Desmet Ballestra Italy - A 60-year journey in the design of detergent plants and more

DESMET BALLESTRA S.p.A. – ITALY (DBI)

A 60-year journey in the design of detergent plants and more Ilio Sebastiani

Head of Research and Development

Detergents Surfactants Soap & Chemicals

PRESENTATION INSIGHTS

RESILIENCE – from 1960 to future …

VISION – for success WIN TOGETHER – a mantra

2

SUPPLY-CHAIN IN DETERGENT INDUSTRY HOW WE SUPPORT THE BUSINESS RAW MATERIALS

CHEMICAL PRODUCER (es. SURFACTANTS)

DETERGENT MANUFACTUR ING

DISTRIBUTION

DESMET BALLESTRA ITALY SUPPLIES TECHNOLOGIES AND RETAILERS

PROCESSES (INDUSTRIAL PLANTS) FOR THE TRANSFORMATION OF THE RAW-MATERIALS IN SURFACTANTS and SOAPS AND FOR THE FORMULATED DETERGENT MANUFACTURING.

CONSUMER

3

DBI CORE TECHNOLOGIES CHEMICAL PLANTS

SULFONATION PLANTS

[INORGANIC ACIDS

[ANIONIC SURFACTANTS]

HF, H3PO4, H2SO4 AND FERTILIZERS]

MULTI-PURPOSE PLANTS

DETERGENT PLANTS

DBI TECHNOLOGIES

[CATIONIC AND AMPHOTERIC SURFACTANT, ESTERS SPECIALTIES]

[POWDER AND LIQUIDS]

SOAP AND DETERGENT BARS

ALKOXYLATION PLANTS

FINISHING LINE MACHINES

[NON-IONIC SURFACTANTS AND SPECIALTIES]

4

DBI BUSINESS SEGMENTS - DSSC SURFACTANTS & DETERGENTS (The core business of Ballestra since its start-up in 1960) • Typical value of projects (EP basis, w/out field services): 1 ÷ 10 M€ • Average duration of projects: 15 to 30 months (up to plant start-up) • Main products: • Anionic, non-ionic, amphoteric, cationic surfactants (liquid, viscous paste, powder/solid formats) • Liquid, powders, solid format detergents

INORGANIC CHEMICALS (business expansion, from 2000) • Main products: • Sulphuric and Phosphoric acids, P-Fertilizers, various compounds for the detergent and fertilizers industry.

• Typical value of projects (EP basis, w/out field services): 5 ÷ 100 M€ • Average duration of projects: 20 to 30 months (up to plant start-up)

SOAP (New business from 2017 with acquisition of MAZZONI co.)

• Main products: • Natural and Synthetic Soaps • Detergent bars • Typical value of projects (EP basis, w/out field services): 0.5 ÷ 2 M€ • Average duration of projects: 6 -12 months

5

DESMET BALLESTRA GROUP STRUCTURE International footprint

6

DBI REFERENCES WORLDWIDE 1800 plants in over 120 countries *

* Not including Mazzoni LB plants

7

TECHNOLOGICAL MILESTONES MISSION: production of detergents and then sell them in Italy and abroad.

DOUBLE STEPNEUTRALIZATION TECHNOLOGY

NEW HEADQUARTER FOUNDATION OF R&D DEPARTMENT

BALLESTRA FOUNDATION

1960

STRATEGY: development, implementation and launch of ultramodern and updated technologies in the field of Anionic Surfactant

SO3 STIRRER CASCADE SULPHONATION TECHNOLOGY

1972-73

1978-80 SO3 FALLING FILM SULPHONATION TECHNOLOGY (SULFUREX)

SPRAY-DRYING DETERGENT TECHNOLOGY

8

1981

1982 NON-TOWER DETERGENT TECHNOLOGY KETTEMIX)

TECHNOLOGICAL MILESTONES The time was now ripe to launch a diversification strategy.

Serving world class partners.

1983 LAUNCH OF NEW STANDARD PLANT FULLY AUTOMATED

1987

Along the path of innovation.

Entering the chemical plants business.

TECHNOLOGY FOR CONTINUOUS ESTERIFICATION OF OILS VACUUM NEUTRALIZATION (BIO-DIESEL PLANTS) TECHNOLOGY

1995

1989

ACQUISITION OF CMB COMPANY (OLECHEMICAL PLANTS)

1998

2000-2005 NEW EPCM BUSINESS MODEL (TURN-KEY PLANTS)

FIRST ETHOXYLATION PLANTS (STIRRED REACTOR)

9

TECHNOLOGICAL MILESTONES Expansion and diversification moved forward at a frenetic pace, launching the company into new technological fields.

Continue to modernize and look to the future

ACQUISITION OF PRESSINDUSTRIA ETHOXYLATION TECHNOLOGY (EXPANSION IN NON-IONIC SURFACTANTS AND SPECIALTIES SEGMENTS)

CONSTRUCTION OF FIRST LINEAR ALKYL BENZENE PRODUCTION PLANT (PETROCHEMICAL PLANTS)

2000 FIRST SULFURIC ACID PLANT (START ALLIANCE WITH MECS EX. MONSANTO ENVIROTEC)

2001

2006-2008

2005 ALLIANCE WITH THE BELGIAN GROUP DESMET AND FUONDATION OF MULTINATIONAL “DESMET BALLESTRA GROUP”

NEW INTEGRATED SULFURIC ACID SODIUM/POTASSIUM SULPHATE MANNHEIM FURNACE AND FERTILIZER PLANTS (EXPANSION OF CHEMICAL BUSINESS SEGMENT)

10

2009

TECHNOLOGICAL MILESTONES Continue the Technology Portfolio expansion

FIRST PHOSPHORIC ACID PLANT (MERCHANT AND PURIFIED GRADE) LAUNCH OF ULTRA-LOW DIOXANE TECHNOLOGY FOR ETHOXY-SULPHATE PRODUCTS

MES TECHNOLOGY

2010

2011

2017

2019

2020

2021

ACQUISITION OF MAZZONI GROUP ACQUISITION OF BUSS TECHNOLOGY LEADER IN SOAP TECHNOLOGY DRIED FORMULATED LABSNA PLANT (RIM-BLOCK AND SYNDET BARS)

FOTO KLK

11

SURFACTANT TECHNOLOGIES SOURCE

PRUDUCTS

DESMET BALLESTRA ITALY TECHNOLOGIES

RAW MATERIALS

PETROL-BASE LAB

AO

EO/PO

TECHNOLOGIES DESMET BALLESTRA OLEOCHEMICALS

BIO-BASED (OIL) GLYCOLS

FA

FFA

ME

GLYCERIDES

GLYCEROL

FA + NH3

BIO-MASS

AMINES

GLUCOSE

SULPHONATION

SAPONIFICATION

MULTIPURPOSE REACTOR

NEUTRALIZATION (Vacuum and Loop)

VACUUM DRYING

QUALITY ADJUSTMENT

DRYING - EXTRUSION

EXTRUSION - REFINING

PURIFICATION

HYDROLYSIS

STAMPING

ALKOXYLATION

AOS LABS MES FAS FAES SFA (LIQUID, NEEDLES, POWDER, GRANULES)

*TECHNOLOGY UNDER DEVELOPMENT PROGRAM

FAE ETHOXYLATED AMINES ETHOXYLATED FA ETHOXYLATED OILS ETHOXYLATED POLYOLS ETHOXYLATED ALKYLAMIDES MEE PEG

12

SOAP NOODLES SOAP BARS

BETAINES AMIDES AMINE OXIDES ESTERS PARTIAL GLYCERIDES SULPHATE-FREE* ESTER-QUATS* APG*

OTHER SPECIALTIES (NON-DETERGENTS)

RAW MATERIALS

DESMET BALLESTRA ITALY TECHNOLOGIES

FA

OIL/FFA/ME

GLYCEROL

ALKOXYLATION REACTOR

EO

MULTIPURPOSE REACTOR

QUALITY CONTROL AND ADJUSTEMENTS

PURIFICATION

PRODUCTS

ESTERS POLYETHER POLYOLS POLY-ESTERS POLYETHYLENE GLYCOLS POLYETHER MONOMERS EO/PO Co-Polymers (Lubricants, etc…)

13

PO

WORLD DETERGENTS AND SURFACTANTS HOT SPOTS World market figures support a positive trend of the sector

Detergents and surfactants show uninterrupted technical development

Surfactant types are undergoing expansion and diversification for both their sources and chemical families

Detergent formats are more and more focused on local and specific market demand

Surfactants and formulated products for personal care and sanitizing applications have acquired outstanding importance 14

WORLD ANIONIC SURFACTANT TREND

ANIONIC SURFACTANT ARE STILL THE WORKHORSE OF THE DETERGENCE INDUSTRY

ANIONIC RANGE IS MORE AND MORE EXTENTED TO NATURAL RAW MATERIALS [BIO-BASED SURFACTANTS]

LABS STABLE BUT QUALITY-WISE IS STILL UNDER IMPROVEMENT

15

FAS AND FAES STRONGLY INCREASING SPECIFICALLY IN PERSONAL CARE SEGMENT

MES IS STABLE BUT CONFINED TO A FEW AREAS / PRODUCERS

AOS IS NOT INCREASING BUT WIDELY USED IN SOME MARKETS

WORLD NON-IONIC SURFACTANT TREND

ETHOXYLATES ARE STILL THE MOST WIDELY USED TYPE

EO CONTENT DECREASING

OVERALL CONSUMPTION SUPPORTED BY THE GENERAL INCREASE OF LIQUID FORMULATIONS

16

INCREASING IMPORTANCE FOR «NON-DETERGENT» APPLICATIONS

DETERGENT TECHNOLOGIES NON-IONICS

CATIONICS AMPHOTERICS

OTHER RAW MATERIALS

AOS LABS MES FAS FAES SFA SOAP

FAE POLYOLS ETHOXYLATED AMMINES* MEE PEG

BETAINES AMIDES AMINE OXIDE ESTER-QUATS* APG* SULPHATE-FREE*

SODIUM SILICATE ZEOLITE CMC NaCARBONATE NaOH NaSULPHATE

LIQUID DETERGENT PLANTS

FORMULATED LABSNA TECHNOLOGY

BATCH & CONTINUOUS

PRILLING

PR0DUCTS

DESMET BALLESTRA ITALY TECHNOLOGIES

RAW MATERIALS

ANIONICS

SPRAY-DRYING VACUUM-DRYING

EXTRUTION PLANTS

LAUNDRY HOUSEHOLD CARE HOME-CARE PERSONAL CARE INSTITUTIONAL CLEANING AND SANITATION (I&I) DISHWASHING HARD SURFACE CLEANING

AGGLOMERATION (NON-TOWER DETERGENTS)

HYGIENE FOOD AND BEVERAGE PROCESSING VEHICLE AND TRANSPORTATION CARE INDUSTRIAL CLEANING TRIGGERS SYNDET BARS RIM-BLOCKS

17

WORLD POWDER DETERGENT TREND

MARKET VOLUME IS NOT DECLINING

PREFERRED FORMAT IN EMERGING COUNTRIES

ACTIVE INGREDIENT COMPOSITION NOT INCREASING

BULK DENSITY GETTING IMPORTANCE EVERYWHERE

18

PRICE IS THE MAIN FACTOR TO MAINTAIN COMPETITIVITY

IN LAUNDRY OVERALL PERFORMANCE RECOGNIZED AS SUPERIOR VS. OTHER TYPES

PACK SIZE NOT INCREASING

WORLD LIQUID DETERGENT TREND

LEADING THE MARKET IN DEVELOPED AREAS

INCREASING SHARE ALMOST EVERYWHERE

FORMULATION TECHNOLOGY CONTINUOUSLY UNDER DEVELOPMENT

SPECIALIZATION IS THE MAIN DRIVER FOR THE CONSUMERS

ATTENTION ON SAFETY AND ENVIRONMENT INCREASING WORLDWIDE

HIGH QUALITY OF SURFACTANT IN SYNERGY WITH CHEMICAL BOOSTER

COMPETITION WITH POWDERS IS STILL IMPORTANT

19

PACKAGING SIZE, SHAPE AND MATERIALS BECOMING EXTREMELY IMPORTANT

Thank you for your kind attention!!!

Let’s networking to win together

Ing. Ilio Sebastiani PhD: ISebastiani@DesmetBallestra.com

Detergents Surfactants Soap & Chemicals