Economics of Process Aid use
Asia Tyre & Rubber Conference
December 2 – 3, 2011
Hari Chandra
Quantum Polymer
Cleveland, Ohio
Contents

GDP 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
Year
2010
2006
2002
1998
1994
1990
1986
1982
1978
1974
1970
1966
1962
1958
1954
1950
$ Billion
US GDP 1950 - 2010
GDP-US
16000
14000
12000
10000
8000
6000
4000
2000
0
GDP Growth China & India
Exchange: US$1 = 6.4 RMB
Indian Rupee Conversion rate US$1:INR 50
China Automobile production by year
Year
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 Output
Year
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%
Year
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1992
Cars Millions
China's Car output
20
15
10
5
0
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
Year
20
09
20
07
20
05
20
03
20
01
500,000
0
19
99
Number of Cars
Indian automotive output
World Auto Output
Global Auto Production
100,000,000
Year
80,000,000
60,000,000
40,000,000
20,000,000
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Units
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
Year
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
US Cents per KG
SMR 20 average Prices
500
400
300
200
100
0
MRB FOB NOON PRICES FOR
SMR 20 (US Cents/Kg)
January - 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
30,000
25,000
20,000
NR
15,000
10,000
SR
Total
Year
Source: Malaysian Rubber Board
20
10
20
08
20
06
20
04
20
02
5,000
0
20
00
Output Tons X 1000
World NR, SBR & Total Rubber output
Growth of China & India Auto and
NR& SR sectors for 2001 - 2010
Sector
Growth Averages
China auto output
Average Annual
Growth%
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%
19 %
Demand trend and price hike
China's Car output
Indian automotive output
Year
20
09
19
99
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1992
0
20
07
5
20
05
10
20
03
15
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
20
01
Number of Cars
Cars Millions
20
Year
World NR, SBR & Total output
25,000
20,000
NR
15,000
10,000
SR
Total
5,000
US Cents per KG
30,000
500
400
300
200
100
Year
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
20
10
20
08
20
04
20
02
20
06
Year
2000
0
0
20
00
Output Tons X 1000
SMR 20 average Prices
Options to resolve scarcity

Increase NR with planting
Limits: speed and growth-gestation / Land

Increase SR with investment in plants
Limits due to fossil fuel raw material scarcity

Design lighter weight tires
Possible

Recycled rubber
Feasible
Recycled Rubber
Abundant source: Used Tires
Used Tires in US

One tire per population per year
 At 350 Million there are 350 Million Tire
 The amount of Rubber compound
3.0 Million Tons
 60% Polymer – mix of NR and SR 1.8
Million Tons
Current Used Tire Disposal
Use
Ground Rubber
Tire Derived Fuel
Used Tire
Civil Engineering
Reclaimed
Others
Land Fill
Percent
26.2
40.3
7.2
5.5
2.5
5.7
12.6
Current Used Tire Disposal
Use
Ground Rubber
Percent & Rubber/Carbon
Tons
26.2 % 786,000 Tons
Tire Derived Fuel
40.3 % 1,209,120 Tons
Used Tire
Civil Engineering
7.2 %
5.5 %
Reclaimed
2.5 %
Others
5.7 %
Land Fill
12.6 %
Used Tire Disposal
Civil
Engineering
Recalim ed
Others
Land Disposal
Used Tire
Ground Rubber
Tire Derived
Fuel
Devulcanization & Set backs

Low green strength
 Poor Tack
 Increased Viscosity
 Inability to hold fillers

Possible solution:
Use of Liquid (Depolymerized) NR
Depolymerized Natural Rubber DPR®
applications
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 DPR®

Liquid and difficult to handle
 Limited supply source
 High cost:
When Natural Rubber was at $1.50 per LB
DPR® was at $3.50 / LB
Ecoreen Process Aids
DPR® Substitute
.
• Composed of
Virgin
.
polymers
Pre cross-linked rubber (vulcanized Rubber)*
• * Types: Tire Rubber (T), Butyl Rubber (B),
EPDM (EP), NR (N) and others
Ecoreen T for Tire
Compounds

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 DP
Applications







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)
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
Versus
Ecorized Tire Rubber (ETR)
Comparison
SG of Clay and Tire Filled Mixes
Mix #
Clay
Level
Clay Mix
SG
Clay Mix
Weight /
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
SG of Ecoreen TC Vs Clay
2.20
Density
2.00
1.80
Clay
1.60
1.40
1.20
Ecoreen TR
1.00
100 200 300 400 500 600 700 800 900 1000
Loading PHR
Cost of weight Vs Volume
Fillers: Clay and E. Tire Crumb
Weight per LB, Volume per Cu Ft – 6’ X 4’ X ½” Mat
Filler Level
Clay Filler
Cost $/LB
E.Tire Crumb Clay Filler
$ per Cu Ft
Cost / LB
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
Cost per LB Ecoreen TC Vs Clay
0.80
0.60
Ecoreen TR
0.50
0.40
Clay
0.30
Loading PHR
10
00
90
0
80
0
70
0
60
0
50
0
40
0
30
0
20
0
0.20
10
0
Cost / LB
0.70
$60.00
$55.00
$50.00
$45.00
$40.00
$35.00
$30.00
$25.00
$20.00
Clay
Loading PHR
10
00
90
0
80
0
70
0
60
0
50
0
40
0
30
0
Ecoreen TR
20
0
10
0
Cost $ / Cu Ft
Cost by Volume ECoreen TC
Vs Clay per Cu Ft (6’ X 4’ X ½”)
RHC Content in Clay and ETR
Filled N 110 Black Mix
Filler PHR
0
100
Mix with Clay
63%
38%
Mix with ETR
63%
60%
200
300
400
500
28%
22%
18%
15%
58%
58%
57%
57%
600
700
13%
12%
57%
56%
800
10%
56%
900
1000
9%
9%
56%
56%
RHC in Mix 9438 with Clay & ETR
70%
60%
50%
40%
30%
20%
10%
0%
Clay
Filler Level PHR
90
0
10
00
80
0
70
0
60
0
50
0
40
0
30
0
20
0
10
0
ETR
0
% RHC in Mix
RHC: Rubber Hydro Carbon
Advantages of ETR based Mix

Lighter 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
Tire Tread Mix – No Ecoreen TC
Ref:
9340
Material
$ per LB
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% $
-
187
1 $
Total
Parts
%
$/ LB Mix
1.32
Tire Tread Mix with 200 PHR Ecoreen TC
Ref:
9340
Material
$ per LB
Rubber
N 330 Black
$
$
2.00
0.45
100
60
26% $
16% $
0.52
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
387
1 $
0.86
Total
Parts
%
$/ LB Mix
Premium Tread Mixes
Ref:
9338 / N 110
9339 / N 220
$/ LB
Mix
$ / LB
%
Material
Material
Parts
Polymer
2.00
100
63
Black and
Oil
0.68
48
30
Activators
0.84
7
Parts
9340 / N 330
$/ LB
Mix
%
Parts
%
$/ LB
Mix
100
57
1.15
100
53
$
1.07
0.20
62
36
0.19
75
40
$
0.19
4
0.04
7
4
0.03
7
4
$
0.03
5
3
0.04
5
3
5
3
$
0.03
ETR
0
0
-
0
0
-
0
0
$
Total
160
100
100 1.42
187
Anti
Degradants
1.29
1.25
1.53
174
0.04
$
1.32
Ecorized Tire Rubber effect on Cost
$1.60
$1.50
$1.30
$1.20
9338
$1.10
9339
$1.00
9340
$0.90
$0.80
$0.70
$0.60
90
0
10
00
80
0
70
0
60
0
50
0
40
0
30
0
20
0
10
0
$0.50
0
Cost $ per LB
$1.40
Ecorized Tire Rubber Loading
ETR at loadings from 0 to 100
$1.60
$1.50
$1.40
$1.30
$1.20
$1.10
$1.00
$0.90
$0.80
9338
9339
0
10
80
60
40
20
9340
0
Cost per LB
Ecorized Tire Rubber on cost
Ecprized Tire Rubber PHR
ETR cost: $0.43 per LB
Ecoreen 2.0 level on Cost
$1.60
Cost $ per LB
$1.50
$1.40
$1.30
9338
$1.20
9339
$1.10
9340
$1.00
$0.90
$0.80
$0.70
0
200
400
600
Ecoreen PHR
Ecoreen 2.0 costs $0.65 per LB
800
1000
Three Products
1.
Ecoreen T
Process Aid
($0.65)
1.6
Not made into product by itself
1.2
1.4
2.
Ecoreen Master Batch
3.
For blending and making products
0.8
by itself ($0.80)
0.6
Ecorized Tire Rubber (ETR)
Polymer filler to reduce cost and 0.4
improve process / product
0.2
($0.43)
1
0
Tread
MB
Ecoree
n MB
Ecoree
nT
ETR
9345
Ecoreen 50%
$1.20 /LB
9343
Ecoreen 25%
9344
Ecoreen TR 500 PHR
$1.40/LB
Control 9346
$0.95 / LB
$1.60 / LB
9342
Ecoreen TR 100 PHR
$1.14 / LB
Examples of poor flow in spider test
Findings
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
Recommendation
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 1 Tire
Mix 223 Tire
Mix 2 Tire
Thanks to Asia Tyre Rubber
Conference 2011 Organizers for
this opportunity