performance

9-Mar-17 12

Typical Containerboard High Strength Specialty

Physical Test 1 – 3 kg 3 – 6 kg

SCT / Ring Crush (%) + 5 – 15 +15 – 35 Burst (%) + 8 – 15 + 15 – 40 Tensile (%) + 5 – 12 + 12 – 25 CMT (Concora) (%) +10 – 25 + 25 – 40 Productivity Gain (%) + 4 – 10 + 8 to 15 Weight Reduction (%)

• 4 to 8

N/A

SLIDE 3

Paper Chemicals

Mechanism of Strength Development

9-Mar-17 13

Luredur Structure

Cationic, cross-linked, cellulose reactive PAM

Luredur forms covalent bonds with cellulose fiber

Paper Chemicals

Comparison to Competitive g-PAMs

Luredur process facilitates: Building a more effective molecule Ease of use for the customer More secure supply to customer Feature Delivered g-PAMs BASF g-PAM

Mw of Base cPAM 10 – 15K 10-20 times greater Polymer bound aldehyde 1.0 1.98 Delivered Active Content 8 to 12% 30% (cPAM), 40% (glyoxal) Shelf Life in Summer 2 to 3 weeks 3 months

Paper Chemicals

4 On Site Generation Equipment 5 Case Studies in Containerboard Grades 3 Luredur Introduction and Chemistry 2 Dry Strength Theory

Luredur Plus 555/HC

Agenda

6 Questions & Discussion 1 Dry Strength Market Update

Paper Chemicals

On-site Generation Overview

Finished Product Bulk Storage Liquid cPAM

30% active

Glyoxal

40% active Base Acid

g-PAM make-down

2% active

Fresh Water Turbidity Paper Chemicals PLC controlled with touch screen HMI and remote monitoring capability Dim: 2.44m L x 2.21m H x 1.40m W

Generator Control Skid

17

Paper Chemicals

18

108” (275 cm) 128” (325 cm) 144” (365 cm) 89” Note: Measurements are to the base of the adjustable pads. 8”

Dimensions

Mix Tank

SLIDE 4

Paper Chemicals

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Turbidity Meter and Eductors

Light source Light detector Sample tube Drain line Fill line Overflow line Eductors Caustic eductor Acid eductor Turbidity Meter

Paper Chemicals

CPAM Glyoxal Transfer/Recir.

Diaphragm pump used to pump viscous fluids, reliability, ease

• f maintenance, and familiarity

Goulds centrifugal pump

Pumps

Paper Chemicals

pH Probes

pH probes Retractable housing Buffer pump – Automatically provides 10 pH buffer to calibrate probes at 0.3 differential Pneumatic lines Buffer lines Paper Chemicals

4 On Site Generation Equipment 5 Case Studies in Containerboard Grades 3 Luredur Introduction and Chemistry 2 Dry Strength Theory

Luredur Plus 555/HC

Agenda

6 Questions & Discussion 1 Dry Strength Market Update

Paper Chemicals

Luredur Plus 555/HC Case Studies

Results of Luredur applications in:

• High Performance Linerboard
• High Performance Medium

Assumptions for Value Calculations

• Incremental productivity is valued at $250 USD per ton
• Fiber savings is valued at $150 USD per ton

Confidential

9-Mar-17 23

Paper Chemicals

Linerboard / Medium

North America

Grades: Liner & medium Furnish: Recycled; 75% PCW / 25% OCC Ash: 11-15% - from waste paper pH: Neutral Production: 370K TPY Basis weight: 112 – 195 g/m² PM: 2 ply gap former, ENP Surface: Size press PMV: 750 - 980 m/min

Overview Wet-End before Luredur

Retention Dry cPAM – 0.5 kg/T Dry Strength: Competitive g-PAM – 6 kg/T 30 – 40 kg/T pearl starch at size press

Objectives on 171g Liner

1. Reduce dry strength additive cost/T 2. Lower basis weight 3. Increase productivity

BASF Approach

1. Addition of 3 kg/T Luredur Plus 555 2. Remove competitive g-PAM

Results

1. Lower basis weight from 178 to 171g/m2 (4%) 2. Raise PM speed from 860 to 895 m/min (4%) 3. $12/T savings on dry strength 4. Medium produced with single sided size press

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Customer Benefit

Net Value: $16/T (added production and fiber savings) $15 - 20/T (estimated DSR savings)

SLIDE 5

Paper Chemicals

High Performance Medium

North America

Grades: Medium Furnish: Recycled; 75% OCC / 25% MOW pH: Neutral Production: 210K Tons annually Basis weight: 112 – 176 g/m² PM: 4 ply Kobayashi former PMV: 500 - 740 m/min

Overview Wet-End before Luredur

Retention Coagulant 1.4 kg/T Dry aPAM 0.1 kg/T Dry Strength: Competitive high charge g-PAM – 2.6 kg/T

Objectives on 112g medium

1. Increase SCT 2. Reduce basis weight 3. Raise productivity

BASF Approach

1. Addition of 2 kg/T Luredur Plus 555 2. Remove competitive g-PAM

Results

1. Increased SCT Index by 10% 2. Increased productivity 5% 3. Reduced basis weight 7% 4. $3 - $4/T savings on dry strength

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Customer Benefit

Net Value: $23/T (added production and fiber savings)

$3 – 4/T (estimated DSR savings)

Paper Chemicals Grades: HP Linerboard & Medium Furnish: Recycled; 100% local OCC pH: Neutral Production: 25-28 T/h Basis weight: 125g/m2, 112g/m2 and occasionally150 g/m2 PM: 2 ply Fourdrinier PMV: 650-700 m/min Size Press: Puddle

Overview Incumbent Wet-End

Dry Strength: Cationic Starch, 10 kg/T Ampho Starch 8.5 kg/T Ampho PAM 10 kg/T Size press starch 40-45kg/T Retention: Cationic Emulsion 0.6kg/T

Objectives on 125 g/m2 HP Linerboard

1. Maintain 1.9 burst index 2. Reduce chemical cost 3. Raise productivity

BASF Approach

1. Eliminate amphoPAM & ampho starch 2. Fix cationic starch at 15 kg/T 3. Vary LP 555 from 2.0-2.5 kg/T to maintain strength and speed

Results

1. Reduced chemical cost 15% 2. Simplified wet end control 3. Provided tool to run without size press (when required)

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Recycled Linerboard

Indonesia

Update: By-pass Size press for Liner and Medium Grades up to 125 g/m2 Paper Chemicals

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Overview Objectives

Grade: AA/U grade Liner board PM: 4 layers fourdrinier Pulp furnish: Top: 50-100% UKP + 50% AOCC; UTop: 100% AOCC LF; Filler: 100% AOCC SF + Sludge; Bottom: AOCC LF + SF Basis Weight: 220 – 320 gsm Production: 200.000 t/y(Max. 25t/h) Speed: 280 ~ 450 m/min pH: 6.8-7.2

• 1. Increase paper burst index strength by 10% or more

with 2 kg/t of LUREDUR PLUS 555.

• 2. Increase PM speed with 20 m/min.

Machine Overview Chemicals Objectives BASF Approach Results

ALUM: 8 - 12 kg/t DSR: 7 - 10 kg/t AKD: 8 kg/t (top/bottom layer) RDA cPAM200 g/t + Bentonite2 kg/t

• 1. For 280 and 300 gsm, burst Index increased from 2.9

to 3.07 kPa•m2/g on average (6%) with 1.6 kg/t LP 555;

• 2. For 280 gsm, burst Index increased from 2.90 to 3.18

kPa•m2/g on average (10%) with 2.5 kg/t LP 555;

• 3. Folding increased more 20% (118->146)
• 4. RCT increased by more than 10%
• 5. Dewatering filler ply increased and slice was

increased from 17.6 to 19 mm Dosing 2-3kg/t (active) Luredur Plus 555 at suction side

• f machine chest pump

High Performance Linerboard

China (Recent Trial)

Paper Chemicals

Luredur Plus 555

Thank You!

Questions and Discussion?

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