Growing insulation markets –

energy efficiency for a sustainable world

Adidas take athletic performanceto the max with TPU film

Latest news on REACH

R E P O R T I N G T H E W O R L D O F P O LY U R E T H A N E S F O R O U R C U S T O M E R S

September 2008

www.huntsman.com/pu

Huntsman has opened a newAsia-Pacific Technology Centre(ATC) in Shanghai’s MinhangDevelopment Zone, givingregional customers direct accessto a world-class technologyinnovation resource. The newCentre will initially accommodateresearch and technicalexperts from Huntsman’sPolyurethanes and PerformanceProducts divisions, with thenumber of specialists expected toexpand rapidly over the next fewyears. The ATC team will draw onthe expertise of its counterpartsat Huntsman’s Technical

Development Centres in Europeand the USA, to speed theintroduction of new technologyplatforms into the Asia PacificChinese market.The company’s team of regionalspecialists will provide extensivedevelopmental and testingsupport to customers, providingcustom-made solutions for AsiaPacific markets on a quick andefficient basis.

Further details about the Centreand the September 2nd officialinauguration will be covered inthe next issue of PU Review.

Huntsman and Lignol Energy Corporation ofCanada have signed a memorandum ofunderstanding to jointly develop new polyurethanesapplications using bio-renewable high purity ligninHP-LTM.

Lignin, an agricultural by-product, is one of thethree key constituents of wood, together withcellulose and hemi-cellulose. It is a highlyfunctionalized and cross-linked aromatic materialwith potential to enhance performance in a widevariety of polyurethane applications.

“This agreement shows Huntsman’s continuingcommitment to investigate the use of bio-renewable components – both for feedstock andfor product applications”, says Niek Van Wiechen,Huntsman Polyurethanes Global Director forCore Science.

2

Innovation: thelifeblood ofour businessTony Hankins, President,Huntsman Polyurethanes

Welcome to the first issue of our new, yetlong established, customer newsletter.Some will remember that we published

PU Review through the 1980s and 90s, but discontinued thenewsletter in 2004 because of the growth in popularity of onlinemedia. Since then, we’ve received many enquiries from ouroriginal readership base to relaunch the publication, so here’sour response, “back by popular demand” you could say.The aim is the same: to give existing and potential customers,industry groups and academic bodies, the media and otherswho are interested in the world of polyurethanes, a flavourof the many new developments going on in HuntsmanPolyurethanes, with a particular focus on technology innovation– the lifeblood of our Business. You’ll see as you read thestories in this issue that much of that innovation has a strongenvironmental driver and the main feature focuses on insulation– a key contributor to improved energy efficiency. There’s nodoubt that these are exciting times for the Polyurethanesindustry and I trust that the newsletter reflects this and hope itstimulates new ideas for you.

PolyureaassociationlaunchedHuntsman has played a leading role in the creation ofthe Polyurea Development Association Europe (PDAEurope), a new industry body set up to managepolyurea issues related to standards, EH&Seducation and REACH.

Marc Broekaert of Huntsman’s BusinessDevelopment – Coatings Europe group has beenelected first President of PDA Europe. He comments,“Creating a professional industry associationcommitted solely to the needs of European polyureaformulators and users meets a long-standingrequirement in this fast growing market.”

The association will have close working links withits sister-organization, PDA Americas (founded in1999). PDA Europe’s next conference will be heldNovember 18-20 in Vienna.

PUbriefing September 2008

www.pda-europe.org

New applications for biorenewable lignin

New Asia-Pacific TechnologyCentre opened

Chinese market response has been extremely positive to the introduction of MDI-based MDF(medium-density fiberboard) panels for furniture-making by Huntsman and panel maker DongyingZhenge Wood Industry Co Limited.

Most MDF panels in China are currently bonded with formaldehyde-based resins. MDI offersmany extra benefits, such as reduced formaldehyde emissions and superior physical properties,such as higher internal bonding strength and lower thickness swelling.

Dongying Zhenge launched the new panels at the last China Wood fair in Beijing. The companyis now working hard to meet growing market demand for these top quality panels.

www.huntsman.com/pu 3

Low-VOC steering wheeldeveloped for Perodua carsHuntsman, working with Taiwan-based component supplier GSK, has achievedcommercialization of a new, low-VOC (volatile organic compound) polyurethane steeringwheel for Malaysian car manufacturer Perodua.

Wee Yoong Lee, Business Development Manager for Automotive in Asia, said: “We aredelighted to have displaced an important MDI competitor in this field. Further promising trialswill likely soon lead to new sales at other car companies in Malaysia and Thailand.”

Perodua, which is Malaysia’s second largest car company (250,000 vehicles per year), wasfounded in 1994 as part of a joint venture partnership with Daihatsu and Mitsui of Japan.Perodua cars are sold in more than 10 countries outside Malaysia, including the UK. Its MYVImodel has won several Asian Car of the Year awards.

Collaboration to introduce MDI-based MDF panels in China

Environmentally friendly floor coatingsTough, easy to apply and flexible

Huntsman Polyurethanes with its MDI technologyand Alberdingk Boley with its environmentally-friendly polyols have joined forces to providecustomers with new coatings solutions forindustrial flooring.

In addition to environmental friendliness –Alberdingk Boley’s polyols are based on renewablecastor oil and therefore 100% VOC-free – thesesolutions include increased toughness, ease ofapplication and flexibility.

The Huntsman and Alberdingk Boley solutionsimpart toughness and longevity by providingelasticity and high performance impact andabrasion resistance properties; they provide lowviscosity and advanced self-leveling properties to

make application quick and easy; and coatingcuring period and pot life can be shortened orlengthened to suit type and complexity ofapplication.

The two companies offer customers flexibility inthat the products can also be tuned to providedifferent types of coating hardness. For example,soft for sporting halls where athletes absorb highimpacts, medium for shopping malls where abalance is needed between comfort and longevity,and hard for warehouses where durability is theprime requirement.

ace@huntsman.com

composite_wood@huntsman.com

PU Review: What has changed in the worldto spur the growth of building insulationin the last few years, and what has beenthe impact?

Nick Webster: One major change is thatinsulation growth is no longer driven byconstruction industry demand, but rather bythe energy markets. Two dynamics are atwork there – the increasing scarcity/cost ofenergy, and growing pressure to reduceglobal warming caused by the use of fossilfuels. Every key world region has reason tofocus on insulation. China and India, forexample, are having difficulties finding enoughenergy to fuel their growth. In Europe andNorth America, the issue is their extremedependency on imported energy. All thesefactors have led countries to put energy veryhigh on the political agenda. Several countriesand regional organizations such as theEuropean Union have already adopted

legislation on energy efficient buildings. What’smore, this legislation continues to grow everstricter, and will soon extend to areas likeEastern Europe and the developing world.National commitments to the 2020 KyotoProtocol will play a large role in future demandfor insulation, too.

PU Review: Why is so much focus beinggiven to improved insulation in constructionas a major part of the solution to the energyproblem? Shouldn’t focus also be given toother measures such as alternative sourcesof energy?

Nick Webster: The case for focusing onbuilding insulation is very strong. Half of ourenergy is used in buildings. Heating energydemand in existing buildings can be reducedby 30-50% through retro-fitting insulation –and in new buildings, it can be reduced by astaggering 90-95%! While it is true thatinsulation should not be looked on as a totalsolution, according to recent McKinseyreports, building insulation is the least-costoption for reducing CO2 emissions. All energymeasures can increase a country’s energysecurity – but a focus on building insulationalso tends to drive economic growth bycreating many new jobs in construction,typically a large sector of economic activity.

PU Review: Has growth in insulation beendriven by factors other than construction?

Nick Webster: Yes, there are several othertrends at work. First, the growth in urbanpopulations means that huge investments

With oil prices at record levels and greenhouse gases threatening to

destroy the planet, the opportunities for energy-saving insulation are

immense. PU Review spoke to Nick Webster, Vice President Europe for

Huntsman’s Polyurethanes Division (and responsible for the Insulation

market at division leadership team level), to obtain his perspective on

why rigid polyurethane insulation foam in particular is making and will

continue to make such large contributions to sustainability.

Growing insulation markets –energy efficiency for a sustainable world

To ensure energy savings andcomfort the ceilings and wallsof the competitors’ recreationrooms in the Beijing ‘Bird’s Nest’Olympic stadium (locatedunderneath the spectatorstands) are coated with a layerof Huntsman MDI-basedpolyurethane spray foam.

4

Pho

tocr

edit:

Ted

Kin

sman

/Sci

ence

Pho

toLi

brar

y

must be made in storage, transportation andprocessing of perishable foods undercontrolled temperature conditions. Thisincreased demand for cold storage requiresinsulation. Second, increased energy demandrequires substantial investment in the supplyinfrastructure – via more pipelines or liquidnatural/propane gas vessels, both of whichrequire extensive insulation. Finally, thegrowing middle classes (India, for example,already has a middle class of 200 million!)continue to want increased comforts,including more home heating and cooling.That, in turn, increases energy bills and thedemand for insulation. This is true not only innew houses but especially in the huge homerenovation area.

PU Review: How do polyurethanescompare against competitor products inthe insulation market?

Nick Webster: Among the main optionsavailable today – mineral fiber, polystyreneand polyurethane – polyurethane offers themost efficient cost/performance solution.Polyurethane really comes into its own whenanything more than the most basic insulationperformance is required. This creates anexcellent outlook for polyurethanes, not onlybecause the overall insulation market isgrowing but because the demand for highefficiency insulation is weakening the positionof non-polyurethane competitors.Polyurethane today only has about 8% of theEuropean insulation market. The EUrepresents a huge market opportunity – andthat’s part of the reason why many of ourcustomers are achieving high growth rates.Stricter legislation and increased homerenovation will continue to play a critical partin this growth.

PU Review: What are the main challengesyou face to ensure that polyurethanecontinues to grow in the insulation market?

Nick Webster: In construction, the largestsection, our main challenges includecontinuing to advocate for effective energy-saving legislation; implementing expandedawareness campaigns on the benefits ofpolyurethane insulation in buildings; andintroducing new technologies, such asincreased fire resistance, to open up everlarger markets.

PU Review: Can you give examples of howand where you are working on advocacyand public education for polyurethanebuilding insulation?

Nick Webster: In China, we are working notonly directly with the government and buildinginstitutes but also with building contractors,who play an important role in the developmentand design of insulation systems, as well as inthe final construction. In North America, manyof our representatives contribute actively to thework of key trade associations such as suchas the Center for the Polyurethanes Industry(CPI), the Polyisocyanurate InsulationManufacturers Association (PIMA) and SprayPolyurethane Foam Alliance (SPFA). In Europe,currently our largest market, we are keymembers not only of European Union-levelorganizations such as the EuropeanDiisocyanate and Polyol Producers Association(ISOPA) and the Federation of European RigidPolyurethane Foam Associations (BING) –but we are also founding members of nationalorganizations such as IVPU, the Germanindustry association for rigid foam producers.The activities of these associations can bemeasured. For example the use ofpolyurethane foam for insulating flat roofs inGermany has grown by around 150% in thethree years since the IVPU was created!

PU Review: Finally, how are you organizedinternally to best leverage the skills andexperience of your people, in addressingthe polyurethanes insulation market acrossthe globe?

Nick Webster: A couple of years ago wecreated a global group within the companycalled the Insulation Advanced GrowthPlatform (IAGP), to manage and coordinate thecompany’s efforts to grow the market forpolyurethanes insulation. The Chairman of theTeam is Rob Helwick, Director AmericasRegion Rigid Systems. Other members areSteve Hubrecht Commercial Director RigidsEurope; Su Bingli, Commercial Director ChinaInsulation; and James Barlow, PerformanceDirector Europe. The IAGP was created as ameans to collaborate between our worldregions, to create insulation growth over andabove what would naturally have beenachieved. The team is operating verysuccessfully.

Feature

“The case for focusing on building

insulation is very strong. Half of our

energy is used in buildings.”

From top:industrial cold storage,new home construction andcommercial flat roofing

The external walls of the newStandard Chartered building inShanghai were recently sprayedwith a two centimeter-thickinsulating layer of HuntsmanMDI-based polyurethane foamso as to ensure significantenergy savings.

www.huntsman.com/pu 5

www.huntsman.com/pu

Adidas AG, a global leader in the sportinggoods industry, has developed a pioneeringnew body-suit designed to maximise anathlete’s performance, using TPU technologyfrom Huntsman Polyurethanes.

TECHFIT POWERWEB® which ismanufactured by US extrusion specialistsBemis, was developed to harness the intrinsicpower in the human body and improve anathlete’s performance. The body-suit is madefrom an elastic base fabric with a specialtwo-layer TPU film coating. This uniquecombination provides excellent directionalstretch and energy return to support athletes’movements, maximising the use of energyproduced by the body during exercise.

The suit’s two-layer TPU film consists of twobespoke grades of Huntsman’s IROGRAN®

TPU. The top layer was selected for itsexcellent elasticity, very low tensile set andhigh wear resistance. The very thin bottom

layer was chosen for its exceptional adhesiveproperties, ensuring the suit has excellentwashability and dry clean resistancethroughout the garment’s lifetime.

Suits amplify muscle movements

Dr. Berthold Krabbe, team leader apparel ofthe Adidas Innovation Team (AIT)*, said: “Thesuit provides dynamic support by containingand amplifying muscle movements and linkingkey joint and energy systems together.Following extensive research into thebiomechanics of top sprinters, footballplayers, and other athletes, and the effect ofmovement on muscle compression in keyareas, we developed this new technologybased on Huntsman’s IROGRAN® TPU.Research and testing done by independentuniversities like the Human Performance Labof the University of Calgary (Alberta/Canada)showed a performance increase for sprintingspeed (1,1%) jumping (4%) and endurance(0,8%). Additionally, very positive feedbackfrom top athletes and leading experts hadbeen received. The first prototype of the suitwas used by Kim Collins when he became100m World Champion; today top athleteslike Jeremy Wariner and Tyson Gay, Kaka andMichael Ballack, Dan Carter and Reggie Bushperform in these suits.”

The technology works by wrapping bandsaround key areas of the body--for instance,just above the knee. This harnesses thepower of the muscle and links it through theback of the thigh to the abdominal muscularsystem – the real power centre of the body.

Optimised elasticity is key

Berthold Krabbe explained: “The crucialbenefit of TPU is its optimised elasticity; oncestretched, it always returns. This means thekinetic energy of the athlete’s movements isconstantly stored and released through theelastic behaviour of the TPU. As a resultathletes have increased joint power, better

posture, improved feedback for moreaccurate movement and they can alsoexperience faster recovery times due toincreased blood circulation.”

The new technology has significant benefitsfor manufacturers as well as end-users.Existing products can require multiple seamsto join the various sections, which can belabour intensive and relatively complicated.The new two-layer TPU film can easily belaser cut into any shape and applied to theLYCRA® fabric by simple heat pressing,making the manufacturing process far moreefficient and cost-effective. The end-user alsobenefits from increased wear comfort due tothe reduced number of seams.

Huntsman’s broad TPU technology platform

Berthold Krabbe continued: “Huntsman’s TPUexpertise was key to the success of thisproject. Huntsman Polyurethanes has one ofthe widest technology platforms in TPU, sothe team could offer just the right materials.Their contacts were also vital, as they veryquickly put us in touch with Bemis for co-extrusion of the TPU.”

Dr. Krabbe concluded: “In today’s sportingarena, the difference between first andsecond can be just milliseconds. Although wecannot make athletes better than they are,with this technology we can help optimisetheir performance, potentially giving them thatwinning edge.”

Adidas take athleticperformance to themax with TPU filmElastic TPU stores and releases athletes’ energy

6

ace@huntsman.com

PU Review: How is Huntsman doing incomplying with REACH?

Graham Knaggs: Huntsman recognized themagnitude of this issue a long time ago andassembled many teams of highly dedicatedprofessionals to oversee compliance andimplementation, as well as to advisecustomers and suppliers. As Director of theREACH project for Huntsman since 1 June2008, I am very pleased to see that thecompany is very well prepared. Indeed wehave just set a number of internal deadlinesaimed at completing our pre-registrationactivity a couple of months before the officialyear-end deadline.

PU Review: Can you please explainpre-registration?

Graham Knaggs: We have just entered thefirst critical period of REACH – called pre-registration – which runs until 1 Decemberthis year. During pre-registration, we have toidentify all the chemical substances we importor manufacture within the EU (as do our EUcustomers and suppliers). This has involvedsignificant resources to collect manufacturing,sales and inventory data for the last threeyears. We then had to identify the rawmaterials used here to create our final list – ahuge task. We also have to ensure that ourraw material suppliers do the same.

PU Review: Presumably pre-registrationis followed by registration?

Graham Knaggs: Pre-registration is just thestart of the full REACH process which will rununtil May 2018. Full registration forsubstances comes next, and this involves theassembling or creation of analytical andtoxicological data – a key task for Huntsmanscientists. During this activity we will joinvarious Substance Information ExchangeForums (SIEFs) with other companies who

manufacture or import the same or similarsubstances, to share data and agree on anyadditional work required.

PU Review: Where do our customersfit in?

Graham Knaggs: Our EU customers alsohave obligations and responsibilities within theREACH legislation. At a minimum, they haveto advise their raw material suppliers –including Huntsman – regarding the end-useof their products which use our substances.Suppliers then have to provide significantlyenhanced advice and information on the safehandling and use of each substance for thatapplication. Our non-EU customers maybelieve that they are not affected by thelegislation, but if they have agents ordistributors who are importing into the EUthen they will also be affected – and shouldcheck.

PU Review: What is the main challengegoing forward?

Graham Knaggs: We have made anexcellent start with our pre-registrationactivities, but we will have to change geartowards the end of the year to ensure that weare prepared for the ten-year marathon ofdata sharing and full registration. AtHuntsman we treat REACH as businesscritical in the sense that it affects our licenseto operate. We will therefore dedicate all theenergy and resource needed to ensurecomplete success.

Key dates

December 1, 2008 Pre-registration completed

December 1, 2010 Registration completed> 1,000 tonnes/year

June 1, 2013 Registration completed100 –1,000 tonnes/year

June 1, 2018 Registration completed1–100 tonnes/year

“We will dedicate all the

energy and resource needed

to ensure complete success.”

Huntsman on track with REACHThe new EU REACH legislation (Registration, Evaluation,Authorization and Restriction of Chemicals) affects allmanufacturers, producers of articles, importers anddownstream users of chemical substances. Any companynot complying with REACH in the future will not be permittedto manufacture or import chemical substances into theEuropean Union (EU).

Over the last few years Huntsman has been activelypreparing for REACH. On June 1 Graham Knaggs wasappointed Director REACH for the company and PU Reviewinterviewed him on the project’s status:

www.huntsman.com/pu 7

www.huntsman.com/reach

TPU improvescable productionand maintenance

New phthalate-free, soft TPUslaunched in Americas

Bockmühl Kabel, a leading manufacturer ofniche, high performance sensoric andautomotive cabling solutions, is realisingsignificant production efficiencies duringmanufacture of its range thanks to A85P4380– a special grade of thermoplasticpolyurethane (TPU) from Huntsman.

Huntsman’s A85P4380 TPU ensuresreduced start-up wastage and providesexcellent dimensional stability. This enablesBockmühl Kabel to run its production lines atmaximum speed without distorting the cable,thereby increasing manufacturing output,minimising costs and ensuring increased coilcapacity.

Another unique feature of Bockmühl Kabel’scabling solutions is the non-adhesive, mattfinish created by Huntsman’s TPU; as a result,cables move freely and end-users benefitfrom much simpler, and potentially more costeffective, maintenance.

Horst Schmidt, cable construction managerfor Bockmühl Kabel, said: “As a nichemanufacturer it is crucial that we can quicklyand efficiently swap between production runs.Huntsman Polyurethanes A85P4380 TPUoffers fantastic flexibility and ease of use”.

Huntsman Polyurethanes has introduced two new grades of patented, unplasticized,soft thermoplastic polyurethanes (TPUs). IROGRAN® A60E4902 polyester grade (Shore55A hardness) and IROGRAN® A65P4910 polyether grade (Shore 65A) achieve verysoft Shore hardnesses through the chemistry of their formulations rather than by theaddition of plasticizers or other modifiers. This makes them ideal for PVC replacementin extrusion, molding or film applications where the presence of phthalates or otherplasticizers may be an issue.

Recent and forthcoming technical presentations

UTECH Asia conference, Shanghai (September 3 – 5, 2008)

KRYSTALFLEX® optical aliphatic TPU films for bullet-resistant glass lamination -Henry Yao.

Automotive: A new generation of MDI slab foam technology insulation – Pedro Chenand Walter Wu.

Spray polyurethane foam for building insulation in China – Eugene Yu.

Two-pack low VOC industrial floor coating based on castor oil and aromaticpolyisocyanates – Dai Yueping.

CPI conference, San Antonio (September 29 –October 1, 2008)

New developments in polyisocyanurate laminate foam formulation and processing, bySachchida N. Singh, Sheila Dubs and Jerry Pilgrim.

Rheology study in polyurethane rigid foams, by Lifeng Wu, Janine Van Gemert,Rafael E. Camargo.

Adhesives and Sealants conference Council Fall Expo, Baltimore(October 12 –14, 2008)

Cross linking/Catalyzing Technology for Latex or Acrylic Emulsions, by Katie Skok.

1st China international conference on Wall Thermal Insulation Materials andthe Application Technologies, Hangzhou, China (October 15 –17)

Use of polyurethane insulation in Europe and the USA and relevance of the buildingcodes, by Diane Daems and Chee Cheung Foo.

UTECH Europe conference, Maastricht (March 31–April 2, 2009)

Recent developments in low emission catalysis for flexible foams –Ron Herrington and Gabor Felber.

New MDI-based microcellular polyurethane elastomer technology for high-performance automotive suspension applications – Hugo Verbeke and Oliver Kuisle

INSPIRE® new adhesive-free PIR technology for sandwich panels – Alexander Abati,Domenico Stragapede, Kristof Dedecker.

Rheo-kinetics and fluid dynamics modeling for the pultrusion of PU composites –Mark Brennan, Michael Connolly, Roel Van Boxel.

An analysis of the PU industry’s contributions to sustainable development –Shpresa Kotaji.

Combustibility: beyond fire performance considerations – Diane Daems.

New prepolymers for polurea with increased resistance – Geert Dries, Stijn Roekaertsand Thorsten Gurke.

While all the information and recommendations in this publication are to thebest of our knowledge, information and belief accurate at the date of publication,nothing herein is to be construed as a warranty, express or otherwise.

IROGRAN® and KRYSTALFLEX® are registered trademarks ofHuntsman LLC or an affiliate thereof in one or more, but not all, countries.

The tradenames below are registered trademarks of the following companiesor their affiliates in one or more, but not all countries: MYVI® (Perodua),TECHFIT POWERWEB® (Adidas) LYCRA® (Du Pont).

Copyright © 2008 Huntsman Corporation. All rights reserved.

Editor: Michael Scharf, michael_scharf@huntsman.comDesigned and produced by:Chris Pearson creative communications

ace@huntsman.com

ace@huntsman.com

www.huntsman.com/pu8