Economics of Process Aid useEconomics of Process Aid use
Asia Tyre & Rubber ConferenceAsia Tyre & Rubber ConferenceDecember 2 – 3, 2011December 2 – 3, 2011
Hari Chandra
Quantum Polymer
Cleveland, Ohio
ContentsContentsGDP growth of fast growing economies
Rubber output and price trends
Options to ease pressure on NR demand
Ecoreen and Ecorized Tire Rubber (ETR)
Ecoreen use to reduce cost and NR consumption
Findings and Recommendation
GDP-US
02000400060008000
10000120001400016000
1950
1954
1958
1962
1966
1970
1974
1978
1982
1986
1990
1994
1998
2002
2006
2010
Year
$ B
illio
nUS GDP 1950 - 2010US GDP 1950 - 2010
GDP Growth China & IndiaGDP Growth China & India
Exchange: US$1 = 6.4 RMB
Indian Rupee Conversion rate US$1:INR 50
China Automobile production by yearYear Production (in million units)
1992 1.0
1999 1.2
2000 2.07
2001 2.33
2002 3.25
2003 4.44
2004 5.07
2005 5.71
2006 7.28
2007 8.88
2008 9.35
2009 13.79
2010 18.06
Indian automotive production
Year Car Production
1999 533,149
2000 517,957
2001 654,557
2002 703,948
2003 907,968
2004 1,178,354
2005 1,264,000
2006 1,473,000
2007 1,713,479
2008 1,846,051
2009 2,175,220
2010 2,814,584
World Auto OutputWorld Auto OutputYear Units % change
1999 56,258,892 6.20%
2000 58,374,162 3.80%
2001 56,304,925 -3.50%
2002 58,994,318 4.80%
2003 60,663,225 2.80%
2004 64,496,220 6.30%
2005 66,482,439 3.10%
2006 69,222,975 4.10%
2007 73,266,061 5.80%
2008 70,520,493 -3.70%
2009 61,791,868 -12.40%
2010 77,857,705 26.00%
China's Car output
0
5
10
15
201992
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Year
Cars
Mill
ions
Indian automotive output
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
Year
Num
ber
of C
ars
Global Auto Production
0
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Units
Yea
rWorld Auto OutputWorld Auto Output
Average Natural Rubber-SMR 20-Prices
Year USCent/KG
2000 64.3
2001 54.5
2002 75.9
2003 100.5
2004 122.5
2005 139.4
2006 195.8
2007 216.7
2008 254.4
2009 183.8
2010 333.6
2011 470.7
SMR 20 average Prices
0
100
200
300
400
500
200
0
200
1
200
2
200
3
200
4
200
5
200
6
200
7
200
8
200
9
201
0
201
1
Year
US
Ce
nts
pe
r K
G
MRB FOB NOON PRICES FOR MRB FOB NOON PRICES FOR SMR 20 (US Cents/Kg)SMR 20 (US Cents/Kg)January - October 2011January - October 2011
World Rubber Output in ( X 000) tons
Year NR SR Total
2000 6,762 870 17,632
2001 7,332 10,483 17,815
2002 7,326 10,877 18,203
2003 8,005 11,341 19,361
2004 8,774 11,961 20,707
2005 8,896 12,100 21,004
2006 9,706 12,653 22,444
2007 9,833 13,387 23,188
2008 10,042 12,743 22,779
2009 9,662 12,087 21,704
2010 10,291 14,002 24,293
World NR, SBR & Total Rubber output
0
5,000
10,000
15,000
20,000
25,000
30,000
Year
Outp
ut Tons X
1000
NR
SR
Total
Source: Malaysian Rubber Board
Growth of China & India Auto and Growth of China & India Auto and NR& SR sectors for 2001 - 2010NR& SR sectors for 2001 - 2010
Sector
Growth Averages
Average Annual Growth%
China auto output 19 %
India auto output 16%
Natural Rubber (NR) output 4 %
Synthetic Rubber (SR) output 2 %
NR plus SR output 3%
NR – SMR 20 price increase 19%
China & India combined auto 19%
Demand trend and price hikeDemand trend and price hike
China's Car output
0
5
10
15
20
19
92
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
Year
Ca
rs M
illio
ns
Indian automotive output
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
1999
2001
2003
2005
2007
2009
Year
Nu
mb
er
of
Ca
rs
SMR 20 average Prices
0
100
200
300
400
500
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Year
US
Cents
per
KG
World NR, SBR & Total output
0
5,000
10,000
15,000
20,000
25,000
30,000
Year
Ou
tpu
t T
on
s X
100
0
NR
SR
Total
Options to resolve scarcityOptions to resolve scarcity
Increase NR with plantingLimits: speed and growth-gestation / Land
Increase SR with investment in plantsLimits due to fossil fuel raw material scarcity
Design lighter weight tiresPossible
Recycled rubber Feasible
Recycled RubberRecycled Rubber
Abundant source: Used Tires
Used Tires in USUsed Tires in US
One tire per population per yearAt 350 Million there are 350 Million TireThe amount of Rubber compound
3.0 Million Tons 60% Polymer – mix of NR and SR 1.8
Million Tons
Current Used Tire DisposalCurrent Used Tire Disposal
Use Percent
Ground Rubber 26.2
Tire Derived Fuel 40.3
Used Tire 7.2
Civil Engineering 5.5
Reclaimed 2.5
Others 5.7
Land Fill 12.6
Current Used Tire DisposalCurrent Used Tire DisposalUse Percent & Rubber/Carbon
Tons
Ground Rubber 26.2 % 786,000 Tons
Tire Derived Fuel 40.3 % 1,209,120 Tons
Used Tire 7.2 %
Civil Engineering 5.5 %
Reclaimed 2.5 %
Others 5.7 %
Land Fill 12.6 %
Used Tire Disposal
Civil
Engineering
Used Tire
Tire Derived
Fuel
Ground Rubber
Land DisposalRecalimed Others
Devulcanization & Set backsDevulcanization & Set backs
Low green strengthPoor TackIncreased ViscosityInability to hold fillers
Possible solution:Use of Liquid (Depolymerized) NR
Depolymerized Natural Rubber DPRDepolymerized Natural Rubber DPR®® applicationsapplications
Rubber Process Aid – ML4 drops by 5- 20 units
Rubber Performance Improvement Rheology modifier for lubricants Asphalt additive Has ability to bind large volumes (10X)
of fillers
Impediments to use of DPRImpediments to use of DPR®®
Liquid and difficult to handleLimited supply sourceHigh cost:
When Natural Rubber was at $1.50 per LBDPR® was at $3.50 / LB
..
.
Ecoreen Process Aids DPR® Substitute
• Composed ofVirgin polymers Pre cross-linked rubber (vulcanized Rubber)*
• * Types: Tire Rubber (T), Butyl Rubber (B),EPDM (EP), NR (N) and others
Ecoreen T for Tire Ecoreen T for Tire CompoundsCompounds
Free Flowing Pellets Versus Liquid DPR® Function: Plasticizer to reduce mix
cycle time and increases filler holding capacity
Reactive: Cures with the rest of polymer matrix and non migrating
Ecoreen T -Tire Rubber DPEcoreen T -Tire Rubber DPApplicationsApplications
Rubber Process Aid – ML4 drops by 20 units.
Improves tack & Green Strength Rubber Performance Improvement Rheology modifier for lubricants Asphalt additive Thermoplastic Rubber base Has ability to bind large volumes of fillers
Ecorized Tire Rubber (ETR)Ecorized Tire Rubber (ETR)
Tire Rubber Powder (Tire Crumb) is “ecorized” to different levels for use in various applications by treating ground tire powder with Ecoreen T process aid
Tire Crumb after milling (Ecorized) with 10 PHR Ecoreen T & Curatives
“Devulcanized” Tire Crumb with Curatives, no Ecoreen
Clay Clay Versus Versus
Ecorized Tire Rubber (ETR) Ecorized Tire Rubber (ETR)
Comparison
SG of Clay and Tire Filled MixesSG of Clay and Tire Filled Mixes
Mix #Clay Level
Clay Mix SG
Clay MixWeight /Cu Ft.
ETR Level Tire Crumb Mix SG
1 100 1.28 80 LB 100 1.12
2 200 1.44 90 LB 200 1.12
3 300 1.57 98 LB 300 1.12
4 400 1.68 105 LB 400 1.12
5 500 1.75 109 LB 500 1.12
6 600 1.82 114 LB 600 1.12
7 700 1.89 118 LB 700 1.12
8 800 1.95 122 LB 800 1.12
9 900 2.00 125 LB 900 1.12
10 1000 2.04 127 LB 1000 1.12
Weight of ETR filled at all levels: SG 1.12, weight 70 LB / Cu Ft
1.00
1.20
1.40
1.60
1.80
2.00
2.20
100 200 300 400 500 600 700 800 900 1000
Loading PHR
Den
sity
SG of Ecoreen TC Vs ClaySG of Ecoreen TC Vs Clay
Clay
Ecoreen TR
Cost of weight Vs VolumeCost of weight Vs VolumeFillers: Clay and E. Tire CrumbFillers: Clay and E. Tire Crumb
Weight per LB, Volume per Cu FtWeight per LB, Volume per Cu Ft –– 66’’ X 4 X 4’’ X X ½”½” Mat Mat
Filler Level
Clay Filler
Cost $/LB
E.Tire Crumb
Cost / LB
Clay Filler$ per Cu Ft
E.Tire Crumb
$ per Cu.Ft
100 0.70 0.76 $ 55.94 $ 53.14
200 0.57 0.64 $ 51.24 $ 44.75
300 0.48 0.57 $ 47.05 $ 39.86
400 0.42 0.52 $ 44.05 $ 36.36
500 0.38 0.49 $ 41.52 $ 34.26
600 0.34 0.46 $ 38.63 $ 32.16
700 0.31 0.44 $ 36.58 $ 30.77
800 0.29 0.43 $ 35.30 $ 30.07
900 0.27 0.41 $ 33.71 $ 28.67
1000 0.26 0.40 $ 33.11 $ 27.97
0.20
0.30
0.40
0.50
0.60
0.70
0.80
Loading PHR
Co
st /
LB
Cost per LB Ecoreen TC Vs ClayCost per LB Ecoreen TC Vs Clay
Ecoreen TR
Clay
Cost by Volume ECoreen TC Cost by Volume ECoreen TC Vs Clay per Cu Ft (6Vs Clay per Cu Ft (6’’ X 4 X 4’’ X X ½”)½”)
$20.00$25.00$30.00$35.00$40.00$45.00$50.00$55.00$60.00
Loading PHR
Co
st $
/ C
u F
t
Clay
Ecoreen TR
Filler PHR Mix with Clay Mix with ETR
0 63% 63%
100 38% 60%
200 28% 58%
300 22% 58%
400 18% 57%
500 15% 57%
600 13% 57%
700 12% 56%
800 10% 56%
900 9% 56%
1000 9% 56%
RHC Content in Clay and ETR RHC Content in Clay and ETR Filled N 110 Black MixFilled N 110 Black Mix
RHC in Mix 9438 with Clay & ETR
0%10%20%30%40%50%60%70%
Filler Level PHR
% R
HC
in M
ix
Clay
ETR
RHC: Rubber Hydro Carbon
Advantages of ETR based MixAdvantages of ETR based MixLighter weight – constant SG at 1.12 at all levels
Higher recycled content
Releases pressure on demand for NR and SR
Able to reduce costs substantially while meeting quality standard
Ref: 9340
Material $ per LB Parts % $/ LB Mix
Rubber $ 2.00 100 53% $ 1.07
N 330 Black $ 0.45 60 32% $ 0.14
Zinc Oxide $ 0.93 5 3% $ 0.02
Stearic Acid $ 0.63 2 1% $ 0.01
Wax $ 0.45 2.5 1% $ 0.01
Antioxidant TQ $ 1.85 1 1% $ 0.01
6PPD $ 2.30 1.5 1% $ 0.02
N. Oil $ 0.53 15 8% $ 0.04
Ecoreen TR $ 0.43 0 0% $ -
Total 187 1 $ 1.32
Tire Tread Mix – No Ecoreen TC
Ref: 9340
Material $ per LB Parts % $/ LB Mix
Rubber $ 2.00 100 26% $ 0.52
N 330 Black $ 0.45 60 16% $ 0.07
Zinc Oxide $ 0.93 5 1% $ 0.01
Stearic Acid $ 0.63 2 1% $ 0.00
Wax $ 0.45 2.5 1% $ 0.00
Antioxidant TQ $ 1.85 1 0% $ 0.00
6PPD $ 2.30 1.5 0% $ 0.01
N. Oil $ 0.53 15 4% $ 0.02
Ecoreen TR $ 0.43 200 52% $ 0.22
Total 387 1 $ 0.86
Tire Tread Mix with 200 PHR Ecoreen TC
Ref: 9338 / N 110 9339 / N 220 9340 / N 330
Material$ / LBMaterial Parts %
$/ LB Mix Parts %
$/ LB Mix Parts %
$/ LB Mix
Polymer 2.00 100 63 1.25 100 57 1.15 100 53 $ 1.07
Black and Oil 0.68 48 30 0.20 62 36 0.19 75 40 $ 0.19
Activators 0.84 7 4 0.04 7 4 0.03 7 4 $ 0.03
Anti Degradants 1.29 5 3 0.04 5 3 0.04 5 3 $ 0.03
ETR 0 0 - 0 0 - 0 0 $ -
Total 160 100 1.53 174 100 1.42 187 $ 1.32
Premium Tread Mixes
Ecorized Tire Rubber effect on Cost
$0.50
$0.60
$0.70
$0.80
$0.90
$1.00
$1.10
$1.20
$1.30
$1.40
$1.50
$1.60
Ecorized Tire Rubber Loading
Co
st $
per
LB
9338
9339
9340
Ecorized Tire Rubber costs $0.43 per LB
Ecorized Tire Rubber on cost
$0.80
$0.90$1.00
$1.10
$1.20
$1.30$1.40
$1.50
$1.60
Ecprized Tire Rubber PHR
Co
st p
er
LB
9338
9339
9340
ETR at loadings from 0 to 100
ETR cost: $0.43 per LB
Ecoreen 2.0 costs $0.65 per LB
Ecoreen 2.0 level on Cost
$0.70
$0.80
$0.90
$1.00
$1.10
$1.20
$1.30
$1.40
$1.50
$1.60
0 200 400 600 800 1000
Ecoreen PHR
Co
st $
per
LB
9338
9339
9340
Three ProductsThree Products
1. Ecoreen T Process Aid($0.65)Not made into product by itself
2. Ecoreen Master BatchFor blending and making products by itself ($0.80)
3. Ecorized Tire Rubber (ETR)Polymer filler to reduce cost and improve process / product($0.43)
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
TreadMBEcoreen MBEcoreen TETR
Control 9346
9345 9343 9344 9342Ecoreen 50% Ecoreen 25% Ecoreen TR 500 PHR Ecoreen TR 100 PHR
$1.20 /LB $1.40/LB $1.14 / LB
$1.60 / LB
$0.95 / LB
Examples of poor flow in spider test
FindingsFindings
Ecorized Tire Rubber decreases cost of product through loading high levels in tire mixes and molded products while improving processing characteristics and final product performance
RecommendationRecommendation
Ecorized Tire Rubber / Crumb can be used at high loadings (100 to 500 PHR) in tire tread and retread formulations.
Quantum will provide anyone masterbatch samples upon request with specification
`̀
Mix 2 Masterbatch
Final compound with cure
Mix 2 Tire Mix 2 Tire
Mix 1 TireMix 1 Tire
Mix 223 TireMix 223 Tire
Mix 2 Tire
Thanks to Asia Tyre Rubber Thanks to Asia Tyre Rubber Conference 2011 Organizers for Conference 2011 Organizers for
this opportunitythis opportunity