Toll Compounding

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Toll Compounding

• A Vital Link In The
• Raw Material Supply Chain

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The Plastics Industry----Dynamic and Ever
Changing
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The Plastics Industry----Dynamic and Ever
Changing

• Resin suppliers are going back
• to their core competencies

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The Plastics Industry----Dynamic and Ever
Changing

• Resin suppliers are going back
• to their core competencies
• Fewer and fewer end use materials
• can be engineered in the reactor

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The Plastics Industry----Dynamic and Ever
Changing

• Resin suppliers have been, and continue to, go
  back to their core competencies
• Fewer and fewer materials can be
• engineered in the reactor
• The marketplace continues to demand an
• increasing number of unique materials

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The Plastics Industry----Dynamic and Ever
Changing

• Resin suppliers have been, and continue to, go
  back to their core competencies
• Fewer and fewer materials can be
• engineered in the reactor
• The marketplace continues to demand an
• increasing number of unique materials
• The market is growing!

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Lets Understand The Magnitude Of The Market(s)
We Play In
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Lets Understand The Magnitude Of The Market(s)
We Play In

• In 1999 overall thermoplastic demand was in
  excess of 77 Billion pounds

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The Overall Market Demand
(billion pounds) Material 1994 1999 2004
2009 Eng. Plastics 2.1 3.4 4.3
5.5 HDPE 10.7 13.8 16.8
20.0 LDPE 12.3 14.6 17.2
20.0 Polypro 8.9 13.0 16.5
20.7 Polystyrene 5.6 6.3 7.1
8.0 PVC 10.0 13.0 15.5 18.3 TPEs
.8 1.1 1.5 2.0 Others 9.1
12.2 14.2 16.2 Total Demand 59.5
77.4 93.2 110.7
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Lets Understand The Magnitude Of The Market(s)
We Play In

• In 1999 overall thermoplastic demand was in
  excess of 77 Billion pounds
• Independent compounders provided over 6 Billion
  of those pounds (8)

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Demand Supplied ByIndependent Compounders
(million pounds) Material 1994 1999 2004
2009 Eng. Plastics 930 1305 1645
2050 Polyethylene 825 1050 1270
1500 Polypropylene 715 970 1225
1510 Polystyrene 351 395 450
510 PVC 1365 1785 2155 2570 TPEs
405 600 835 1160 Total
Demand 4591 6105 7580 9300
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Lets Understand The Magnitude Of The Market(s)
We Play In

• In 1999 overall thermoplastic demand was in
  excess of 77 Billion pounds
• Independent compounders provided over 6 Billion
  of those pounds (8)
• Growth for independent compounders between 1994
  and 1999 was about 5.9
• Growth between 1999 and 2004 is forecasted to be
  4.4
• Engineered thermoplastics are forecasted to grow
  at 4.7

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Growth RatesIndependent Compounders
(million pounds) Matl 1994 1999
2004 2009 99/94 04/99 ETPs
930 1305 1645 2050 7.0
4.7 PE 825 1050 1270 1500
4.9 3.9 PVC 1365 1785 2155
2570 5.5 3.8 Others 1471
1965 2510 3180 6.0 5.0 Total
4591 6105 7580 9300 5.9
4.4 GDP 7338 8848 10030 11430
3.8 2.5 (bill )
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Material/Product Needs Of The Market Are Being
Filled By
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Material/Product Needs Of The Market Are Being
Filled By

• Captive Compounding Operations

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Material/Product Needs Of The Market Are Being
Filled By

• Captive Compounding Operations
• Custom Compounders

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Material/Product Needs Of The Market Are Being
Filled By

• Captive Compounding Operations
• Custom Compounders
• Processor Owned Compounders

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Material/Product Needs Of The Market Are Being
Filled By

• Captive Compounding Operations
• Custom Compounders
• Processor Owned Compounders
• Toll Compounders

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The Role Each Plays In The Supply Chain
Captive Compounder
Resin Manufacturer
Toll Compounder
Concentrate Supplier
Additive Supplier
Custom Compounder
Processor
Processor Owned Cmpd.
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Focus On Toll Compounding
Concerns, Issues, MythsAre they valid? Is there
a stigma attached to what we do?
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Focus On Toll Compounding
Concerns, Issues, MythsAre they valid?
There are small tollers and there are large
tollers
Barriers to entry are minimal
Some are professional----some are garage shops
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Are Toll Compounders Poor Cousins?

• Safety

• Quality

• Technology

• Confidentiality/Integrity

• Logistical Support

• Environment

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The Fact Is.

• These are the very issues we focus on
  every day to be the best we can be.
• Today, more than ever before, we are
• a vital link in the supply chain between
• the prime resin supplier and the
• market place.

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The Role We Play In The Supply Chain
Resin Manufacturer
Toll Compounder
Concentrate Supplier
Additive Supplier
Processor
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What Makes For A Successful Toll Compounder In
Our Industry?
What is the Technology we bring? What are
the Services we provide? What is the
Role we play?
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Yes, We Bring Conversion Capacity And Services

• Compounding
• Blending
• Drying
• Crystallization
• Grinding
• Packaging
• Testing
• Warehousing

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But We Bring More
First, and foremost, we are a Solution Provider
We bring value through assisting our customers
solve their customers problems. Their
customers are our first priority.
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And More..
We provide on going, consistent, high quality
products and services With an eye towards
continual Improvement.
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And More

• A Commitment To HSE
• To the health and safety of
• our Associates
• To care for the environment

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Market Survey Customers Expectations Of Their
Toll Compounders
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Our Business Model Maximizing Your Business By
Design
Partnership Maximization
Shared Vision
High Performance Assurance
Open Communications
Customer Visits
Clear Expectations
Quality Audits
Performance Maximization
Process Maximization
Collaborative Solutions
Continuous Improvement
Quality Plan
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In Summary
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In Summary
We build a long term strategic relationship.
We provide more than just a tactical solution
to a short term problem.
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In Summary
We manage our customers logistics to make the
Partnership hassle free.
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In Summary

• Professionalism
• Competency
• Safety of our Associates
• Care for the environment
• Confidentiality