Solvent Casting Thickness Downgauging Blown Films Overview Advantages of Blown Film Trends Calendering...

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1 INTRODUCTION... XX STUDY GOALS AND OBJECTIVES... XX REASONS FOR DOING THE STUDY... XX SCOPE AND FORMAT... XX METHODOLOGY... XXI RELATED BCC PUBLICATIONS... XXI BCC ONLINE SERVICES... XXI DISCLAIMER... XXII SUMMARY... XXIII SUMMARY TABLE NORTH AMERICAN MARKET FOR SYNTHETIC PAPER AND SPECIALTY PAPER ADDITIVES, THROUGH 2010 (MILLION LBS)... XXIII SUMMARY FIGURE NORTH AMERICAN MARKET FOR SYNTHETIC PAPER AND SPECIALTY PAPER ADDITIVES, (MILLION LBS)... XXIII SYNTHETIC PAPER... 1 HISTORY... 1 PRINTING... 1 APPLICATIONS OVERVIEW... 2 PROPERTIES... 2 ADVANTAGES... 3 MARKETS... 3 TECHNOLOGY OVERVIEW... 3 NEW GROWTH INCENTIVES... 4 POTENTIAL GROWTH DETERRENTS... 4 MAJOR PLAYERS... 5 BACKGROUND... 5 ARJOBEX... 5 PPG... 5 YUPO CORP OTHERS... 6 TECHNOLOGY DETAILS... 7 BACKGROUND... 7 TABLE 1 TECHNOLOGIES USED TO MANUFACTURE SYNTHETIC PAPER... 7 FILM/SHEET MATERIALS... 8 Background... 8 Properties... 8 Flexible Plastic Film Fabrication Technology... 8 Film Extrusion... 9 Background... 9 Some New Developments... 9 Coextrusion... 9 Primary Film Processing Methods Background Film Casting... 10

2 Solvent Casting Thickness Downgauging Blown Films Overview Advantages of Blown Film Trends Calendering Background Characteristics Polymer and Film Orientation Background Commercial Aspects Biaxial Orientation Background The Tenter Frame Tabular Orientation Process Corona Treatment Background Technology Effects on Polymers Multilayer Lamination and Coextrusion Background Lamination Background Processes Coextrusion Background Basic Structures Trends Optical Properties of Papers and Films Background Opacity Other Optical Properties Basic Technology TABLE 2 REFRACTIVE INDICES OF MAJOR SYNTHETIC PAPER FILLERS Film Thickness Units Background Thickness Units MICROPOROUS POLYMERS Background Microporous Films Overview Production Applications PRINTING PROCESSES AND PRINTING INKS... 24

3 BACKGROUND OVERVIEW PERFORMANCE REQUIREMENTS LITHOGRAPHIC PRINTING Background Advantages Limitations GRAVURE PRINTING Background Advantages and Disadvantages FLEXOGRAPHIC PRINTING Background Advantages and Disadvantages LETTERPRESS PRINTING Background Advantages and Disadvantages DIGITAL PRINTING Background Technology PRINTING ON PLASTICS Background Problem of Low Surface-energy of Plastic Substrates Background Coating Uses Sequential Extrusion Filler Use Solvent Use UV Coatings Inks Overview Drying of Printing Inks TABLE 3 PRINTING INK DRYING MECHANISMS Other Potential Problems and Solutions Examples of Specific Printing Instructions from a Major Synthetic Paper Producer SYNTHETIC PAPER ASPECTS OVERVIEW RESIN CHOICES WHITENESS, OPACITY AND PRINTABILITY FORMULATION TECHNIQUES COMMON FORMATS RESINS USED Background Polyethylenes Background... 35

4 General Properties High Density Polyethylene (HDPE) Background Applications Synthetic Paper Products Polypropylene Background Polypropylene Films Background Film Types Applications Biaxially-oriented Polypropylene Films (BOPP) Background Developments and Trends Printable BOPP Films Synthetic Paper Products Polystyrene Background Oriented Polystyrene Sheet (OPS) PVC Background Features and Applications Printable PVC Films Static Cling Vinyl Film Polyesters Background Properties General Applications Tapes and Labels Background Examples Background Melinex Kaladex Polyester Film and a Synthetic Paper Competitive Scenario Synthetic Paper Products SYNTHETIC PAPER ADDITIVES BACKGROUND CLAYS TITANIUM DIOXIDE CALCIUM CARBONATE TALC... 49

5 SILICAS OTHERS SUMMARY OF SYNTHETIC PAPER AND COMPETITIVE FILM SCENARIO TABLE 4 SYNTHETIC PAPER/COMPETITIVE FILM APPLICATIONS SYNTHETIC PAPER APPLICATIONS BACKGROUND GROWING APPLICATIONS RFID: AN INTRIGUING POTENTIAL APPLICATION LABELS AND TAGS Overview Background Resin Use Pressure-sensitive Products Background Key Players Recent Developments White, Opaque Printed Label Applications Face Stock Background Film Label Face Stock Requisite Properties TABLE 5 FILM LABEL FACE STOCK PHYSICAL CHARACTERISTICS In-mold Labeling Background Benefits Potential Market for Synthetic Paper Label Market Outlook Synthetic Paper Attributes for Labels and Tags Background Tag Overview Market Erosion Applications Impact of Synthetic Paper Film Producers Responses FLEXIBLE PACKAGING Background Market Overview Commodity Plastics Use Specialty Resin Use Flexible Plastic Packaging Types Overview of Synthetic Paper Packaging Applications CARDS Background Photo ID Cards Other Card Types... 67

6 Attributes of Teslin Cards A Special Case: Smart Cards Background Market Size MENUS MAPS AND CHARTS OTHER APPLICATIONS Overview A Few Specifics on Several Miscellaneous Applications PATENTS OVERVIEW EXAMPLES U.S. NO. 6,150,005: SYNTHETIC PAPER INTERNATIONAL PAPER CO. (APRIL 1997) U.S. NO. 6,171,443: RECYCLABLE POLYMERIC SYNTHETIC PAPER POLYWEAVE INTERNATIONAL (JANUARY 9, 2001) U.S. NO. 6,364,988: PROCESS FOR PRODUCING A 3-LAYER COEXTRUDED BIAXIALLY ORIENTED POLYPROPYLENE PAPER NAN YA PLASTICS (APRIL 2, 2002) U.S. NO. 6,407,017: AROMATIC POLYAMIDE FIBER SYNTHETIC PAPER SHEET TEIJIN LTD. (JUNE 18, 2002) U.S. NO. 6,773,034: BOOK AND METHOD FOR MAKING A BOOK MELCHER MEDIA (AUGUST 10, 2004) U.S. NO. 6,796,426: SLEEVES AND ALBUMS PAGES FOR FLAT ITEMS ULTRA PRO LP (OCTOBER 9, 2002) NEW SYNTHETIC PAPER PRODUCTS TRANSILWRAP YUPO CORP HOP-SYN PPG INDUSTRIES VALERON CHISSO CORP CONTRACT CONVERTING MARKETING BACKGROUND TABLE 6 COMPARISON OF ADVANTAGES, DISADVANTAGES AND SELECTED CHARACTERISTICS OF PPG, ARJOBEX AND YUPO SYNTHETIC PAPERS INCREASING ROLE OF CONVERTERS IN MARKETING OF SYNTHETIC PAPER PRICING TABLE 7 SELECTED TESLIN PRODUCTS AND PRICES... 79

7 SYNTHETIC PAPER MARKET ESTIMATE AND FORECAST OVERVIEW DIFFICULTIES IN DEFINING THE SYNTHETIC PAPER MARKET CONTRASTING SYNTHETIC PAPER THICKNESS WITH APPLICATIONS TABLE 8 CONTRASTING SYNTHETIC PAPER THICKNESSES WITH RECOMMENDED APPLICATIONS DEFINING SYNTHETIC PAPER MARKET PARAMETERS CLARITY AND OPAQUENESS ISSUES SYNTHETIC PAPER MARKET PARAMETERS DEFINED Overview Definitions Definitions (Continued) TABLE 9 SYNTHETIC PAPER APPLICATIONS AS CITED BY SYNTHETIC PAPER SUPPLIERS COMPARISON OF PET FILM APPLICATIONS TABLE 10 APPLICATIONS OF PET FILMS AS CITED BY PET FILM SUPPLIERS FIGURE 1 SYNTHETIC PAPER MARKET SCENARIO MARKET ESTIMATES AND FORECASTS TABLE 11 ESTIMATED NORTH AMERICAN SYNTHETIC PAPER CAPACITIES BY PRODUCERS, 2005 (MILLIONS LBS) TABLE 12 NORTH AMERICAN SYNTHETIC PAPER CAPACITY, PRODUCTION AND EXPORTS FOR YUPO, PPG AND ARJOBEX, 2005 (MILLION LBS) TABLE 13 NORTH AMERICAN SYNTHETIC PAPER NET PRODUCTION APPLICATION DISTRIBUTION FOR YUPO, PPG AND ARJOBEX, 2005 (MILLION LBS) TABLE 14 NORTH AMERICAN SYNTHETIC PAPER NET PRODUCTION APPLICATION SALES OF YUPO, PPG AND ARJOBEX, 2005 (MILLION LBS) TABLE 15 NORTH AMERICAN SYNTHETIC PAPER NET PRODUCTION AND IMPORT MARKET BY APPLICATION, 2004 (MILLIONS LBS, $ MILLIONS) TABLE 16 NORTH AMERICAN SYNTHETIC PAPER NET PRODUCTION AND IMPORT MARKET BY APPLICATION, 2005 (MILLION LBS, $ MILLION) TABLE 17 NORTH AMERICAN SYNTHETIC PAPER NET PRODUCTION AND IMPORT MARKET BY APPLICATION, 2010 (MILLION LBS, $ MILLION) TABLE 18 NORTH AMERICAN SYNTHETIC PAPER MARKET BY APPLICATION, THROUGH 2010 (MILLION LBS) SYNTHETIC PAPER MARKET COMPETITIVE PRODUCT OVERVIEW Background Fiber-based Paper TABLE 19 SYNTHETIC PAPER PENETRATION OF FIBER-BASED PAPER MARKETS, (MILLION LBS) Synthetic Paper Resin Substrates TABLE 20 NORTH AMERICAN SYNTHETIC PAPER MARKET BY RESIN, THROUGH 2010 (MILLION LBS) FIGURE 2 NORTH AMERICAN SYNTHETIC PAPER MARKET BY RESIN, (MILLION LBS) TABLE 21 MARKET PENETRATION OF SYNTHETIC PAPER RESINS BY TYPE IN PLASTIC FILM MARKETS, 2005 (MILLION LBS)... 92

8 REALISTIC ECONOMIC AND MARKET APPRAISAL BACKGROUND OVERVIEW TABLE 22 SYNTHETIC PAPER, COMPETITIVE FILM AND THEIR MARKETS PRICING DECISION VARIABLES WHEN CHOOSING BETWEEN SYNTHETIC PAPER, FIBER-BASED PAPER OR PLASTIC FILMS VIABILITY OF THE SYNTHETIC PAPER MARKET MARKET PENETRATION CONSIDERATIONS MARKETING EFFORTS ARE ESSENTIAL FUTURE SCENARIO TABLE 23 QUALITATIVE APPRAISAL OF SYNTHETIC PAPER PENETRATION OF SELECTED MAJOR APPLICATIONS STANDARD TEST METHODS TABLE 24 STANDARD TESTS APPLICABLE TO SYNTHETIC PAPER GOVERNMENT PAPER SPECIFICATION STANDARDS GOVERNMENT PAPER SPECIFICATION (CONTINUED) INDUSTRY STRUCTURE BACKGROUND TABLE 25 SELECTED KEY SYNTHETIC PAPER PRODUCTS AND PLAYERS OVERVIEW INTEGRATED FILM FABRICATORS VERTICAL INTEGRATION HORIZONTAL INTEGRATION NONINTEGRATED FILM FABRICATORS CONVERTER/DISTRIBUTOR FIRMS MARKETING Background PPG s Position Changing Scenario of Printing on Synthetic Paper Yupo Arjobex Nan Ya Plastics Big Three vs. the Converters SPECIALTY PAPER ADDITIVES PAPER INDUSTRY OVERVIEW TABLE 26 U.S. PAPER AND PAPERBOARD PRODUCTION BY TYPES, (THOUSAND TONS) ENVIRONMENTAL ISSUES PRODUCTS BRIEF OVERVIEW OF PAPER PRODUCTION Stock Preparation Papermaking

9 Converting PAPER TYPES Newsprint Printing and Writing Papers Tissue and Wadding Packaging and Industrial Papers PAPERBOARD Overview Containerboard Folding Boxboard Food Service Boxboard Set-up Boxboard Fiber, Composite Cans, Drums and Other Products Building Paper and Board ADDITIVES BACKGROUND CHEMICALS AND POLYMERS USED TO MAKE SPECIALTY PAPER ADDITIVES TABLE 27 CHEMICALS AND POLYMERS USED IN PROCESS AIDS TABLE 28 CHEMICALS AND POLYMERS USED IN FUNCTIONAL AIDS INDUSTRY SCENARIO TECHNICAL DETAILS PAPER ADDITIVE CLASSIFICATIONS CHEMICALS AND POLYMERS INVOLVED PROCESS AND FORMATION AIDS TABLE 29 SPECIALTY PAPER ADDITIVES: PROCESS AIDS TABLE 30 SPECIALTY PAPER ADDITIVES: FORMATION AIDS SIZING Background and Technology The Spectrum of Paper Sizing Chemicals and Materials TABLE 31 PAPER SIZING ADDITIVES Alkaline Sizing TABLE 32 ACID AND ALKALINE SIZING CONDITIONS AND PRODUCTS Internal Sizing Background Materials Filler Use Conversion to Alkaline Papermaking AKD-ASA Competitive Scenario Synthetic Size Technology Rosin-based Sizes TABLE 33 COMPARISION OF PROPERTIES AND CHARACTERISTICS OF THE MAJOR INTERNAL PAPER SIZES Marketing Trends AKD ASA

10 Prices TABLE 34 PRICES FOR SYNTHETIC INTERNAL PAPER SIZES BY TYPE, (DOLLARS PER POUND) European Activities Overview Recent Marketing Activities Surface Sizing Overview Additives Used for Surface Sizing Starches Using Other Surface-sizing Additives Future Trends DRY-STRENGTH ADDITIVES Overview TABLE 35 DRY-STRENGTH ADDITIVES AND THEIR FUNCTIONALITY Technology Increased Use and Product Types Starches Polyacrylamides Cellulosics Natural Gums Pricing Trends WET-STRENGTH ADDITIVES Background Technology Product Types Urea- and Melamine-formaldehyde Resins Aminopolyamide-epichlorohydrin Resins Aldehyde-Modified Resins Trends Pricing RETENTION/DRAINAGE AIDS Overview Technology Products Used Overview Background Alum Process Improvements Pricing Trends BIOCIDES AND SLIMICIDES Overview Background

11 Microorganism Types Importance of Organosulfur-based Biocides Other Product Types Nonoxidizing Agents Inorganics Biodispersants Alkaline Paper Use Paper Mill Microbiocidal Programs Market Participants TABLE 36 SELECTED KEY COMMERCIAL SLIMICIDES USED IN PAPER MILLS Prices Future Trends Strategic Issues Industry Structure Overview Importance of Service Companies Direct and Distributor Sales Costs Significance of Biological Testing Facilities Government Regulations Other Marketing Considerations MISCELLANEOUS ADDITIVES Overview Binders Background Benefits Products Used Overview Use of Synthetic Latexes Other Systems Technologies Polyvinyl Acetate Use Current Use Pricing Trends Defoamers Background Mill Use Product Use Other Chemicals Used Pricing Pitch Control Agents Background Solution to Problems

12 TABLE 37 DEPOSIT SOURCES IN PAPER MILLS AND CORRESPONDING CHEMICAL TREATMENTS Pricing Flocculants Creping Aids De-inking Agents Overview Products Used Dispersants Flow Modifiers Lubricants Others MARKET ESTIMATES AND FORECASTS Background TABLE 38 NORTH AMERICAN SPECIALTY PAPER ADDITIVE MARKET BY APPLICATIONS, THROUGH 2010 (MILLION LBS) FIGURE 3 NORTH AMERICAN SPECIALTY PAPER ADDITIVE MARKET BY APPLICATIONS, (MILLION LBS) TABLE 39 NORTH AMERICAN SPECIALTY PAPER ADDITIVE MARKET VALUE BY APPLICATION, 2005 ($ MILLIONS) TABLE 40 IDENTIFIABLE* NORTH AMERICAN SPECIALTY PAPER ADDITIVES BY TYPE OF CHEMICAL/POLYMER, THROUGH 2010 (MILLIONS OF POUNDS) TABLE 41 NORTH AMERICAN SPECIALTY PAPER BINDERS BY TYPE OF CHEMICAL/POLYMER, THROUGH 2010 (MILLION LBS) FIGURE 4 NORTH AMERICAN SPECIALTY PAPER BINDERS BY TYPE OF CHEMICAL/POLYMER, (MILLION LBS) TABLE 42 NORTH AMERICAN SPECIALTY PAPER DRY-STRENGTH AGENTS BY TYPE OF CHEMICAL/POLYMER, THROUGH 2010 (MILLION LBS) FIGURE 5 NORTH AMERICAN SPECIALTY PAPER DRY-STRENGTH AGENTS BY TYPE OF CHEMICAL/POLYMER, (MILLION LBS) TABLE 43 NORTH AMERICAN SPECIALTY PAPER DEFOAMERS BY TYPE OF CHEMICAL/POLYMER, THROUGH 2010 (MILLION LBS) FIGURE 6 NORTH AMERICAN SPECIALTY PAPER DEFOAMERS BY TYPE OF CHEMICAL/POLYMER, (MILLION LBS) TABLE 44 NORTH AMERICAN SPECIALTY PAPER SIZES BY TYPE OF CHEMICAL/POLYMER, THROUGH 2010 (MILLION LBS) FIGURE 7 NORTH AMERICAN SPECIALTY PAPER SIZES BY TYPE OF CHEMICAL/POLYMER, (MILLION LBS) TABLE 45 NORTH AMERICAN SPECIALTY PAPER RETENTION AND DRAINAGE AIDS BY TYPE OF CHEMICAL/POLYMER, THROUGH 2010 (MILLION LBS) FIGURE 8 NORTH AMERICAN SPECIALTY PAPER RETENTION AND DRAINAGE AIDS BY TYPE OF CHEMICAL/POLYMER, (MILLION LBS) TABLE 46 NORTH AMERICAN SPECIALTY PAPER PITCH AND CONTROL AGENTS BY TYPE OF CHEMICAL/POLYMER, THROUGH 2010 (MILLION LBS) FIGURE 9 NORTH AMERICAN SPECIALTY PAPER PITCH AND CONTROL AGENTS BY TYPE OF CHEMICAL/POLYMER, (MILLION LBS) TABLE 47 NORTH AMERICAN SPECIALTY PAPER WET-STRENGTH ADDITIVES BY TYPE OF CHEMICAL/POLYMER, THROUGH 2010 (MILLION LBS) FIGURE 10 NORTH AMERICAN SPECIALTY PAPER WET-STRENGTH ADDITIVES BY TYPE OF CHEMICAL/POLYMER, (MILLION LBS)

13 TABLE 48 NORTH AMERICAN SPECIALTY PAPER SLIMICIDES BY TYPE OF CHEMICAL/POLYMER, THROUGH 2010 (MILLION LBS) FIGURE 11 NORTH AMERICAN SPECIALTY PAPER SLIMICIDES BY TYPE OF CHEMICAL/POLYMER, (MILLION LBS) TRENDS THAT CAN IMPACT ADDITIVE USE IN PAPERMAKING TRENDS That Can IMPACT ADDITIVE (Continued) INDUSTRY STRUCTURE OVERVIEW ASSESSING THE MAJOR PLAYERS TABLE 49 GLOBAL SALES OF THE LEADING PAPER CHEMICAL COMPANIES, 2004 ($ BILLIONS) ASSESSING THE MAJOR PLAYERS (CONTINUED) COMPANY PROFILES TRADE NAMED PRODUCTS TABLE 50 KEY SYNTHETIC PAPER AND SPECIALTY PAPER ADDITIVE TRADE NAMED PRODUCTS TABLE 50 (CONTINUED) TABLE 50 (CONTINUED) ALBERMARLE CHEMICAL AMERICAN PROFOL ARJOBEX, INC ARJOBEX, INC. (CONTINUED) ASHLAND SPECIALTY CHEMICAL B&F PLASTICS BASF BAYER CHEMICALS BERCEN, INC BUCKMAN LABORATORIES CIBA SPECIALTY CHEMICALS CLARIANT CORP DOW CHEMICAL EKA CHEMICALS GRANWELL PRODUCTS HERCULES, INC KEMIRA, INC NALCO NAN YA PLASTICS HOP INDUSTRIES HPO, INC HPO, INC. (CONTINUED) PAPERFEEL, LTD PHOENIX FILMS PLASTICS SUPPLIERS

14 PLASTICS SUPPLIERS (CONTINUED) PPG ROHM & HAAS, INC A. SCHULMAN TOYOBO TRANSILWRAP VALERON STRENGTH FILMS YUPO CORP YUPO CORP. (CONTINUED) APPENDIX ACRONYMS ACRONYMS (CONTINUED)

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