Vinyl India 2024

4th April 2024

Transformation of the
Global PVC & Additives Industry

Dr. Tobias Rosenthal

Chairman of the Advisory Board &
Owner in 3rd Generation

BAERLOCHER GROUP

Apr-24 | Baerlocher Group, Dr. T. Rosenthal | Vinyl India 2024

Thank You For Hosting This Industry Event!

■ The Baerlocher Group is a proud partner of

Vinyl India and has been associated with
ElitePlus since the very beginning (since 2011).

■ We express our sincere gratitude to Vinyl India

for hosting this major industry event.

■ In 2023, the Baerlocher Group celebrated its

200 years of existence and thanks the industry
for the privilege of serving them and society for
the past two centuries.

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Apr-24 | Baerlocher Group, Dr. T. Rosenthal | Vinyl India 2024

 The Age of Polymers
 Polymers have been growing
World’s Major Plastics Production around the world in all applications.
400

350  PVC CAGR of 3.9% is comparable

to major plastics consumed.
300 HDPE
Million Metric Tons

250 PET
Polymer CAGR (%)
HDPE 4.3
200 PP
PET 4.2

150 PP 4.0
LDPE, LLDPE
LDPE, LLDPE 4.0
100 PS
PS 3.8
PVC PVC 3.9
50
PUR PUR 3.9
ABS, ASA, SAN
0
ABS, ASA, SAN 3.9
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024*
* 2024 data is estimated
Source: Global Market Data

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Apr-24 | Baerlocher Group, Dr. T. Rosenthal | Vinyl India 2024

 PVC – A Global Snapshot

World PVC Demand : Region Wise World PVC Demand: Application Wise
Middle East, All Other,
Africa, 1.50%
4.00% Wire & Bottles , 9.00%
India Sub., 9.00% Cables, 1.00%
6.00%

Europe, 12.00%

Profiles, Pipes & Fittings

17.00% 48.00%

Asia, 56.50%
Films & Sheets,
19.00%
America, 17.00%

Global PVC Demand in 2023 is estimated to be 52 MMT >70% of PVC is used in long lasting (construction related) applications;
Pipe & Fittings make up nearly 50% of the total PVC demand

Source: Global Market Data

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Apr-24 | Baerlocher Group, Dr. T. Rosenthal | Vinyl India 2024

PVC – Further Growth Expected Globally

 PVC grew due to its superior properties and availability of

World PVC Demand: raw material (chlorine sink for growing fertilizer demand).
Present & Projection
80.00
 PVC demand growth is typically aligned with GDP growth.
Million Metric Tons

70.00
60.00  PVC demand outlook is strong in all applications due to
50.00
40.00
government infrastructure spending and building activities.
30.00
20.00  Pipes and profiles will continue to be among the top
10.00
0.00
application sectors.
*
 In Europe, PVC is still used in high quality applications due
Pipe & fittings - 5 % Profiles - 4 % Films & Sheet - 3 %
to superior properties.
Bottles - 1 % Wire & Cables - 3 % All other - 3.5 %
 Higer growth rates outside of Europe due to long-term
* 2024 onwards data is estimated
demand especially for infrastructure and construction.
The global PVC demand is projected to cross
 Economic tension in China and USA create further
60 MMT in next five years
opportunities for India`s market growth (+30% in 2023).
Source: Global Market Data
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Apr-24 | Baerlocher Group, Dr. T. Rosenthal | Vinyl India 2024

PVC – Unique Properties Make it the Construction Material of Choice

Water Mains Break Pumping Energy  PVC pipes exhibit superior stability and better jointing,
Rate US & Canada
resulting in reduced leakages.
Polymeric Alternative

 PVC pipes require lower pumping energy and have

PVC superior gravitation flow compared to other plastics.
Least Breackage
with PVC
 PVC windows exhibit lower CO2 and energy footprint
CO2 Emission
versus other traditional systems like wood and
for the Life Cycle aluminum.
PVC : Al : Wood
1.00 : 2.26 : 1.19
 PVC is often used for its durability, versatility, self-
extinguishing properties, chemical and oil resistance,
Energy mechanical stability, as well as ease of processing.
for the life cycle

PVC : Al : Wood
 Many properties of PVC are comparable to
1.00 : 2.15 : 1.15 engineering polymers.
Sources: Uni-bell reports
Life Cycle Study by Universitat Politecnica De Catalunya, Barcelona
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Apr-24 | Baerlocher Group, Dr. T. Rosenthal | Vinyl India 2024

PVC – The Stormy Nights of Previous Years

While PVC production has increased manyfold over the years, the
emissions of Dioxin and VCM have decreased

Dioxin Dioxin emissions have decreased by

43% since 2009

VCM

VCM emissions have been reduced PVC

by 84% since 1987 Landfill

Vinyl resin production has increased

by 99% since 1987

PVC represents 3.7% of all plastics

landfill and just 1% of the total
materials in the landfill
Source: www.vantagevinyl.com

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Apr-24 | Baerlocher Group, Dr. T. Rosenthal | Vinyl India 2024

PVC – Traditionally Under Attack

 PVC has been “under attack” by NGOs and
regulators for decades, especially in Europe.
 Demand for sustainability & circularity as well as
regulatory activities globally increase the pressure on
plastics.
 Governmental pressure on PVC is increasing:
- EU: ECHA report on PVC and its additives to
human health and the environment.
- UN: global plastic treaty & toxicity of polymers and
microplastics.
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 Collective action and voluntary commitments
can be successful in dealing with regulatory &
political pressure (voluntary phase-out of Pb in
EU and increasing recycling rates for PVC).
 Need for scientifically sound sustainability
frameworks applied equally to all materials to
create a level playing field.
 Tools like the ASF (Vinyl Plus) holistically
evaluate PVC and are applicable to other
substances for sustainability evaluation.
Source: Association websites

Apr-24 | Baerlocher Group, Dr. T. Rosenthal | Vinyl India 2024

PVC – The Material of Choice for the Circular Economy

 PVC is well-suited for mechanical recycling because  Challenges related to recycling and higher PCR
of pure post-consumer material streams. contents require design for circularity and additives.
Source : VinylPlus

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Apr-24 | Baerlocher Group, Dr. T. Rosenthal | Vinyl India 2024

 Getting Ready for the Circular Economy –
Global Conversion to Ca(Zn)-based Systems
 Additives define the properties of PVC.
 Total stabilizer consumption is growing with virgin PVC.
 Transition to Ca(Zn)-based systems to get rid of legacy
additives driven by voluntary commitment (EU) and
regulatory activity (e.g.: piping system in India).
 PVC stabilized with Pb has fallen from 20MMT to
<5MMT in seven years.
LMM, 8%  Since last Vinyl India, transition form Sn to CaZn in
Tin, 12%
South America, e.g. in injection moulding & pipes of all

Lead,
Calcium, diameters.
67%
13%
 Typically, market transitions occur quickly when
supported by the right partners.
Source : Industry Data

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Apr-24 | Baerlocher Group, Dr. T. Rosenthal | Vinyl India 2024

PVC Stabilization Trend in India

2016 2023
Ca, 8%
Tin, 9%
Ca, 34%
LMM, 7%

2016
Pb, 51%

Tin, 7.50%
Pb, 76%
LMM, 7.50%

81 KT of Stabilizer for 2.9 MMTA of PVC 116 KT of Stabilizer for 4.1 MMTA of PVC

■ Most of the potable water supply pipe manufacturers already shifted to Ca/Zn.
■ Some leading pipe manufacturers have already announced to become “Lead-free”.
■ Among other sectors, profiles are almost totally Ca/Zn stabilized.
Source : Industry Data
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Apr-24 | Baerlocher Group, Dr. T. Rosenthal | Vinyl India 2024

Examples of Initiatives on the Path to Sustainability – Resin Producers

INEOS Inovyn: Vestolit (Orbia):

New Ultra Low Offers resins
Carbon range derived from bio-
reduces carbon based feedstocks,
footprint of chlor- reducing CO2
alkali products by emissions by at
Vinnolit Wastelake:
up to 70%. least 50%.
GreenVin® bio-attributed
PVC reduces CO2
emissions by around 90%
compared to Shin-Etsu Group:
Hanwha has formulated a
has installed solar conventionally produced
plan to reduce
modules producing PVC. GHG emissions
1.8 MWh of energy (Scope 1 and
per year and
Scope 2) to net
reducing carbon
zero to achieve
emissions by 1,000
MT annually.
carbon neutrality
by 2050.

Source : Individual company websites

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Apr-24 | Baerlocher Group, Dr. T. Rosenthal | Vinyl India 2024

An Additives Producer’s Journey Towards Sustainability

 Carbon neutrality and sustainable use of additives are key to win the future.

 We implement a global sustainability roadmap at corporate level to commit

comprehensive resources to the optimization of water, waste & energy
consumption and other initiatives aimed at reducing our carbon footprint.

 We bring all our global knowledge to India to succeed and to be the leading and
preferred partner as a sustainable stabilizer producer.

 We invest in sustainability and capacity like the new site in DEWAS to be able to
supply the future growth in India with sustainable local solutions.

 Specific on our new site in DEWAS:

‒ Green Building Council Rating Certification (Platinum) & Certifications – Eco Vadis, IMS
‒ Measuring & mitigation of carbon emissions of project towards carbon neutrality
‒ Usage of biomass boiler reducing carbon emission by about 1800t CO2 e annually
‒ Investments around generating solar energy to save 800t CO2 e annually

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Apr-24 | Baerlocher Group, Dr. T. Rosenthal | Vinyl India 2024

Assessing Sustainability of Products and Production in an Automated
and Science-based Approach

Value Proposition Cost Regulatory Match Performance Sustainability

 Sustainability is a key driver for our business activities

Validation &
Market Needs
Communication

 Implementing a “digital twin” to provide valid information

Formulation & Digital Twin (Software)

 Product LCAs based on chemical industry standards Production

 Work with suppliers and customers to optimize the information Administration &
base, necessary for a sustainable value chain Supply Chain Data Governance &
Expertise

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Apr-24 | Baerlocher Group, Dr. T. Rosenthal | Vinyl India 2024

Calculation Trustworthy “Cradle To Gate” Product
Carbon Footprint is Only the First Step
Data-based support of footprint calculations

first focus lies on cradle to

gate data product level
Scope 3 “Cradle to Gate” on Product Level

Development Scenarios first focus lies on product CO2 footprint

Full Scale Lifecycle Assessment

Digital management of product-related environmental impact factors provides consistent & reliable data.

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Apr-24 | Baerlocher Group, Dr. T. Rosenthal | Vinyl India 2024

 Conclusion

 PVC has revolutionized industries and has stood the test of time as a versatile and durable material.

 PVC will play an important role in the future due to its unique properties and superior recyclability.

 Global demand for PVC is expected to grow, especially in India (infrastructure and construction).

 A science-based and unbiased comparison of PVC reveals its superior sustainability.

 As we embrace the circular economy, the LCA of PVC and its additives need to be consciously improved.

 Global transition to Ca/Zn-based additives is driven by voluntary commitments & regulations.

 Collective action by the industry has proven successful in dealing with regulatory & political pressure.

 Markets change quickly supported by global players and proven technologies.

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Apr-24 | Baerlocher Group, Dr. T. Rosenthal | Vinyl India 2024

 V ibrant
I nnings of
N onpareil
Y ears of a
L uminary

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Apr-24 | Baerlocher Group, Dr. T. Rosenthal | Vinyl India 2024

 THE BAERLOCHER GROUP
(HQ)

Freisinger Str. 1
85716 Unterschleissheim
Germany
Phone: +49 891 43730
Email: info@baerlocher.com

www. baerlocher.com

Apr-24 | Baerlocher Group, Dr. T. Rosenthal | Vinyl India 2024