환영
Lotte Chemical UK,
PET & Sustainable Packaging
Mark Kenrick
CEO
April 2012
Agenda
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Introduction to Lotte
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Wilton & LCUK
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The Polyester and PET Market
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PET & Sustainability
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Summary
Lotte Group Structure
Mr. Kyukho Shin
Founder & Chairman
Established: 1948
Established: 1967
No. of Affiliates: 44
No. of Affiliates: 60
Main Affiliates:
Main Affiliates:
LOTTE Confectionary
LOTTE Confectionary,
LOTTE Trading
LOTTE Shopping
LOTTE Ice Cream, etc
LOTTE Hotel
LOTTE Petrochemicals
– Honam & KP
Lotte History & Timeline
2018
(Target
$ 200bn
80
milestone)
70
2011
$70bn
60
50
1990s
40
(Expansion)
1980s
30
(Growth)
1970s
(diversification)
1998
$8bn
20
1960s
(Beginning)
10
’67
2003
$20bn
2005
$30bn
1984
US$1bn
’85
’90
’95
’00
’05
∼
∼
0
2009
$48b
n
2008
$43bn
2000s
(Globalization)
’10 ’18
Lotte Group International
Lotte Group carries out business in 24 countries including
Vietnam, Russia, India, Indonesia, China, etc with more than 120 corporations
LCUK
Guylian
Lotte Shopping Rus
Lotte Confectionery Rus
Lotte(China)
Investment, etc (25 corp)
United NCRI-Lotte
Construction Corp.
Pakistan PTA
Limited
Lotte India
Lotte Food India
Lotte Shopping
India Pvt.,Ltd
Lotte U.S.A. Lotte International America
Lotte Liquor Japan
Lotte BG America
Lotte Vietnam
Vietnam Lotteria
Lotte Vietnam Shopping
BIBICA Corp.
P.T. Lotte Indonesia
PT Makro Indonesia
Thai Lotte Co.,Ltd.
Lotte Petrochemical Division
LSR
Cracker
Ethylene
PE
EG
Propylene
PP
Mixed C4
BD
MMA
BZ
SM
PC
PX
PTA
MeX
PIA
OX
PA
LPG
2%
Crude
Oil
Gasoli
-ne
8%
Naptha
Naptha
Splitter
14%
Refinery
Kero
-sene
11%
Diesel
29%
B-C
HSR
Reformer
MX
30%
Etc
6%
BZ
SM
PC
PET
PMMA
The Wilton Site
&
Lotte Chemical UK Ltd
History Of Wilton Site
40s
50s
60s
70s
80s
Established 1946
90s
•
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DuPont
(Nylon &
Polyester)
Huntsman
Union
Carbide
Enron
2000s
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Invista
DuPontSA /
Advansa / La Seda
(Artenius)
Sabic
Huntsman
Dow
Croda
pX
SCUK
2012
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•
•
•
•
•
•
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Sabic (KSA)
LCUK (Korea)
Sembcorp (Singapore)
Ensus (UK)
Huntsman (USA)
Yara (Norway)
BIFFA (UK)
GDF Suez (France)
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2000 acres / 800 hectares = 1300 football pitches with 12.5 km perimeter fence
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35,000 employees on site in 1960s, approx 4,000 in 2010
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£1.25Bn investment 2000 – 2010
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1st Multi Company Site In UK to be awarded British Safety Council Sword Of Honour
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Evolution of Wilton illustrates evolution of Global Chemical Industry
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Globally owned companies
Evolution of LCUK Ltd
SA
Jan 00
Oct 06
Nov 04
Renamed Feb ‘07
Feb 10
Resin &
Inters
Jan 98
DuPont
Polyester
Technologies
Sept 03
May 04
What Does LCUK Do?
CRUDE OIL
AROMATICS
PARAXYLENE
PTA
LCUK
FIBRE & PACKAGING
Staple
Filament
Woven
Bottles
Containers
Sheet
Film
PET
LCUK Production Plants – T8 & M5
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T8 PTA plant
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M5 PET Plant
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Commissioned in 1981 , uprated in 1989 & 2004
Original Capacity 250 ktpa
Current capacity 500ktpa
Based on BP Amoco/ICI Technology
Effectively 2 Plants plus significant environmental
protection processes
Built 1996 & uprated in 2001
Original design rate = 240tpd
Current rate = 450tpd / 150ktpa
Based on DuPont / ICI / Buhler technology
LC1 PET Plant
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New plant announced 2011
200ktpa
On line Q3 2013
Location Of New LCUK 200 kt pa PET Plant
LCUK & PET
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PET offers a unique combination of gloss, transparency, durability and impact resistance (safe!)
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Melinar ® LCUK PET is processed into bottles, jars & trays for soft drinks, water, other foodstuffs, cosmetics, medicines
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In terms of sustainability PET is packaging material of choice
– Fully recyclable within domestic recycle systems
– Lightweight enabling much lighter packaging weights
– Full Life Cycle Analysis shows excellent comparison with other materials
– Significant contribution to enabling UK to deliver Courtald 2 commitment
– LCUK Melinar ® Laser + resin offers reduced energy consumption in use without compromising optical clarity
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Fully compliant with European and USA Food Contact and Pharmacopia legislation
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Extensively used within the Northern European region and fully endorsed by major brand owners
– Around 50% of major UK brand bottled drinks are in LCUK PET
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Please remember to recycle your PET bottles!
Polyester Fibre & Bottle Resin Markets
Global Polyester Production
(Fibres + Bottle Resin + Film)
Global
China
50% Of Global Polyester Polymer Capacity
65% Of Global Polyester Fibre Capacity
Growth at 3-4x ROW
China
Interconnected & Complex Influences On The
EU PET Market
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Asia & In Particular China
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Market Forces (incl. raw materials)
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Relative (un)attractiveness of imported raw materials and PET
Impact on raw materials prices
Raw Materials
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Seasonality
Inherent Supply – Demand
‘Sustainable packaging’ impact
€:$ Exchange rates
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Dominance of China in global polyester dynamics
Impact of Chinese monetary policies & subsequent growth
Sheer scale and impact of small % variance in growth forecasts
Paraxylene
MEG
‘One Off’ or Random Events
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Cotton harvest
Natural ‘disasters’
Eurozone or other financial crashes => GDP
PET & Sustainability
The Future Of PET?
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Already implied that PET is used mainly in food packaging (bottles / trays) and has
been marketed extensively as the ‘greenest (plastic)’ packaging material
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Major brand owners have or are developing sustainable packaging credentials
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So new PET product developments are already, and will continue to focus on the
sustainability agenda:
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Coca Cola Plant Bottle => Heinz & Danone
Pepsi BioPet Bottle 2012
Nestle, Danone & various supermarkets
Next Generation Fast Reheat Resin (Downstream energy reduction)
Post Consumer recycle suitability and options
Sustainable raw materials namely Bio sourced
Alternative polymers will start to be meaningful and displace PET
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G2 PLA
Polyethylene furans
Polyglycolic acids
Post Consumer Recycle Options
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LCUK already endorses the PET sustainability theme via
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To-date the combination of cost, raw material quality, processing issues, convertor
push back etc has resulted in little real PCR penetration into bottle applications
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3000 ktes of PET produced in EU in 2010
1400 ktes of PET collected
220 ktes reprocessed back into food contact bottles (B2B)
If PCR is to establish within B2B applications it will require a dedicated joint
development programme between resin producer and brand owner and will probably
remain small scale
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Industry leading Reheat grade (speed - optical clarity balance) & development of its
replacement
The inclusion of an element of post consumer recycle material and already markets a VPET:R-PET blend
Many claimed 100% Recycle PET bottles now disappeared
Next stage is inclusion of R-PET flake into the production process to replace raw
materials
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Requires significant further investment
Bio Raw Materials
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Bio sourced raw materials are now high profile endorsements by Coca Cola,
Nestle, Danone etc and it is envisaged that additional Brand Owners will declare
a similar intent within 2012
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Current Bio-PET or BPET is focussed on bio-MEG from bio–ethanol
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LCUK involved in Bio-MEG / Bio-PET development
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Advanced discussions to secure own sourced Bio-MEG for short & medium term
KP producing Bio-PET in Korea mainly for use in cars in Asia
LCUK keen to explore possibilities to do same
Bio-PTA is a more distant proposition
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Brasil -> India -> EU = sustainable?
Brand owners seem to have major issues with food conflict with other bio-ethanols?
Virent claim BioFormPX(TM) from biomass / cane / corn
100,000 gallons pa scale at present, commercial scale by 2015
Goal has to be bio raw materials from waste and as far a ‘closed loop UK’ as is
possible
Summary
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LCUK grew from the ashes of the assets of Artenius UK Ltd in administration in Q1
2010.
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It is owned by a chemical subsidiary of one of Korea’s largest conglomerates with plans
to grow to $200Bn turnover by 2018
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IN 2011 LCUK sanctioned investment for an additional 200 ktpa PET resin plant to be
built at Wilton – on line late 2013
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PET is currently the packaging material of choice in many applications due to a
combination of appearance, ease of use, lightweight, recyclability, LCA considerations
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This position could come under pressure from new bio-polymers if the sustainability
agenda is not grasped – but 20M tes of PET globally will take some replacing!
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Sustainably sourced raw materials are vital to that process with ‘food crop’ Bio- sourced
raws a first step
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Very interested in ‘closed loop UK’ solutions where possible and practical