A New Tub Opportunity

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A New Tub Opportunity
T

• TSEs-EcoSpray Polyurethane System Provides a
  Green, ZERO Styrene, Ultra Low Emission, Solvent
  Free Option For Innovative Manufacturers

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E
INDUSTRIES
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TSE INDUSTRIES, INC.5260 113th Avenue North,
Clearwater, Florida 33760800-237-7634 FAX
727-572-0415www.TSE-Industries.com
VP SPECIALTY CHEMICAS DIVISION Tony
Rindone 727-540-1310 757-698-5031
cell Tony.Rindone_at_TSE-Industries.com
Composite Business Development Manager Mike
Raday 727-540-1322 757-510-2655
cell Mike.Raday_at_TSE-Industries.com
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Current Polyester Tub Scenario

• Thermoset polyester extensively uses both styrene
  monomer and MEKP as volatile solvents risk of
  fires in process storage areas
• Styrene monomer has been (in some studies) shown
  to be a carcinogen, and is currently classified
  as a suspected carcinogen. It also can cause CNS
  issues, and lead to fatal cardiac sensitization
  (IARC). Styrene is classified as a hazardous air
  pollutant, and emissions are strictly regulated
  as a VOC.
• Enzymes have recently been found in human lungs
  that convert styrene into styrene oxide, which
  has developed tumors in lungs of mice.
• MEKP is a severe skin irritant, requiring careful
  treatment as a hazardous waste. Must be disposed
  of at a RCRA approved facility.
• Styrene monomer may soon be regulated even
  tighter, limiting production and forcing several
  large industries to scramble for alternatives.
  (spa, tub, RV, boat, etc)

A New Strategic Approach is Needed
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Impact of Styrene and MEKP Useage

• Limitations on emissions affect plant output
• Styrene permits unavailable in certain areas
  limiting growth
• Future potential for worker exposure lawsuits
• Expensive ventilation and incineration equipment
• Hazardous waste handling adds expense
• Yield losses are high, due to styrene losses
• Potential fire issues due to flammability of
  styrene and MEKP

The Use of Styrene is Vulnerable to Legislative
Changes
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Polyurethane Background

• Polyurethane is an extremely versatile chemistry
  that allows creation of both thermoplastics and
  thermosetting plastics ranging from very soft to
  hard and rigid. As with polyesters, two liquid
  components are used, plus catalysts, fillers and
  reinforcements. The two basic components for most
  common polyurethanes are isocyanates and polyols.
  
• No styrene monomer, MEKP or solvents are used.
  Some isocyanates are regulated, but handling and
  disposal is much less hazardous and much less
  expensive than for styrene and MEKP.
• Polyurethanes generally have higher tensile
  strength and impact vs polyesters, but slightly
  lower stiffness or flexural properties.
  Optimization of the fiberglass reinforcement
  (chop length glass percentage) can close the
  stiffness gap. Polyurethanes can also be foamed
  to lower densities have much quicker cycle
  times than polyesters.
• Polyurethanes are more expensive materials than
  polyesters, but that cost can be offset by faster
  cycle times, lower overall costs and shorter oven
  cure times.

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MDI POLYOL KEY RM PROCESS FLOW

• Production of MDI
• Well Head ?Refinery? Benzene ?Nitrobenzene?
  Aniline?MDA?MDI
• Producton of Polyol
• Well head ?Cracker ?Propylene ? Propylene Oxide
  ?Polyol

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POLYURETHANE ADVANTAGESVSFILLED STYRENE ESTERS

• ABSENCE OF ANY MONOMERIC STYRENE OR ANY OTHER
  VOCs THAT CAN BE EMITTED INTO THE ATMOSPHERE
  (NEGLIGIBLE VOCs)
• FASTER APPLICATION, CURING TIMES AND DEMOLD TIMES
  RESULTING IN 50 TO 70 FASTER PRODUCTION CYCLE
  TIMES
• POLYURETHANES ARE LESS BRITTLE AND ABSORB ENERGY
  MORE READILY UNDER IMPACT AND SHOCK LOADINGS
• SIMILAR TENSILE AND FLEXURAL STRENGTHS
• ELASTOMERIC MEMORY IS RETAINED HELPING IN IMPACT
  RESISTANCE AND FATIGUE TOLERANCE
• SUPERIOR ABRASION RESISTANCE
• IMPROVED ADHESION TO BOTH ACRYLIC, ABS BACKED
  ACRYLIC AND POLYCARONATE ABS BACKED ACRYLIC
• GOOD HYDROLYSIS RESISTANCE AND RELATIVELY LOW
  WATER ABSORBTION

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POLYURETHANE HEALTH AND SAFETY

• SPRAY OPERATION MUST BE DONE IN A WELL VENTILATED
  BOOTH WITH CLIMATE CONTROL
• SPRAY GUN OPERATORS AND OTHER BOOTH OCCUPANTS
  MUST WEAR FULL-FACE, POSITIVE PRESSURE AIR-LINE
  RESPIRATORS OR CARTRIDGE RESPIRATORS TO PREVENT
  INHALATION OF MIST AND VAPORS AND APPROPIATE
  PROTECTIVE CLOTHING, BOOTS AND GLOVES TO PREVENT
  SKIN CONTACT
• FLASH POINTS OF ISO AND POLYOL ARE CLOSE TO 400
  ºf
• VOLATILITY IS EXTREMELY LOW, IE, ONLY 1 /
  1,800,000 OF THE VAPOR PRESSURE OF WATER
• REACTED WASTE IS NON-HAZARDOUS
• HS INFORMATION ON MSDS
• Polymeric Isocyanate - This product is a
  respiratory irritant and potential respiratory
  sensitizer. Moderate skin irritant. The
  ingredients of this product are not classified as
  carcinogenic by ACGIH or IARC, not regulated as
  carcinogens by OSHA, and not listed as
  carcinogens by NTP.
• Polymeric isocyanate - This material is not a
  hazardous waste under RCRA 40 CFR 261. Small
  quantities should be treated with a decontaminant
  solution. The treated waste is not a hazardous
  material under RCRA 40 CFR 261

ISOCYANATES ARE CLASSIFIED (N120) BY THE EPA AS A
REPORTABLE ONLY ON AN ANNUAL BASIS
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RECOMMENDATIONS FOR SPRAYING POLYURETHANES

• IF EMISSIONS lt50 PPB, A HALF FACE DUAL CARTRIDGE
  AIR PURIFYING RESPIRATOR IS OKAY FOR PROTECTIONS
  (MIST SUPPRESSOR WITH ORGANIC CARTRIDGE) 10 X OF
  EXPOSURE SAFETY FACTOR
• IF EMISSIONS ARE lt250 PPB, A FULL FACE DUAL
  CARTRIDGE AIR PURIFYING RESPIRATOR MUST BE
  SPECIFIED 50 X EXPOSURE SAFETY FACTOR

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TSE Advantage

• Leader in custom polyurethane compounding
• Provides on site, multi skilled tech service team
  (TSE as resin supplier, and MVP as pump equipment
  vendor)
• On site training support, both for the process
  and handling of chemicals
• TSE has proven experience using polyurethane
  resins to pass ANSI testing,as well as tougher
  customer internal specs
• TSE development has created a lighter
  polyurethane reinforced tub vs tubs reinforced
  with the standard filled styrene polyester
• Significant freight savings due to lower freight
  classification
• Lower weight makes it easier for contractors to
  handle

TSE is the Best Choice for a Strategic
Polyurethane Partner
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Benefits of TSE-EcoSpray Polyurethane
New Markets

• Gain market share and penetrate new markets.
  Green polyurethane resins are an alternative to
  filled polyesters.
• Provide higher throughput, with the potential of
  plant consolidation.
• Savings in process labour variable cost
  reduction.
• Freight savings by reducing weight of tubs
• Improved yields and reduced returns/rejects,
  resulting in lower cost
• Elimination of mixing step of the filler in the
  resin (mix room) quality and cost improvement.
• Eliminate the presence of styrene MEKP, which
  are flammable chemicals, lowering insurance
  requirements and reducing risk of fires.
• Eliminate environmental problems, odours of
  styrene in process at fence line, and hazardous
  waste issues.
• Eliminate HS exposure problems with styrene.
  Exposure limit for employees are presently being
  reviewed and might be reduced to as low as 20
  ppm. Styrene might be re-classified by EPA as a
  potential carcinogen in 2007.
• Eliminates emission permit issues and risks
  associated with tighter future permits
• Polymeric isocyanate does require safe handling,
  but is not volatile, is not a hazardous waste,
  and is not a carcinogen. Only annual reporting is
  required by EPA.

Lower Costs Lean Mfg.
Environmental
Provides a cost effective, Lean, environmentally
friendly option to increase market penetration
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Partners Involved
TSE Industries Inc. Clearwater, Florida
Innovative polyurethane supplier with expertise
in formulation and processing. Provides custom
formulations and start up support/on site
training.
MVP Industries
Current pump and applicator supplier responsible
for polyurethane equipment modifications.
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PRODUCT
TSE Polyurethane Ready to Use System
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PRODUCT
TSE Polyurethane Ready to Use System
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PRODUCT
TSE Polyurethane Ready to Use System
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Fixtures Made With TSE Polyurethane
No Shrink, tight Fitting Fixtures
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PRODUCT
- TSE Aliphatic PU Gel coat PU Resin
TSE Polyurethane Ready to Use System
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PRODUCT
TSE Polyurethane Ready to Use System
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PRODUCT - TSE Aliphatic Solid Surface
TSE Polyurethane Ready to Use System
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Tangible Savings PU Resin vs Styene Resin

• Total Elimination of styrene emission loss from
  spraying and during curing
• Reduction of overspray
• Freight savings due to lower cost freight
  classification
• Labor headcount reduction Overtime expense
  reduction
• Significant improvement in right first time tubs
  conventional and air tubs
• Reduction in cure time from 90 mins to 30 mins
• 4.5 to 5 min cycle times for manual lines
  conventional tubs, ie, 92 to 102 tubs/day
• 20 min cycle times times for manual lines air
  tubs, ie, 24 tubs per day

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Intangible Savings Styrene Ester vs PU

• Health less worker exposure to styrene
  monomer vapors
• Safety less risk of fires from flammable
  polyester and MEKP catalyst
• Environmental eliminates need for emissions
  permit and eliminate odors in process area and at
  fenceline
• Less Rejects - tighter fitting polyurethane
  fixtures will significantly reduce dimensional
  rejects
• Volume Growth - possible GREEN certification
  offers potential for product differentiation and
  qualification for clean air buildings. Increase
  capacity is available due to significant
  reduction in process cycle time
• Frees up Floor Space due to significant
  improvement in right first time and reduction in
  cure time from 90 mins to 30 mins
• Adhesion improvement in adhesion to Acrylic,
  ABS backed acrylic and Polycarbonate ABS backed
  acrylic

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Capital Estimate Ready to Use Polyol ISO
A. 1 MVP 11 Pump with Recycle and Chopper
22,000 B. Ovens to house two tote bins
25,000 C. Dehumidification equipment and
ventilation 35,000 D. 2
agitator for tote bins in ovens 5,000 E. 1
post cure oven _at_ 135ºF to 150ºF 30,000 F. 1
(16 ft) cooling area with over head fans
8,000 G. 1 breathing air compressor with
piping to spray booth area 2,000 SUB-TOTAL
127,000 Optional Conveyor System 50,000??
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ANSI CERTIFICATION RESULTS

• STATUS OF RESULTS
•  
• 1. ANSI Tests done on cut pieces
• Thermal resistance (blister)                      
                           PASS
• Water absorption through cross section            
                  PASS
• Thermal shock PASS
• 2. ANSI Tests done on the whole unit Acyrlic,
  ABS, Polycarbonate/ABS
• Drain fitting connection                          
                                    PASS
• Point impact load test                            
                                     PASS
• Load on rim                                       
                                         PASS
• Load on bottom                                    
                                      PASS
• Radii load test                                   
                                         PASS
• Load on supported area                            
                                 PASS
• Fire resistance PASS
• Adhesion test PASS

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Future Product Directions

• Capitalize on the lack of styrene emissions to
  enter highly regulated markets (western US, for
  example)
• A real opportunity to lead the way in these
  previously closed geographies if permits issues
  have restricted your entry
• Exploit the green, ie, elimination of styrene
  emissions, characteristics as a green option
• Brand new market opportunity the time is right!
• Segment the market by using different backings
  (low density foam, high density foam, colors,
  glossy skin, etc.)
• A rare chance to differentiate and share shift
  from competitors
• Position aliphatic PU Gel coat on a tub with PU
  reinforcement as a product offering that bridges
  the gap between standard gel coats and high end
  acrylics
• New market opportunity
• Produce an aliphatic PU Gel coat, tough shower
  with PU reinforcement to enter the Home Depot and
  Lowes arena with a more reliable product
• New market opportunity

Presents a Chance to Break Free of the Pack
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In Closing
TSE is committed to helping those organizations
that truly want and/or need to convert from
polyester to TSEs State-Of-The-Art
polyurethanes. Whether your motivation is driven
by the EPAs current or impending regulations,
the need to gain a leading competitive edge in
your market, increased capacity, or more
importantly to strengthen your organizations
financial future by promoting higher standards
for quality, productivity, safety, health and
environmental. Together with TSE, your
commitment and our TSE-EcoSpray polyurethanes
the transition is possible. Please call if you
believe that polyurethanes can make a difference
in your organizations future.