(For Tyre) Additives & Chemicals Technical Group 2

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DIC s s Metal-Carboxylates (For Tyre) Additives & Chemicals Technical Group 2 2011.08 1

Contents 1. What s DIC 2. Metal Carboxylates(verview) 3. Cobalt carboxylates for Tyre application 4. Raw materials 5. ur products 6. Dominant Position 7. Plant utline 8. IS Registration 2

What s DIC Profile DIC is one of Japan's most diversified chemical companies. DIC forms the core of the DIC Group, which includes approximately 300 subsidiaries and affiliates in Japan and more than 60 other countries around the world. The DIC Group s four business operations consist of graphic arts; polymers and related products; specialty plastics and compounds; and other, which includes building materials, pressure-sensitive adhesive materials and biochemicals. Through these operations, the Group supplies essential materials to abroad range of industrial users around the world. A leader in the global markets for printing inks, organic pigments and thermosetting resins, the DIC Group aims to further strengthen its international position while contributing to industry and society with innovative products and technologies.. 3

Extensive Global Network The DIC Group comprises 210 companies in 63 countries. (As of ctober 2009) DIC was one of the first Japanese printing ink manufacturers to establish a presence in other parts of Asia. In 1986, Sun Chemical Corp., a leading manufacturer of printing inks, joined the DIC Group. Since then, additional acquisition-including the Coates Group (the inks division of France s Totalfina S.A.) in 1999- have reinforced DIC s position as one of the world s preeminent fine chemicals companies. At present, DIC is focusing its expansion efforts on promising growth markets in Asia, notably the People s Republic of China (PRC), to strengthen core businesses, and is also establishing a presence in such emerging markets as Central and Eastern Europe, South America and the Middle East.. 4

Metal Carboxylates What is Metal-carboxylates rganic Carboxylic acid of Metal salt It has polarity part of metal-carboxyl group and nonpolarity part of the hydrocarbon group in its structure. The catalysis of the metal is applied, and it is used for various applications. The charge transfer Is the most important characteristic of Metal Carboxylates R C M C R 5

6 83 Bi 82 Pb 81 Tl 80 Hg 79 Au 78 Pt 77 Ir 76 s 75 Re 74 W 73 Ta 72 Hf 57-71 Ln 56 Ba 55 Cs 51 Sb 50 Sn 49 In 48 Cd 47 Ag 46 Pd 45 Rh 44 Ru 43 Tc 42 Mo 41 Nb 40 Zr 39 Y 38 Sr 37 Rb 33 As 32 Ge 31 Ga 30 Zn 29 Cu 28 Ni 27 Co 26 Fe 25 Mn 24 Cr 23 V 22 Ti 21 Sc 20 Ca 19 K 15 P 14 Si 13 Al 12 Mg 11 Na 7 N 6 C 5 B 4 Be 3 Li 5B 4B 3B 2B 1B 8 7A 6A 5A 4A 3A 2A 1A Metal Metal Carboxylates Carboxylates Various kind of Metal Carboxylates DIC Can provide various kind of Metal Carboxylates

Metal Carboxylates Metal carboxylates are widely used in various applications Steel cord-rubber adhesion promoters(for tire) Co Driers for paints and printing inks Co,Mn,Ba,Ca,Ce,Cu.Fe,Zn,Zr,Al,K Unsaturated polyester accelerator Co,Ca,K Urethane catalysts Ca,Zn,Bi Additives for lubricating oils and greases Zn Additives for fuel oil Ba,Cu,Mn,Ni,Fe Catalyst for organic reactions Co,Ni,Li Fungicides and wood preservatives Zn,Cu 7

Cobalt-Carboxylates Carboxylates for Tyre application 8

Mechanism of Co-carboxylates as adhesion promoter Cobalt carboxylates promote the adhesion between tyre rubber and brass plated steel cords. S S S S S S S S Rubber Cu Co Adhesion! Co Cu Cu Cu Cu Steel Cord Brass plating 9

Cobalt Carboxylates Common System Boron modified system R C Co C R RCH=Fatty acids R C Co Co B Co C R R C 10

Raw materials R' R (CH 2 )nch R 1 R R 2 CH (CH 2 )nch (1)C n H 2n+1 CH:Naphthenic acid(c8-c22) R 3 (2)C 9 H 19 CH:Neodecanoic acid No. Name Acid Value Formula 1 Naphthenic acid 180-240 C n H 2n-1 CH(C8-C22) 2 Neodecanoic acid 320 C 9 H 19 CH 3 Stearic acid 200 C 17 H 35 CH 4 Tall oil fatty acid 170-190 C 17 H 31 CH,etc An example CH CH (3)C 17 H 35 CH:Stearic acid (4)C 17 H 33 CH,ect.:Tall oil fatty acid 11

ur products Paste Pastille Block 12

ur products Common Products Fatty acids Co(%) Form Co-NAPHTHENATE 10% Naphthenic acid 10.0 Block Co-STEARATE Stearic acid 9.5 Pastille DICNATE 5000 Neodecanoic acid 14.0 Paste DICNATE TALLATE Tall-oil Fatty acid 8.0 Block DICNATE 7000 Neodecanoic acid, etc 20.5 Pastille Boron modified Products Fatty acids Co(%) Form DICNATE NBC-2 Neodecanoic acid 22.2 Block 13

ur products Typical properties Appearance Co(%) Softening point( ) Co-NAPHTHENATE 10% Purple Block 10.0 - Co-STEARATE Purple Pastille 9.5 80-90(m.p.) DICNATE 5000 Paste 14.0 - DICNATE TALLATE Block 8.0 40-50 DICNATE 7000 Purple Pastille 20.5 100-105 DICNATE NBC-2 Block 22.2 70-80 14

DIC s Dominant Position Quality Supply Lineup Price IS 9001,9002 High quality raw materials Supply Stability Natural, Synthetic Acid Co,Mn,Ca,Ce,Cu,Fe, Zn,Zr,K Internationally acceptable Environment Responsible Care IS14000 15

Plant outline Kashima Plant R&D Center (in Chiba plant) Zhongshan Plant 16

Plant outline DIC KASHIMA PLANT Location: Kashima coastal Industrial complex(japan) Established :1972 Products: All kind of metal carboxylates (Co,Mn,Zr,Zn,Ni, etc) 17

Plant outline DIC ZHNGSHAN PLANT Location: Zhongshan Torch Hi-tech industrial Development (P.R.China) Established :2003 Products: Cobalt carboxylates for tire applications 18

Plant outline (Plant in China) 1. Products - Cobalt Carboxylates for Tires 2. Background - Expand the Production Capacity - Supply Responsibility - Necessity of the Second Plant in China 3. Why China? - Expanding Asian Core - New Tire Plants in China,SE Asia&India - New Automobile Plants in China,SE Asia & India - Reduce the raw materials cost - Reduce the production cost 19

IS Registration Kashima Plant/Japan Zhongshan Plant/China 20

Market share of Metal carboxylate for Tyre application (Domestic & Worldwide) Domestic (in Japan) Worldwide DIC 55% DIC 27% 21

24 PRPDUCTS DICNATE NBC-2 MANBND 680C R C Co Chemical structure Co B Co C R R C Composition of Acid R=Neodecanoic acid Neodecanoic acid R = 2-Ethylhexanoic acid Propionic acid Acid(%) typical 2-Ethyl hexanoic acid - 28-30 Neodecanoic acid 76-77 28-30 Propionic acid - 8-10 Appearance Block(Solid) Pastille Cobalt content(%) 22.2 22.5 Boron content(%) 1.2 2.1-2.4 Insolubke matter in Heptane 0 8-9 thers(%) 8-10(Inorganic salt) 22