Thermoplastic Polyolefin Elastomers
December 2014 Report Contents
Thermoplastic Polyolefin Elastomers Table of Contents A Report by NexantThinking™ Process Evaluation/Research Planning (PERP) Program PERP Report 2014S12– Published December 2014
www.nexantthinking.com Section 1
2
Page
Executive Summary ...............................................................................................................
1
1.1
OVERVIEW ...............................................................................................................
1
1.2
MAJOR CATEGORIES OF THERMOPLASTIC POLYOLEFIN ELASTOMERS ......
2
1.2.1
In-Situ TPOs .................................................................................................
2
1.2.2
Compounded Thermoplastic Olefinics (TPOs) ............................................
2
1.2.3
Thermoplastic Vulcanizates (TPVs) .............................................................
2
1.2.4
Polyolefin Elastomers ...................................................................................
3
1.2.5
Olefin Block Copolymer ................................................................................
3
1.3
TECHNOLOGY REVIEW AND ECONOMICS ..........................................................
3
1.4
MARKET ANALYSIS .................................................................................................
5
1.4.1
In-Situ TPO ...................................................................................................
5
1.4.2
Compounded TPOs......................................................................................
5
1.4.3
TPVs .............................................................................................................
6
1.4.4
Polyolefin Elastomers (POE) ........................................................................
6
Introduction .............................................................................................................................
8
2.1
MAJOR CATEGORIES OF THERMOPLASTIC POLYOLEFIN ELASTOMERS ......
8
2.1.1
In-Situ TPO ...................................................................................................
8
2.1.2
Compounded Thermoplastic Olefinics (TPOs) ............................................
8
2.1.3
Thermoplastic Vulcanizates (TPVs) .............................................................
8
2.1.4
Polyolefin Elastomer.....................................................................................
9
2.1.5
Olefin Block Copolymers ..............................................................................
9
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2.2
VALUE CHAIN ..........................................................................................................
10
2.2.1
In-situ TPO ...................................................................................................
10
2.2.2
Compounded TPO .......................................................................................
10
2.2.3
Thermoplastic Vulcanizates (TPV) ...............................................................
12
2.2.4
Polyolefin Elastomer.....................................................................................
14
2.2.5
Olefin Block Copolymers (OBCs) .................................................................
14
OVERVIEW OF TECHNOLOGIES ...........................................................................
15
2.3.1
In-situ TPO ...................................................................................................
15
2.3.2
Compounded TPO and TPV ........................................................................
15
2.3.3
Polyolefin Elastomers ...................................................................................
16
2.3.4
Olefin Block Copolymers ..............................................................................
16
LICENSORS AND TECHNOLOGY HOLDERS ........................................................
16
2.4.1
In-situ TPO ...................................................................................................
16
2.4.2
Thermoplastic Vulcanizates .........................................................................
17
2.4.3
Compounded TPO .......................................................................................
17
2.4.4
Polyolefin Elastomers ...................................................................................
17
2.4.5
Olefin Block Copolymers ..............................................................................
18
2.5
BUSINESS AND STRATEGIC ANALYSIS REVIEW ................................................
18
2.6
PROPERTIES ...........................................................................................................
21
2.6.1
In-Situ TPO ...................................................................................................
21
2.6.2
Compounded TPOs......................................................................................
21
2.6.3
Thermoplastic Vulcanizates (TPVs) .............................................................
22
2.6.4
Differences between In-Situ TPOs, Compounded TPOs and TPVs ............
23
2.6.5
Polyolefin Elastomers (POE) ........................................................................
27
2.6.6
Olefin Block Copolymers ..............................................................................
28
REGULATORY REQUIREMENTS ...........................................................................
30
2.7.1
Health Hazards.............................................................................................
30
2.7.2
Storage and Transportation .........................................................................
30
Technology .............................................................................................................................
31
3.1
CHEMISTRY .............................................................................................................
31
3.1.1
Polypropylene...............................................................................................
31
3.1.2
In-Situ TPOs .................................................................................................
32
3.1.3
Compounded TPOs......................................................................................
34
3.1.4
TPVs .............................................................................................................
34
3.1.5
POEs ............................................................................................................
35
2.3
2.4
2.7
3
December 2014 Report Contents
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3.1.6
Olefin Block Copolymers (OBCs) .................................................................
35
PROCESS DESIGN ..................................................................................................
37
3.2.1
In-Situ TPO ...................................................................................................
37
3.2.2
Compounded TPOs......................................................................................
47
3.2.3
Compounded TPVs ......................................................................................
52
3.2.4
Polyolefin Elastomers ...................................................................................
52
3.2.5
Olefin Block Copolymers ..............................................................................
59
Economics ..............................................................................................................................
63
4.1
COSTING BASIS ......................................................................................................
63
4.1.1
Investment Basis ..........................................................................................
63
4.1.2
Pricing Basis .................................................................................................
63
4.1.3
Cost of Production Basis ..............................................................................
64
INVESTMENT ...........................................................................................................
65
4.2.1
Compounding Lines .....................................................................................
65
4.2.2
Polymerization Plants ...................................................................................
66
4.3
ECONOMICS ............................................................................................................
67
4.4
RAW MATERIAL SENSITIVITY ................................................................................
90
4.4.1
In-Situ TPO ...................................................................................................
90
4.4.2
Compounded TPO and TPV ........................................................................
90
4.4.3
Polyolefin Elastomer.....................................................................................
91
Commercial Applications ........................................................................................................
94
5.1
TRENDS IN MARKET ...............................................................................................
94
5.1.1
In-Situ TPO ...................................................................................................
96
5.1.2
Compounded TPO .......................................................................................
100
5.1.3
TPV...............................................................................................................
103
5.1.4
Polyolefin Elastomers ...................................................................................
107
5.1.5
Olefin Block Copolymers ..............................................................................
111
Regional Market Analysis .......................................................................................................
115
6.1
IN-SITU TPOS ...........................................................................................................
115
6.1.1
Market Analysis ............................................................................................
115
6.1.2
Supply Analysis ............................................................................................
115
3.2
4
4.2
5
6
December 2014 Report Contents
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Thermoplastic Polyolefin Elastomers
6.2
6.3
6.4
December 2014 Report Contents
COMPOUNDED TPOS .............................................................................................
117
6.2.1
Demand Analysis .........................................................................................
117
6.2.2
Supply Analysis ............................................................................................
117
TPV............................................................................................................................
120
6.3.1
Demand Analysis .........................................................................................
120
6.3.2
Supply Analysis ............................................................................................
121
POLYOLEFIN ELASTOMERS ..................................................................................
123
6.4.1
Demand Analysis .........................................................................................
123
6.4.2
Supply Analysis ............................................................................................
124
Appendix
Page
A
Nexant's Capital Cost Estimate ..............................................................................................
A-1
B
PERP Program Title Index (2005 - 2014) ..............................................................................
B-1
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December 2014 Report Contents
Figure
Page
2.1
In-Situ TPO Value Chain ........................................................................................................
10
2.2
Evolution of Compounding Business .....................................................................................
11
2.3
Compounded TPO Value Chain .............................................................................................
12
2.4
TPV Value Chain ....................................................................................................................
12
2.5
Independent Compounders’ Range of Services or “Activities” ..............................................
13
2.6
Value Chain Polyolefin Elastomers ........................................................................................
14
2.7
Value Chain Ethylene- and Propylene-Based Olefin Block Copolymers ...............................
15
2.8
Morphology of CATALLOY In-Situ TPO .................................................................................
21
2.9
Morphology of Compounded TPO .........................................................................................
22
2.10 Relationship between Viscosity and Component Proportion in Mixture.................................
22
2.11 Morphology of Thermoplastic Vulcanizate .............................................................................
23
2.12 Effect of Cross-Link Density on Tensile Strength and Tensile Set of TPV ............................
23
2.13 Phase Arrangements of Polymer/Elastomer Blends ..............................................................
24
2.14 Crystallinity ranges for Elastomers and Polypropylene ..........................................................
28
2.15 Polyolefin-based Elastomer Micro-Structure ..........................................................................
28
2.16 Olefin Block Copolymer Structure ..........................................................................................
29
2.17 Schematics of the Structural Difference between OBC and Random EO Copolymers with Low Crystallinities ..........................................................................................................
29
2.18 OBC’s Density versus Crystallization Temperature ...............................................................
30
3.1
Polypropylene Structure .........................................................................................................
32
3.2
Polypropylene Technology/Market Matrix ..............................................................................
33
3.3
Chain Shutting Process for OBC Production .........................................................................
36
3.4
Polypropylene Process SPHERIPOL Process (Loop Reactor).............................................
39
3.5
Spheripol Process Copolymer Reactors and Monomer Recovery........................................
40
3.6
BORSTAR Bulk/Gas Phase Polypropylene Process Feed and Polymerization ....................
42
3.7
BORSTAR Bulk/Gas Phase In-Situ TPO Process and Recovery .........................................
43
3.8
Generic Gas Phase Block Diagram In-situ TPO Production Process ....................................
45
3.9
CATALLOY Polymerization Process ......................................................................................
47
3.10 Schematic of Banbury® Mixer.................................................................................................
48
3.11 Cross Section of a Typical Single-Screw Extruder.................................................................
49
3.12 Schematic of a Continuous Processor ..................................................................................
50
3.13 Twin-Screw Geometry of a Co-Rotating System ...................................................................
51
3.14 Metallocene Solution POE Process .......................................................................................
54
3.15 Metallocene Solution POE Process - Pelletizing...................................................................
55
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December 2014 Report Contents
4.1
Cost Comparison of In-Situ TPOs, Compounded TPOs, TPVs, and POEs ..........................
88
4.2
Cost Comparison of Compounded TPO, In-Situ TPO, TPV, Polyolefin Elastomer ...............
88
4.3
Cost Comparison of Compounded TPO, TPV, POE, PBE ....................................................
89
4.4
Effect of Propylene Base Resin Cost on In-situ TPO Economics ..........................................
90
4.5
Effect of Polypropylene Price on Compounded TPO and TPV Economics ...........................
91
4.6
Effect of Ethylene Price on POE Economics..........................................................................
92
4.7
Effect of Propylene Price on POE Economics .......................................................................
93
5.1
Global In-Situ TPO Demand by End-Use...............................................................................
98
5.2
Global TPV Demand by End-Use ..........................................................................................
105
5.3
Global POE Demand by End-Use Market, 2014 ....................................................................
109
5.4
OBC’s Compression Set ........................................................................................................
112
5.5
OBC’s Elastic Recovery Performance ...................................................................................
112
5.6
OBC’s Density vs. Melting Point.............................................................................................
113
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December 2014 Report Contents
Table
1.1
Page
Comparative Cost of Production Estimate Summary for Thermoplastic Polyolefin Elastomers..............................................................................................................................
4
1.2
Regional Demand for In-Situ TPOs ........................................................................................
5
1.3
Regional Demand for Compounded TPOs ............................................................................
5
1.4
Regional Demand for TPVs....................................................................................................
6
1.5
Regional Demand for POEs ...................................................................................................
7
2.1
Compounding as a Separate Step in the Value Chain ..........................................................
11
2.2
In-situ TPO Licensors and Major Producers ..........................................................................
16
2.3
Major TPV Technology Holders and Licensors ......................................................................
17
2.4
Polyolefin Elastomers Technology Holders and Licensors ....................................................
17
2.5
Olefin Block Copolymers Licensors and Producers ...............................................................
18
2.6
Strategic/Business Considerations for In-situ TPO ................................................................
18
2.7
Strategic/Business Considerations for Compounded TPO ....................................................
19
2.8
Strategic/Business Considerations for TPV ...........................................................................
19
2.9
Strategic/Business Considerations for POE...........................................................................
19
2.10 Strategic Business Considerations for Olefin Block Copolymers...........................................
20
2.11 Hard Polymer/Elastomer Blend Combinations .......................................................................
24
2.12 Properties of Thermoplastic Vulcanizates ..............................................................................
25
2.13 Physical Properties of Selected Propylene Containing Thermoplastics ................................
26
2.14 Physical Properties of TPOs ..................................................................................................
27
2.15 Property Characteristics and Property Ranges for Elastomers and Polypropylene ..............
27
3.1
Recent Activity in the Propylene Based Elastomers ..............................................................
57
3.2
Patent Summary OBC ............................................................................................................
60
4.1
Prices Used in Cost of Production Estimates.........................................................................
64
4.2
USGC Compounded TPO and TPV 92mm Twin Screw Capital Cost Estimate ....................
66
4.3
USGC In-Situ TPO Production Capital Cost Estimates .........................................................
66
4.4
USGC Polyolefin Elastomer Production Capital Cost Estimates ...........................................
67
4.5
Cost of Production Estimate for: In-Situ TPO, USGC Process: SPHERIPOL – Bulk, Gas Phase .....................................................................................................................
68
Cost of Production Estimate for: In-Situ TPO, Middle East Process: SPHERIPOL – Bulk, Gas Phase .....................................................................................................................
69
Cost of Production Estimate for: In-Situ TPO, South East Asia Process: SPHERIPOL – Bulk, Gas Phase .....................................................................................................................
70
Cost of Production Estimate for: In-Situ TPO, USGC Process: Generic Gas Phase ............
71
4.6 4.7 4.8
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4.9
December 2014 Report Contents
Cost of Production Estimate for: In-Situ TPO, Middle East Process: Generic Gas Phase ....
72
4.10 Cost of Production Estimate for: In-Situ TPO, South East Asia Process: Generic Gas Phase ..............................................................................................................................
73
4.11 Cost of Production Estimate for: Compounded TPO, USGC Process: High Torque 92mm Twin Screw ..................................................................................................................
75
4.12 Cost of Production Estimate for: Compounded TPO, Middle East Process: High Torque 92mm Twin Screw ..................................................................................................................
76
4.13 Cost of Production Estimate for: Compounded TPO, South East Asia Process: High Torque 92mm Twin Screw .....................................................................................................
77
4.14 Cost of Production Estimate for: TPV, USGC Process: High Torque 92mm Twin Screw .....
78
4.15 Cost of Production Estimate for: TPV, Middle East Process: High Torque 92mm Twin Screw .............................................................................................................................
79
4.16 Cost of Production Estimate for: TPV, South East Asia Process: High Torque 92mm Twin Screw .............................................................................................................................
80
4.17 Cost of Production Estimate for: POE, USGC Process: Metallocene Solution ......................
82
4.18 Cost of Production Estimate for: POE, Middle East Process: Metallocene Solution .............
83
4.19 Cost of Production Estimate for: POE, South East Asia Process: Metallocene Solution ......
84
4.20 Cost of Production Estimate for: Propylene Based Elastomer, USGC (Hypothetical) Process: Metallocene Solution ...............................................................................................
85
4.21 Cost of Production Estimate for: Propylene Based Elastomers, Middle East (Hypothetical) Process: Metallocene Solution........................................................................
86
4.22 Cost of Production Estimate for: Propylene Based Elastomers, South East Asia (Hypothetical) Process: Metallocene Solution........................................................................
87
5.1
In-Situ TPO Grades and Applications ....................................................................................
99
5.2
Compounded TPO Applications .............................................................................................
101
5.3
Major Compounded TPO Producers ......................................................................................
102
5.4
Intermaterial Summary ...........................................................................................................
103
5.5
Major TPV Products and Applications ....................................................................................
106
5.6
POE Properties and Effect on Compounded TPO Performance ...........................................
108
5.7
Ethylene based Polyolefin Elastomers Grades and Applications ..........................................
109
5.8
Propylene Based Elastomer Grades and Applications ..........................................................
111
5.9
Olefin Block Copolymer Grades and Applications .................................................................
114
6.1
Regional Demand for In-Situ TPOs ........................................................................................
115
6.2
Major Global In-Situ TPO Producers ......................................................................................
116
6.3
Regional Demand for Compounded TPOs ............................................................................
117
6.4
Compounded TPO Producers ................................................................................................
118
6.5
Regional Demand for TPVs....................................................................................................
120
6.6
TPV Producers .......................................................................................................................
121
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December 2014 Report Contents
6.7
Regional Demand for POEs ...................................................................................................
123
6.8
Global POE Capacity .............................................................................................................
125
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December 2014 Report Contents
Nexant Thinking™ PERP PROGRAM
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The NexantThinking™ Process Evaluation/Research Planning (PERP) program is recognized globally as the industry standard source for information relevant to the chemical process and refining industries. PERP reports are available as a subscription program or on a single report basis. Contact Details: New York: Marcos Nogueira Cesar, Vice President, Global Products, E&CA: Nexant Thinking™ Phone: + 1-914-609-0324, e-mail:
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[email protected] Nexant, Inc. (www.nexant.com) is a leading management consultancy to the global energy, chemical, and related industries. For over 38 years, Nexant has helped clients increase business value through assistance in all aspects of business strategy, including business intelligence, project feasibility and implementation, operational improvement, portfolio planning, and growth through M&A activities. Nexant has its main offices in San Francisco (California), White Plains (New York), and London (UK), and satellite offices worldwide. Copyright © by Nexant Inc. 2014. All Rights Reserved.
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