Our know-how for your safety
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1 Our know-how for your safety Nabaltec: a leading supplier of eco-friendly halogen-free flame retardant fillers and additives, and raw materials for technical ceramics Presentation 21st Bauxite & Alumina Conference, Miami USA, 25th of February
2 Nabaltec products make many aspects of everyday life safer. They are eco-friendly, longlasting and an irreplaceable part of your daily routine. 2 2
3 What we will be talking about 1. The company 2. Aluminium trihydrate a versatile product 3. A mineral flame retardant filler volumes and growth perspectives 4. An innovative product for the future 3 3
4 1. The company The company Industry The chemical industry Sites Schwandorf (Germany) Kelheim (Germany) Corpus Christi (USA) Employees Revenues 2013 EUR million EBIT 2013 EUR 10.5 million Nabaltec in Schwandorf Nashtec, Corpus Christi (USA) Business divisions and markets worldwide Functional Fillers Cable & wire industry Plastics industry Catalysis Electrical and electronics industry Technical Ceramics Technical ceramics industry Refractory industry Abrasives and polishing agents 4 4
5 1. The company Business division Functional Fillers : products and markets Flame retardant fillers: Eco-friendly aluminum hydroxide as a halogen-free flame retardant, fume-reducing and non-toxic Additives: Functionalized fillers as processing aid and protection against thermal impact of plastics Boehmite: Halogen-free flame retardant with high processing and service temperatures Construction e.g. power cables (MV, LV), insulation, plastic profiles Chemicals e.g. additives and fillers, catalysts, thermosets E&E-Industry e.g. cables for data, telecommunication, wind energy, plug connections, PCBs, batteries Transportation e.g. interior, cable coatings, rubber elements Other e.g. pigments for colours and varnishes, paper applications 5 5
6 1. The company Business division Technical Ceramics : products and markets Ceramic raw materials Aluminum oxide as robust, wear-proof and heat resistant raw material for the refractory industry and technical ceramics Ceramic bodies Ready to press bodies based on aluminum oxides, special applicationtailored Refractories e.g. furnace linings Ceramics e.g. tiles, glazes, seals, kiln rollers E&E-Industry e.g. high-voltage insulators, spark plugs Mechanical engineering e.g. engineering ceramic components, wear protection Defense technology e.g. ballistic protection Chemicals e.g. polishing agents, catalysis Other e.g. automotive: friction linings 6 6
7 What we will be talking about 1. The company 2. Aluminium trihydrate a versatile product 3. A mineral flame retardant filler volumes and growth perspectives 4. An innovative product for the future 7 7
8 2. Aluminium trihydrate a versatile product The material flow and its various applications COMMODITY PRODUCTION SPECIALTY APPLICATIONS Refractories Non Smeltergrade Alumina Technical Ceramics Abrasives/ Polishing Bauxite Mine Bayer Alumina Plant Smeltergrade Alumina Aluminiumtrihydrate Aluminiumtrihydrate Catalysts Watertreatment Aluminium Production Detergents/ Catalysts Flame Retardants Other Fillers 8 8
9 2. Aluminium trihydrate a versatile product Aluminium trihydrate a versatile product ATH in Chemicals Watertreatment Al-Chloride Al-Sulfate Sodium Aluminates ATH as a Filler Flame Retardants Core market Aluminiumindustry Al-Fluoride 3,305 kt 760 kt 1) Detergents Catalysts Synthetic Zeolites 995 kt Others 110 kt Paints & Coatings Paper & Pigments Gas Adsorption Catalysis, Catalytic Carriers Synthetic Marble Adhesives & Sealants Activated Aluminas 1)Source: Roskill 2012 Note: Dry aluminium hydroxide Al(OH) 3 9 9
10 What we will be talking about 1. The company 2. Aluminium trihydrate a versatile product 3. A mineral flame retardant filler volumes and growth perspectives 4. An innovative product for the future 10 10
11 Temperature 3. A mineral flame retardant filler volumes and growth perspectives Flame retardants reduce the risk of fire and extend the time until flash over Total fire inflicted damages amount to approx. EUR 200 bn in the USA (approx. 2% of GDP) The escape time has fallen from 17 minutes in 1975 to 3 minutes today Flame retardants reduce heat by 25%, material burned by 50% and CO gases by one third The main application for flame retardants is in plastics (especially cables) Chemical reaction of ATH in the case of fire: 2Al(OH) 3 => Al 2 O 3 + 3H 2 O energy (-1050 kj/kg) energy energy Ignition source Primary decomposition ZONE OF FLAME PREFLAME ZONE Effects of ATH Secondary decomposition De-oxygenation energy water energy cut off Fire extinction and escape possible Start of fire: one object is ignited, fire develops in that item, fire spreads to nearby items Fully developed fire: all flammable objects in the room are ignited start of fire flashover time 11 11
12 3. A mineral flame retardant filler volumes and growth perspectives Mineral flame retardant filler market is split into two major groups Flame retardant fillers to improve flame retardancy of polymers/plastics The flammability of an organic/polymeric material can be adequately retarded by the right choice of flame retardant Challenge remains to optimise the use of flame retardant chemicals without compromising the desired physical properties Market for flame retardant fillers is divided into: Non-halogenated fillers Halogenated fillers Flame retardants Non-halogenated fillers Halogenated fillers 12 12
13 3. A mineral flame retardant filler volumes and growth perspectives Halogen-free products amount to approx. 60% of the Global Flame Retardant Chemicals Market in 2011 World market flame retardants Total demand in the flame retardant market have been estimated to be around 2,000,000 mt Global flame retardants demand by product Halogen-free products account for approx. 60% of produced flame retardant units based on volume Biggest halogen-free product by volume is ATH 2011: 2.0 million metric tons antimony 8.9% other 14.7% aluminum hydroxide 30.0% Phosphorous based products also well established as HFFR (= Halogen Free Flame Retardant) Other halogen free flame retardants comprise: Melamine products chlorinated 11.3% Phosphorus 14.5% brominated 20.6% Zinc based products Magnesiumhydroxide Source: The Freedonia Group, Inc
14 3. A mineral flame retardant filler volumes and growth perspectives ATH - a world wide used halogen-free product Main applications for ATH as flame retardant filler Global ATH consumption by region 2011 ( 000 mt) Wire & Cable Industry - ATH a preferred HFFR for compounders and wire manufacturers Construction Primary use of ATH for plastic, Japan, 80 China, 30 Others, 50 Europe, 250 elastomeric roofing and insulation Electrical/Electronics ATH usage in printed circuit boards or epoxy resins for thermosets Motor Vehicles - ATH as flame retardant with widespread use in reinforced thermoset composites N/S America, 350 Textile ATH the product of choice for latex back coatings including carpets and rugs Source: Roskill
15 3. A mineral flame retardant filler volumes and growth perspectives Tightening of environmental regulations and safety precautions Drivers for ATH as halogen free mineral flame retardant Enactment of RoHS & WEEE Directives limit the usage of brominated flame retardants in the EU in electrical and electronic equipment REACH tighten the measures for usage of critical chemicals in Europe this leads to a further scrutiny of brominated flame retardants China adopted similar regulations to RoHS and REACH to restrict certain brominated flame retardants in electronic equipment EPA (Environmental Protection Agency) of the USA stopped manufacturers of using decabde (bromodiphenyl) for most applications by end 2012 Trend to safer and environmental friendlier products support world wide growth of L = Low S = Smoke F = Fume O = Zero H = Halogen based products Governmental regulations are in place and support that trend Independent commitment by OEMs not to use brominated flame retardants 15 15
16 3. A mineral flame retardant filler volumes and growth perspectives Consumption of plastics drives market for flame retardants World market flame retardants CONSUMPTION OF PLASTICS IN MN TONS Consumption of plastics amounted to million tonnes in 2010 worldwide % Expected market growth: approx. 5.87% CAGR ( ), reaching approx million tonnes in 2015 Relevant market where ATH based products can be applied: Polyethylene Polyvinylchloride % 7.5% 4.6% 7.9% 3.7% 5.0% 8.0% 7.0% 5.8% 5.9% 6.0% 5.0% 4.0% 3.0% 2.0% CGAR Key industries % thermoplastic industry (compounders for cable & wire industry) elastomeric industry (manufacturer for insulation and gaskets) duroplastic industry (manufacturer for reinforced plastics) 0 0.0% Source: The Freedonia Group, Inc
17 3. A mineral flame retardant filler volumes and growth perspectives Halogen free flame retardants on the rise ATH growth perspectives Potential for halogen-free flame retardants Market forecast halogen-free flame retardant Three directions of impact for the growth of HFFR: Non flame retarded plastics 70% Flame retarded plastics 30% Plastics with halogenated flame retardants 18% Plastics with HFFR 12% - polymers gain importance as effective raw material Source: Arbeitsgemeinschaft PVC und Umwelt, EFRA - more polymers bear a higher risk of fire load and demand more flame retardancy - HFFRs substitute more and more halogenated flame retardants CAGR 6.7 % until 2021 based on ATH (The Freedonia Group, Inc. 2013) 5% p.a. until 2017 based on ATH (Roskill 2012) antimony 8.9% chlorinated 11.3% other 14.7% Phosphorus 14.5% aluminum hydroxide 30.0% brominated 20.6% in ( 000 mt) World Flame retardant demand ATH demand Source: The Freedonia Group, Inc Source: The Freedonia Group, Inc
18 What we will be talking about 1. The company 2. Aluminium trihydrate a versatile product 3. A mineral flame retardant filler volumes and growth perspectives 4. An innovative product for the future 18 18
19 4. An innovative product for the future Demands by industry to higher performance products rise New requirements to product properties Environmental, health and safety profile Trend to finer (submicron) material in our industry High thermostability gains importance to HFFR Higher BET (surface area) an important property for a variety of applications 19 19
20 4. An innovative product for the future Boehmite: the solution and silver bullet A flame retardant synergist for higher temperature applications Boehmite (Aluminium Oxide Hydroxide, AlOOH) AOH: 2AlOOH 340 C +700 kj/kg Al2O3 + H2O high temperature stability up to 340 C good processability usable as co-flame retardant excellent synergist to phosphor shows good HFFR properties in CCL and PCB applications 20 20
21 4. An innovative product for the future Boehmite: the solution and silver bullet ATH and AOH: new field of environmental applications Superfine hydrates as usage for waste gas treatment Pseudoboehmites for - FCC (= Fluid Catalytic Cracking) Refining - Hydrotreatment catalysis (gas absorption) - Wash coat (automotive) Boehmite finds many new applications in - Electro mobility (separator foils in lithium ion batteries) - Energy storage (heavy duty batteries) 21 21
22 "The future belongs to those who see possibilities before they become obvious. (J.Sculley former CEO of Pepsi-Cola and Apple) Thank you for your attention! Johannes Heckmann Nabaltec AG Alustr Schwandorf Germany 22 22
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