i 2 Innovation at BYK Our Vision

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1 Our Vision

2 Seek Opportunities Achieve Results: that s the innovative culture of BYK USA. Page 22 China is a market with strategic priority for us and we maintain several branches there. Page 18 Dr. Michael Berkei on the advantages of our ready-touse CNT dispersions. Page 60 Inkjet printing is indispensible in advertising. Our BYKJET additives improve color quality. Page 44 In our customer seminars we communicate important practical knowledge for everyday situations. Page 12 Adhesives and sealants are an attractive market for BYK, says Jan Lenz. Page 46

3 WHAT IS INNOVATIVE? Our vision of innovation 8 Conversations with customers inspire: voices from Asia WHO ARE THE INNOVATORS? The perspective makes the difference 18 Staying in tune with the market 22 Innovation culture made in the USA 24 Innovations make life easier: voices from the USA 28 Good service satisfied customers HOW ARE WE INNOVATIVE? WHAT IS INNOVATIVE? 32 Well-equipped for the future 38 Brilliant and universally applicable 40 Innovative polymer emulsifiers on the basis of T.A.P.E. technology 42 Successful concept now for aqueous systems 43 Dispersing agents for organic pigments and carbon blacks 44 BYKJET additives for brilliant advertising 46 Special commitment Interview with Jan Lenz 50 With both feet firmly planted in the clouds 52 Coupling agent success story We listen to what our customers around the globe are saying and that s why ideas for new solutions flourish. WHY ARE WE INNOVATIVE? Tools for new surfaces Interview with Dr. Birthe Borup 60 Tiny tubes, intelligently connected Interview with Dr. Michael Berkei 64 A new class of surface additives made with macromer technology 70 Additives for eco-friendly formulations 75 Imprint 5

4 Our vision of innovation 2 i2 We provide our customers with solutions and services that offer them a competitive edge of their own. The very heart of our innovation process is our workforce of dedicated and motivated employees throughout the world. They are focused on developing the best possible solutions for our customers. The starting point for new ideas is our basic understanding of close cooperation. We listen to our customers and help them with individual, specific questions. This is made possible in large measure through the technical equipment and resources of our laboratories all over the world which enable us to replicate our customers production processes. Recognizing new trends and challenges early on and supplying answers that genuinely benefit our customers are fundamental to our concept of innovation. 6 2 i 2 We not only focus on continuously optimizing our products, but we are also always working to develop new markets for those products. We often find that the functional mechanisms of our products can be transferred to applications outside of the original scope. Such transfer processes allow us to acquire new expertise, which in turn enables us to develop other new products for those markets. Being innovative also means identifying potentials. This is particularly true when it comes to the use of key pioneering technologies. We do not consider advanced technology as an end in itself, but rather a means of generating added value. With this philosophy in mind we are developing specifically targeted nanotechnology and biotechnology applications. Both fields offer highly promising potentials for innovative additives, thereby making it possible to create new products that will provide our customers with even greater advantages. 7

5 Conversations with customers inspire: voices from Asia Apart from medical progress, for asthma patients, for example, and general technological development, I think there s one innovation that really stands out: Thanks to the PC, we no longer have to write things by hand! That s what I call progress. With regard to future innovations, there are plenty of things I would like to see: A society in which everyone can be healthy and happy, in which everyone has enough to eat, and in which conflict is reduced to an absolute minimum. Culture or religion should not create barriers. Akihiro Wakahara Technical Manager, Additives Tokyo Shinji Hino Assistant Lab Manager Technical Service Lab Hyogo In my opinion, there are two paths of innovation which have recently had a strong impact on our lives. The first is the internet and all of the opportunities it offers, such as YouTube and shopping; and the other is the medical progress, which has extended people s life expectancy. That s one of the reasons why I think it would be a good thing if we would focus more of our innovations more closely on addressing the needs of an ageing society in the future. From my point of view, a care robot would be useful, for example. Generally speaking, for instance, I would like to have sources of alternative energy based on methane hydrate. Innovations in agriculture are also important in order to ensure economic independence. My most innovative moments are when I am outside in natural surroundings on a hike along a river, for instance, or bathing in a hot spring. Being in the company of others friends or customers often has a very inspiring effect on me as well. Alec Li Innovations these are the truly major advancements in technology. In the Technical Manager recent past, telecommunications and computer technology have brought us Shanghai revolutionary changes. For example, they altered classical production methods affecting people s lifestyles just as much as their work efficiency. Moreover, new markets and niche industries have emerged. I believe that these technologies will continue to affect us in new ways. Personally, I get my best ideas when I m relaxed while jogging, just before falling asleep, or when I m together with friends. Sometimes customer meetings are also extremely inspiring and great things occur to me then. For the future, I would like us to have more waterborne technologies. Water can be emulsified by means of additives and then further processed. Water could also be used as an energy source for cars or other vehicles. People will be glad to have 100% waterborne products and technologies. Some day solvent-borne products will disappear entirely. Major events, whether in the environment or in society, often trigger the innovation process. They put us in a reflective mood and that can give rise to new ideas. Innovation is a process that has to be a fundamental part of everyday life throughout the company from the very top right down to each and every team member. This requires openness and a willingness to accept risk. A positive attitude, the ability to address new problems, competition, and broad knowledge all promote innovative capacity. To me, innovation means more than just new products. It s all about creatively driving business success as a whole. In order to do that, we have to meet the customers demands and create solutions that they will accept. You Yu Fe Head of Industrial Applications Business Line Nanjing Keisuke Sakuragi Lab Manager Technical Service Lab Hyogo High-speed trains and telecommunications have altered our lives dramatically. Today our entire IT is based on telecommunication networks. For the future, I would like to see a worldwide recycling society in order to make the most efficient use of resources. A clean, safe, and effective energy system would also be very important. My best ideas occur to me either when I m around people or when I m dreaming and also sometimes when I have to wait for a plane or a bus. 8 9

6 Innovation is a process that is initiated by corporate management and is carried out through all teams right down to the individual employees. But it s also an attitude that takes the form of openness and the willingness to take risks; that means saying yes more often than no. As a company, you have to link the outside in and the inside out perspectives with one another because the market-oriented and resource-oriented views are interconnected. It s important to recognize your own strengths and weaknesses while understanding customers, competitors, and the environment at the same time. He Jidong Director of Sales and Marketing, Paint Additives Shanghai Innovation is about more than just products: It also includes processes, services, and the way a company organizes itself. I would really like to see innovations in which product developments are accompanied by services, customer demands, and operational advancements. WHO ARE THE INNOVATORS? Pan Yong Product Group Manager / Laboratory Department Head Shanghai Innovation it s customer-focused. This has always been the way we work and think at BYK. Customer focus is the basis for our success and for our market leadership. Customer focus is extremely important in Chinese markets today. We must on the one hand differentiate between the multinational corporations who are active here, and on the other hand, the local, purely Chinese companies. The latter are becoming more and more important for BYK because they work with their own formulations, raw materials, and processes. Together we can achieve more. That is why teamwork often extends between the continents. Impressive solutions are born in the process. Chinese customers also differ significantly from one another in other respects. There are the companies that want to deliver good quality and then there are companies who pay very close attention to price-performance ratio without necessarily making excellent quality their top priority. Many of these companies too including a number of multinational corporations are now following the trend towards adapting their formulations to market conditions in order to keep production costs low. BYK already has experience with tailor-made products for selected key customers in the past. These customers received customized innovations to meet their very specific needs. This approach to tailor-made LP products has an extraordinarily bright future in China and that s why we should continue to pursue it. The way I see it, customer focus includes more than just providing the right products. Our processes, and above all a well-qualified, dedicated and motivated workforce really help drive innovation at BYK

7 The perspective makes the difference Our customer seminars communicate important practical knowledge about additives

8 Sonja Wydra (left) does behind-the-scenes planning. Kirsten Siebenmark (right) is an on-site customer consultant. Our customers buy more than just products. Along with our additives, they also acquire knowledge at the same time knowledge comprising the savoir faire that our experts have gained over the course of decades of experience with users. We are glad to pass that knowledge along The platform established for this purpose is our customer seminar program that we have been running for many years now. Many of our longstanding customers appreciate this opportunity because it offers outstanding training and continuing education for their employees. The recipe for success for our seminars is both simple and persuasive: The perspective makes the difference. We want to pass along all of the information that we think is worth knowing, but that s not what determines the selection of topics and the organization of the sessions. Instead, what really matters is what our customers think: What questions and issues do they encounter in their everyday work when they are formulating their products and systems and working with additives? And in that context, what very concrete possibilities do BYK s additives open up for them? Recommended ways to work with our products Our instructors are ready to provide valuable information and advice. This has already proven effective in practical applications. They explain which factors are important for the selection of a specific additive, how our products should be added, and how best to incorporate them in the respective formulation. They also describe which methods and equipment can be used to test the results equipment from BYK-Gardner, for example. Many of our suggestions are based on specific customer enquiries from the past. Among those cases, we found that certain problems can be resolved without much trouble. A minor change in the formulation or in the equipment setup can improve the end product considerably. 15

9 Holger Wach welcomes our customers at the seminar. Presentations and practice-related demonstrations elucidate the way our additives function. The language of the seminar depends on the group of participants. If the group is made up of people from different countries, our employees lecture exclusively in English. We also offer seminars in German for our customers from Germany. For customers from China, Japan and Korea, we interpret the contents in the appropriate language simultaneously. The different multi-day programs cover an extremely broad range of subjects. Some give an overview of major product groups. These include wetting and dispersing additives, rheology or surface additives, defoamers, adhesion promoters, UV absorbers and nano additives, for example. Other seminars are dedicated to specific application areas. Seminars in this category include ones on our additives for the PVC industry, for example, or for paper coatings. Practical demonstrations illustrate functional principles Regardless of the specific topics they examine, our seminars all feature practical demonstrations which make it possible to actually experience how our solutions function. Our instructors generally have an application engineering background and have extensive experience in the industrial applications. Depending on the topic, they give live presentations, simulate laboratory situations, or show videos. BYK has compiled an extensive database just for these seminars, with video presentations which illustrate the effect of our additives. The personal exchange with our experts plays a key role in these sessions. That s why the end-use managers of the respective industrial segments are always present. Our guests also have the opportunity to exchange information and ideas with employees from Research & Development, Sales & Marketing, and with the product group managers. To promote that exchange, the seminar days close with an informal meet the expert wrap-up session. As a general rule, we invite our customers to our headquarters in Wesel, where they also have the opportunity to tour our laboratories, production facilities and logistics center. This gives our customers a complete and completely transparent-view of our company and of the way we work. Guarantee of success: the seminar team For many of our customers employees, their visit to Wesel marks their first trip to Germany so we make every effort to schedule seminars during seasons of the year when the landscape and culture of our region are especially attractive. Asparagus season is very popular because it gives our guests the chance to experience unforgettable culinary delights, agree Sonja Wydra and Kirsten Siebenmark and they have good reason to know. Ultimately it is our seminar team that guarantees the success of these events. In close cooperation with the heads of the business units and with the sales managers, the team handles all planning and preparation and then takes care of all the details on site for a smooth and successful participant experience. This includes compiling the information materials which the guests can use to get a clearer understanding of the course content. The team also compiles the presentation materials and training documentation for the participants on an individual basis. In addition, our seminar team is responsible for registrations, hotel bookings, room assignments, and bus transfers during the seminar days, along with the organization of the entertainment program. Upon completion of the sessions, the team members make sure that every participant receives a certificate that also serves as confirmation of the successfully completed continuing education program. We invite participants from all over the world to our seminars. We also customize the processes and formats of the sessions to suit the specific group of customers involved. Some of our guests have a keen interest in more than just practical knowledge. They also want to learn about the basic scientific principles pertaining to the additives and their functional mechanisms. The corresponding presentations form an integral part of the seminar and are also included in the handouts that all seminar participants receive at the conclusion of the session. Along with the seminars in Wesel, we also offer special events at our customer s facilities in which we concentrate exclusively on the markets in their specific area. These events also give our customers the opportunity to follow the session in their own language

10 Staying in tune with the market Members of the BYK sales organization are the first to learn what customers want in the future. Innovations are only a means to an end and make no sense unless they provide a benefit to the market. But what direction are developments in the market taking? What will our customers need in the future? The people who always stay in tune with the market are the ones who know the answers to these questions: our sales staff. The sales organization is the interface between the market and the company. Field representatives are the relationship managers between the customers and BYK. They are the first to know about new trends and customer demands and keep the company informed about these developments on a continuous basis. This is also how we will maintain our consistent customer focus in the future. At BYK we believe that maintaining a close dialog with our sales representatives, agents and distributors is extremely important. In addition to the exchange of information via phone contact, and our Customer Relationship Management system, most of our sales representatives from throughout Europe and overseas also travel to Wesel several times per year for meetings and training courses. Regional contacts all over the world No matter where BYK customers are located, there are local BYK experts who are highly qualified in their specialty area and are always available as contacts. This builds trust and ensures personal contact at all times. The BYK sales staff perform a wide range of functions; they handle order acceptance and order samples, provide our customers with product data sheets, and answer specific inquiries

11 Even more importantly, they maintain direct contact with the customers by meeting with them personally to inform them of the latest developments in the market and at BYK. Our sales representatives, agents and distributors receive regular training on technical and marketing topics. Extensive information about new products is provided in the form of presentations and through hands-on training courses in our laboratories. This ensures that sales representatives are always ready to share the latest know-how about products and technologies when they meet with customers. Our main Chinese sales center is located in the metropolis Shanghai. COATINGS PLASTICS INDUSTRIAL APPLICATIONS Our sales organization is structured both by region and also according to the three Business Lines: Coatings, Plastics, and Industrial Applications. Each field representative usually supports multiple customers of a Business Line within their region. They stay in constant contact with the technicians and researchers and also with the buyers. That s how our field representatives, agents and distributors always know exactly what the customers have on their mind. They pass that knowledge along to us at BYK headquarters. Their point of contact is the relevant sales department that reports the incoming information to the Business Line. We use that information to continuously update our assessments of current and future trends in the markets. A market with a bright future: China With its huge potential for the future, China has already been a very important market for BYK for more than 20 years. It is making a significant contribution to our growth and we have been giving it a high strategic priority. That s why BYK has established an extensive network of sales representatives and agents in China. The main sales office for BYK in China is located in the country s most important industrial city, Shanghai. We also maintain regional offices in Beijing and Guangzhou. Each of the three locations also has a service laboratory. We have production facilities in Tongling, a major industrial city on the banks of the Yangtze River the world s third longest after the Nile and the Amazon. Our agents are represented in many cities throughout the country, including Nanjing, Wuhan, Qingdao and Chengdu, where they provide local support to the customers. This sales organization enables us to cover the three most important economic regions North, Central, and South China where most of our target customers are located. Our dedicated team in China has an excellent knowledge of the regional markets. With regard to technical issues, our specifically trained employees are always able to communicate the required solutions. Having our service laboratories located near the customer plays an important role in this respect. Proactive thinking combined with a sense of harmony All of the employees of the BYK sales organization in China have earned at least one college degree. More than 20% of them hold degrees which are equivalent to a Master of Science (MS) or a Master of Business Administration (MBA). Team spirit, openness, proactive thinking and action, and a goal-oriented approach are the hallmarks of our team. These characteristics combined create an overall sense of harmony that the Chinese particularly appreciate. Our employees see themselves as advisors to their customers and have a comprehensive perspective that enables them to give our clients valuable information. He Jidong, Director of Sales & Marketing for Coating Additives in Shanghai, sums up the approach of his team this way: We concentrate entirely on satisfying the demands of our customers. As You Yu Fei, Head of the Industrial Applications Business Line, Nanjing elaborates, Their expectations and values are often the starting point of our actions. Advisors to our customers Richard Peng is BYK s Technical Service Manager in Guangzhou, the city of eight million located near Hong Kong in southern China. Mr. Peng reports: As advisors to our customers, we sell more than just a product: We also provide active support to help optimize quality and performance. Our products have to do more than just satisfy customer requirements: They also have to be able to meet statutory and environmental regulations. With its presence in China, BYK has established a good reputation in what is one of the most important markets in the world. The BYK brand is associated with reliable, high-performance products, and with excellent problem-solving expertise. With three service laboratories, an extensive sales organization, and regular personal contacts between customers and BYK experts, our network forms the basis for our continued successful development in China

12 The innovation team fosters innovative and creative thinking throughout the whole enterprise. That s the way we ve always done things is not part of the everyday language at BYK USA. Innovation culture made in the USA Being innovative means SMT teams ensure first-class support for our customers. With the customer always in mind, BYK USA has continually looked for new ways to be more efficient and effective at seemingly everyday work tasks. Continuing to do things just because it s the way we ve always done them is an unacceptable sentiment. Seek Opportunities Achieve Results To ensure that no employee gets complacent, BYK USA proactively tasks diverse, cross-functional groups of employees with projects and challenges designed to make BYK USA a more innovative and customer-focused company. This internal program is called SOAR (Seek Opportunities, Achieve Results). SOAR provides the opportunity for employ ees to contribute to the company in ways outside of their day-to-day job functions, and enables them to develop a broader view of the organization. It has resulted in the completion and implementation of more than 25 internal projects, ranging from improving the way we sample products to maintaining a more operational inventory. Distribution support network Great ideas require implementation to truly be considered innovation, and BYK USA has executed several. To most effectively service all customers, the entire sales and marketing organization was restructured with a principal group dedicated to supporting the efforts of distribution. This core team liaises and provides technical resources for distribution customers while allowing direct accounts unparalleled access to BYK USA s technical sales team, end use, and market managers. manager, SMT (sales, marketing, and technology) teams were formed to ensure streamlined and cohesive technical and commercial service for defined customers. This innovative and collaborative approach maximizes knowledge, and promotes communication essential to best service customers needs. Innovative thinking Recently, BYK USA made a pledge to formally instill a culture of innovation into each and every area of the company. A diverse team of BYK employees trained in innovation and creative thinking now functions to infuse this commitment and spirit throughout the company. Known as the i-team, this group of four is actively implementing new skills and techniques to break through innovation barriers, and managing the creative process. Members of this team have already facilitated internal innovation workshops which have resulted in the generation of several hundred ideas and the initiation of two new SOAR projects. Research shows that 67% of the statistical variance in the climate for creativity in an organization is directly related to the behaviors of the leader of that organization. This is certainly true at BYK USA where the leadership not only promotes but also truly embodies innovation. Being innovative means walkingthe-walk and not just talking-the-talk and at BYK USA that is exactly what you ll find. walking-the-walk and Successful marketing by SMT teams not just talking-the-talk. Author: Jill St. John Successful marketing of new or existing additives in the NAFTA region requires alignment of key people in the organization. Spearheaded and managed by the laboratory 22 23

13 I think the use of advanced materials in sporting goods has been an important innovation. These advanced materials make sports like golf and tennis much more enjoyable for me. Innovations make life easier: voices from the USA I get my best ideas in the morning, either at the health club or driving in the car to work. Driving is always a bit of a problem especially in trying to figure out how to capture those ideas. There are many days when I have a hard time trying to figure out what I had written! Erik Hulting, Technical Sales Representative & Innovation Team Leader, BYK USA Bruce Seeber, Business Line Manager, BYK USA Functionality incorporated into the smartphone has been important for me, and I would assume almost everybody else. Who could have imagined, even ten years ago, that you could carry in your pocket one device that could be used as a phone, appointment book, contact list, terminal, navigation system, stereo, internet browser, calculator, alarm clock and so much more. It can even be used to find out how far away you are from the hole on a golf course! Kevin Lassila, Technical Director & Innovation Team Leader, BYK USA I get my best ideas while I m asleep. My dreams have given me a fresh approach to many aspects in my life. Dianna Wanczyk, Accounting Manager & Innovation Team Leader, BYK USA 24 25

14 My best ideas come when I am interacting with other people. They may say something that can trigger a thought and then we can bounce it back and forth to come up with something really interesting. Dirk Plas, President, BYK USA I ve always thought it would be great if we had a TV screen on our foreheads that showed what we were really thinking...now that would be innovative! Jill St. John, Marketing Services Manager & Innovation Team Leader, BYK USA I am very interested in improvements that allow people to accomplish their normal day to day tasks in the most efficient manner thereby allowing them more time for items such as analytics and strategic thought. Nick Caputi, CFO, BYK USA Innovations most important to me are those that improve and positively impact my life and the lives of those around me. Lindsay Oddo, Marketing Services Coordinator, BYK USA 26 27

15 Good service satisfied customers Accepting and processing orders, providing information; our customer service team is the personal contact for very practical matters from all over the world. They handle everything, right down to the specific details. Attitude is everything. Our support team sees itself as a problem solver. Satisfied customers are our prime objective. Our customer service employees know that innovation and working closely with the customer are intrinsically linked. Is the new additive already available? How long is the delivery lead time? Would you please send us the product specifications? Can we have the products sent express? What is the shelf life of the additive? Information such as this is important for smooth operation and order processing. The 16-person support team is also ready to provide a few innovative services. Most orders arrive in our customer center in Wesel by fax or and are processed without having to meet special formal requirements. Those orders come from all over the world, originating either from the customers themselves or from our agents and distributors who operate their own warehouses and supply our customers from there. Many questions every day Our support team answers many questions every day. This involves prices and delivery times, for example, or the status of orders. Our customers also often want to know details concerning quality and environmental management, packaging, technical specifications or other supply agreements. Some want to register complaints about goods received. Sometimes when highly detailed information is required, the company s technical experts are consulted; but with most questions, the team can provide the right information immediately. Because our agents and sales staff represent us all over the world, each customer has a personal contact for our products right there in their own country. Our customers can test each additive because we send them free-of-charge samples within a few days. We quickly find the right information to answer every inquiry and when we don t know all the details ourselves here in customer service, we do know who we can turn to within the company for assistance. That s how we support our customers fast and efficiently

16 Many questions many answers. Delivery times, minimum order quantities, product descriptions: Our customers ask us lots of questions every day. We have put together some of the key facts in the following. How long are the delivery times? The fastest deliveries are possible within Germany. After the products leave the plant, our customers in Germany receive what they requested in two days or less. Within the EU, delivery by truck takes four to ten days. Customers outside of the EU can expect to receive the products within five to ten days when delivered by truck. Ocean freight shipments require four to six weeks. Are express deliveries possible? Of course! To any destination in the world, by plane or by truck. The route and means of transport selected depend on the specific details of order such as how large the order is, does it involve material which must be classified as dangerous goods, etc. We clarify the associated costs for our customers on a case-by-case basis in cooperation with our logistics department. How large are the minimum order quantities? Except for our sample shipments, we assume that our cus tomers will order at least one can. Depending on the product, this means 25 or 20 kilograms. Orders of one ton or more are delivered directly to the customer s site. Can you send us the product specifications? Our product data sheets can be downloaded from our website. There we provide our customers with detailed descriptions and information sheets about all of our additives in the following languages: English, German, French, Italian, Spanish, Portuguese (Brazilian), Chinese and Japanese. Some of our safety data sheets have also been translated into other languages. Where can I obtain the customs numbers for BYK additives? Our website provides our customers with lists of the customs numbers and tariff numbers for all BYK products. Are BYK products REACH-registered? All raw materials used in the manufacturing of BYK products were registered with the responsible EU central office before the deadline on November 30, In cases where BYK uses materials as a Downstream User (DU), we have ob tained confirmation from our suppliers that they have also registered their raw materials. Further details are available from the internet on our page about the REACH program: Are BYK additives food safe? This differs from product to product and depends on whether the product can even come in contact with food at all. In the BRIEF team (BRIEF = BYK Regulatory Information Extensive Form), there is a specialist on food regulatory issues who is ready to respond to inquiries in person and can provide detailed information. Can BYK additives be used in toys? Not all of them are suitable. We recommend testing / examining them individually. What is the shelf life of BYK additives? This differs from product to product. Our Additive Guide, which can also be accessed from our website, lists all products in detail. The information in the Additive Guide also includes the shelf life of each of our additives. HOW ARE WE INNOVATIVE? An excellent infrastructure, a dedicated workforce, and an outstanding knowledge of the markets that is our recipe for success for attractive new products

17 Well-equipped for the future Dedicated workforce and first-class facilities 32 33

18 With the help of our excellent facilities we are able to simulate specific customer problems in our end-use labs. Along with qualified and motivated colleagues, it takes state-of-the-art laboratories, infrastructure, and efficiently designed processes to be well prepared for the future. These prerequisites are necessary in order to be able to quickly address the needs of our customers in the different markets. They are also indispensable for the proactive development of new technologies and the identification of important trends. That s why our central research laboratories and technical applications departments at our headquarters in Wesel, Germany are supported by a multitude of service laboratories, which act worldwide in close cooperation with the customer and provide local application engineering support. Customer focus: the application laboratories Our philosophy of working closely with the customer is clear from the way our company is organized. The different application areas that use BYK additives are supported by end-use departments, which in turn have the relevant application engineering equipment. In those end-use laboratories, we simulate the typical production processes and applications of our customers. application can be realistically taken into account during the development of the additives. Other highlights of our application engineering technology include an SMC unit for analyzing compounds and fiber injection units for plastics, which we can use to reproduce specific customer problems. The paper coatings laboratory has recently been equipped with a laboratory defoaming unit, laboratory-scale coating systems, calendering facilities on sheets and rolls, and a lab curtain coater. More room for research The fourth quarter of 2011 will mark a major milestone: The new laboratory and research building will finally go into operation at BYK headquarters in Wesel, Germany. This will expand the capacities that already exist. Of the nearly 5,600 square meters of new floor space, about half of the three-story building will be used primarily by our Research & Development organization. Biotechnology and Analytics will also be based there in the future. The remaining space will be used by the Plastics and Industrial Applications business units. We can use our ESTA unit, for example, to simulate coating processes in the automotive industry. The advantage of this approach is that the special aspects of a particular end For the development of new plastics additives, BYK will expand its pilot laboratory in the new building. The pilot laboratory includes an injection molding unit, a press for 34 35

19 We are close to our customers everywhere with our service labs. SMC materials, and a modular PVC plant with extruders and calenders. In the planning of the new building and its functional integration with the existing laboratories, we made sure that the architecture provides easy access between areas within the building and to the other buildings. Specifically designed open areas that we call Creative Zones will encourage employees to exchange opinions and ideas. Many years of experience have taught us that nothing is more important for innovation than openness and effective communication. developments keep BYK employees all over the world up to date. Moreover, international exchange within the corporate group serves to maintain a knowledge network on the leading edge. Structured creativity New product development is unthinkable without new ideas and a great deal of creativity. At BYK, all of our col leagues are encouraged to submit their ideas and suggestions for the development of new products. Not all ideas can be implemented immediately, of course. International service laboratories BYK is more than a supplier of products. We see ourselves as a manufacturer that delivers solutions to address the specific needs of customers. That s why we not only ensure the continuous expansion of our product portfolio, but also help our customers resolve their individual problems. Our service laboratories in Brazil, Germany, China, India, Japan, Korea, the Netherlands, and the USA play a lead role by providing timely on-site technical service in the local lan - guage. These regional laboratories keep us close to our customers in every sense of the word. Our highly qualified employees are familiar with the applicable statutory requirements along with the current conditions and future trends in the regional markets. Regular training courses on new technical So, along with factors such as technical feasibility of the idea, suggestions also have to be evaluated for their market potential and profitability. That s why it is important for us to evaluate new ideas within the framework of a transparent, structured process, so we can then specifically promote the development of the most promising ideas. We established our Product Development Process for this purpose. Representatives of all departments concerned participate in the evaluation of the individual ideas. This includes Management, End-use, Research & Development, Product Group and Innovation Management, and Marketing & Sales. All projects which are pursued further undergo a de fined process which culminates in the successful market launch

20 Innovation award BYK Advance Brilliant and universally applicable DISPERBYK is suitable for all standard dispersion systems. 38 End customers are becoming more and more demanding and the requirements that specialty chemicals must satisfy are also changing accordingly. With growing environmental consciousness in the early 1990s, water-soluble systems emerged as an important trend in additive chemistry. Today, those waterborne products have to feature additional properties as well. Now coatings may contain hardly any volatile organic compounds (VOCs), yet they must maintain the same good dispersing qualities as their predecessors. With DISPERBYK we have developed a product that meets all of these requirements. It represents a consistent further development of our additive family for aqueous systems that began with DISPERBYK -184 for resin-containing grinds. That was followed by the development of DISPERBYK -190, which has become the standard for resinfree grinds. The new polymer is based on an innovative comb structure produced by means of CPT (Controlled Polymerization Technology). Its unique feature is its suitability for both commonly used types of dispersions pigment dispersions with resin and also slurry grind, dispersion without resin. BYK Advance innovation award There were also other reasons why we recognized DISPERBYK with our BYK Advance innovation award this year. Along with the technical innovations, our employees did outstanding work from an organizational standpoint. The business potential of the additive is highly promising. Its development was ultimately made possible through exemplary cooperation among multiple teams: Research, Product Group Management and End-use. Our new dispersing additive actually resulted from two different projects. The first was dedicated to the development of a new wetting and dispersing additive for resinfree grinds in the presence of surfactants, amines and possible solvents, and for resin-containing grinds in different aqueous binders. The second was aimed at the systematic screening of existing and new wetting and dispersing additives for water-soluble applications. Tests at customer facilities produced good results The two projects were launched under the direction of Mark Heekeren and Dr. Stefan Mössmer, respectively, in 2007 and Just one year later, initial development results were already available. They were then tested in our customers system and found to be effective. Following further optimization and customer tests, we had a product with proven positive application properties by Then in 2010 we were able to launch the product under the name DISPERBYK The new product is the additive of choice for water-soluble resin binders and emulsions with organic or inorganic pigments. It is particularly well suited for automotive and industrial coatings, and is also used in architectural coatings and printing inks. It is extremely effective for raising the transparency and color brilliance of coatings. This is especially true for metallic coatings. With black coatings, high jetness values i. e., deep black colors with a bluish undertone can be achieved. Superior performance in head-to-head comparison Direct comparisons of grinds formulated with water-soluble resins with conventional additives confirm the superiority of DISPERBYK DISPERBYK unifies variations of different pigment-affinic groups and interacts particularly well with organic pigments. The hydrophobic core structure is supplemented by hydrophilic side chains which contain polar-modified resin-compatible groups and permit an outstanding level of steric stabilization. In resin-free grinds, DISPERBYK permits the presence of amines, rheology additives, co-solvents and surfactants without negative effects on the end result. 39

21 Innovative polymer emulsifiers on the basis of T.A.P.E. technology BYK -P 9908 and BYK -P 9909 Authors: Dr. René Nagelsdiek, Dr. Ralf Hoffmann, Christian Biecker Anyone who goes to the kitchen and tries to mix vinegar and oil for a salad dressing will find that even after thorough stirring the two liquids do not get along well together and soon part company again. This phenomenon is known as phase separation. Nonetheless, we are all familiar with stable mixtures of incompatible liquids in everyday life: Mayonnaise, for example, consists of finely distributed droplets of oil in water, a so-called emulsion. How is this possible? When you stir two incompatible liquids together, the energy applied by the stirring action first forms small, finely distributed droplets of the one liquid in the other. But the fine droplets quickly flow together, merging into ever larger ones, which then separate out from the other liquid again. For our example, this means they become vinegar and oil again. In order to stabilize a mixture of two incompatible liquids together for a longer period of time, we use emulsifiers which accumulate at the interfaces between the two liquids and stabilize the droplets by preventing the much smaller droplets from merging into larger ones. Egg yoke, which contains components that serve as emulsifiers, is used in this way to produce mayonnaise. A technical challenge The phase separation problems described here occur not only in the kitchen, but also in a very similar form in industrial applications. One important technical question is how to stabilize so-called polyol blends against separation. Large molecules with multiple alcohol groups, polyols are hardened into polyurethanes with a second component (isocyanate). In order to give these polyurethane materials the desired property profile (e.g. as material for sealants, elastic materials, glues or foams), the polyols must be mixed with other components such as chain extenders or crosslinkers. In many cases, these chain extenders are incompatible with the polyols and separate just like vinegar and oil. As a result, the use and handling of these raw materials are subject to limitations and accordingly require additional effort and expense. The incompatible components always have to be mixed together right before use in the production facility of the processing operation or at the construction site. This is not only complicated, but it also creates a situation for a possible source of error. It would make better sense if the components could be blended into a product which would remain stable during storage. Unfortunately, no suitable emulsifiers were available. The solution: BYK -P 9908 and BYK -P 9909 Thanks to the new process additives BYK -P 9908 and BYK -P 9909, this problem has now been solved. These two products are based on an innovative concept that uses the possibilities of our Controlled Polymerization Technology (CPT) to create a new class of emulsifiers. These new emulsifiers combine two amphiphilic polymeric active ingredients i.e., large molecules with polar and non-polar segments. The two components form a perfect match. One of the components has a positive electrical charge and the other has a negative electrical charge. So we refer to this type of emulsifier as a Twin Amphiphilic Polymeric Emulsifier or T.A.P.E. for short. The one active ingredient exhibits better compatibility with the polyol, while the other tends to be more soluble in the chain extender. With the incorporation of the additive into the polyol/chain extender mixture, the components of our emulsifier tend to migrate towards the corresponding liquid. Within this phase, they are mobile so they also reach the interface of the two liquids. This is where the interaction between the two components of our additives comes into play: Their opposite electrical charge incites the attraction of the components to one another. This electrostatic force of attraction causes the two components to join closely to each other at the interface between polyol and chain extender. In this fixed condition, the complementary arrangement of the charged polymers in turn stabilizes the interface between polyol and chain extender and effectively prevents their separation. No innovation without customer benefits BYK -P 9908 and BYK -P 9909 offer important benefits for the industry. Until recently, mixtures of polyols and chain extenders had to be produced just prior to use; so together with the isocyanate components, three components had to be mixed. BYK s new answer to this problem means only two components have to be mixed prior to use instead of three: the stabilized polyol/chain extender mixture and the isocyanate component. This eliminates the need to prepare the polyol/chain extender mixture, thereby also eliminating a possible source of error and saving valuable time. The customer benefits immediately from easier handling and from the time savings. Additionally, it also reduces the risk of complaints. Such polyol mixtures have a wide range of applications. Matched systems of this type are used on construction sites and oil platforms, for example, and also in automotive headliners. Up until now, the customer first had to prepare the mixture of polyol and chain extender at the construction site, and then the hardener the isocyanate component had to be added afterwards. With BYK -P 9908 and BYK-P 9909 that first step is no longer necessary so the customer can process the systems much faster. High interfacial activity leads to improved emulsion stability Polyol Chain extender Arrangement of amphiphilic polymers at the interface Hydrophobic phase (polyol) Hydrophilic phase (chain extender) Amphiphilic polymers Amphiphilic block copolymer prepared by CPT methods Interfacial area The T.A.P.E. emulsifiers act on the interface between polyol and chain extender. The liquid droplets of the chain extender are stabilized in the polyol. As a result, the polyol blend remains stable and can be stored; fewer steps are required during use and costs can be saved

22 Successful concept now for aqueous systems ANTI-TERRA -250 stabilizes fillers and pigments. Dispersing agents for organic pigments and carbon blacks The newest member of the DISPERBYK -190 family is an ideal addition: DISPERBYK Authors: Dörte Claußen-Dietsch, Stefan Gollnick Authors: Dörte Claußen-Dietsch, Stefan Gollnick The trend towards environmentally friendly aqueous coating systems already extends to coating systems that use traditional solvent-borne technologies such as epoxy coatings. In order to formulate such coating systems, inorganic pigments and fillers are used. Due to their specific weights, they are susceptible to phase separation and precipitation. Although the deflocculating dispersion additives normally used in aqueous systems provide perfect pigment stabilization, they tend to increase the predisposition to settling. In order to achieve pigment settling in solvent-borne systems with pigment stabilization at the same time, ANTI-TERRA -250 is suited for primers, architectural coatings and floor coatings. controlled flocculating wetting and dispersing additives such as ANTI-TERRA -203 and ANTI-TERRA -204 were developed a few years ago. Along with excellent pigment stabilization, these additives also provide another benefit: They prevent heavy pigments from settling. The additives form a three-dimensional network via hydrogen bonds, thereby preventing inorganic pigments and fillers from settling. In order to meet this challenge for aqueous systems too, BYK has now taken the successful concept of ANTI-TERRA -203 and ANTI-TERRA -204 and developed a successor for aqueous systems: ANTI-TERRA ANTI-TERRA -250 is ideally suited for the stabilization of fillers and inorganic pigments, thereby ensuring excellent color acceptance and low ΔE values in the coating system. It prevents these pigments from flooding / floating and the established thixotropy prevents sagging and settling in aqueous systems. The additive also has a high solids content and is solvent-free. The wetting and dispersing additive is used in a variety of products, including water-dilutable primers, architectural coatings and floor coatings. ANTI-TERRA -250 enhances leveling properties, especially in aqueous self-leveling floor coatings based on epoxy resin. Differences in chemical properties or in the surface treatment of pigments are the reason ink manufacturers need wetting and dispersing additives specifically tailored to individual requirements. In 1990, BYK introduced a wetting and dispersing additive for aqueous pigment concentrates that was effective with many of the organic and inorganic pigments commonly used in the ink industry. Thus the introduction of DISPER- BYK -190, established a benchmark for the industry. Although DISPERBYK -190 is universally applicable, it exhibited minor deficiencies in the wetting and dispersing of a few pigments. In order to cover the most frequently used organic pigments and carbon blacks, BYK has now developed the ideal complement to DISPERBYK -190: DISPERBYK This new high-performance wetting and dispersing additive from BYK provides a number of key benefits. For example, DISPERBYK -198 is effective with organic pigments and carbon blacks for which DISPERBYK -190 performs at below optimum levels. Together, the two additives cover the full spectrum of most commonly used organic pigments and carbon blacks. The new product is easy to use and requires only a few simple tests in order to obtain desired results. The use of DISPERBYK -198 makes it possible to achieve outstanding color intensity, high gloss, and high transparency with low pigment loading. The viscosity of the pigment concentrates is low so high shear forces are not required and the pigment concentrates can be easily processed. This equates to time and energy savings. The excellent storage stability of the pigment concentrates and inks in which DISPERBYK -198 is used eliminates the need for additional stirring. This in turn means fewer customer complaints. Also in aqueous coatings Like inks, coating technology has also achieved significant advancements over the past 20 years. As with wetting and dispersing additives, the demands on the quality of raw materials have increased. The chemical properties and surface treatment of pigments along with advanced binder technology enable a broad range of high-quality systems which require the use of corresponding additives. The new DISPERBYK -198 is able to stabilize pigments where standard solutions fail. It provides outstanding results with carbon blacks and organic pigments such as yellow and (red-)violet hues