Advantages & Cost Analysis of UV-Cured Powder Coating

DECORATIVE SURFACES CONFERENCE

OCTOBER 17 -19, 2012

LOEWS PORTOFINO BAY HOTEL

ORLANDO, FL

MICHAEL KNOBLAUCH

D V U V L L C

Advantages and Cost Analysis of UV-Curable Powder Coatings

Decorative Surfaces Conference

Global Market & Industry Overview

About UV-Curable Powder Coating

Performance Characteristics

Operational Efficiencies & Cost Analysis

Sustainability

Future of UV Powder

Conclusion & Questions

Presentation

2

GLOBAL MARKET & INDUSTRY OVERVIEW

UV-Curable Powder Coating 3


Global population 2012 6 Billion - 2030 7.4 billion1

3 Billion more middle class consumers by 20301

2012 global motor vehicle production – 51.7 million units2

2030 estimated global motor vehicle production – 80.6 million units3

Energy demand to increase by 420 quadrillion BTUs 2010 - 20301

Convergence of sources and diversity of energy mix

fossil – biofuel – renewables – nuclear4

Global Market Perspective

4


Global policies to reduce carbon emissions By 2030 of a 42% reduction of carbon as a % of GDP

By 2030 stabilizing carbon at 450ppm4

Global growth 2012 – 2016 advanced economies – 1.1% to 3.0%5

Global growth 2017 – 2025 advanced economies – 1.3% to 2.6%5

Global growth 2012 – 2016 developing economies – 3.6% to 6.5%5

Global growth 2017 – 2025 developing economies – 2.8% to 4.3%5

1. McKinsey Global Institute : Resource Revolution: Meeting the world’s energy, materials, food and water needs. 2011

2. Robert W. Baird & Co.: Global Auto & Truck Markets – March 2012

3. Autelligence: Megatrends in the global auto industry to 2030: 2010

4. BP Energy Outlook 2030: 2011

5. www.conference –board.org/data/globaloutlook.cfm

Global Market Perspective

5


Paints and coatings market*

Global coatings market to reach 8.7 billion gallons and US$107 billion by 2017

Solventborne liquid coatings 75 – 80% of market

Global powder coating market US$5.4 billion

UV-curable coating market*

Consumption of UV- curable coatings from 2009-2017 will grow at CAGR of 6.65%

Producing by 2017 - 1210.46 metric tons of product. * Global Industry Analysts, Inc.

•

Coating Industry Today

6


UV-Curable coating technology is increasingly being seen as the future

technology in the area of industrial coatings. The technology represents one of

the rapidly growing segments in the coatings industry, and is arguably

emerging as the answer to the rising environmental concerns and stringent

regulations. Several application related advantages come to serve the

technology that include absence of pot life issues, lower energy costs, fast cure

speed, and reduced environmental impact.

As such, one-component UV-Curable coating ranks among the fastest coating

chemistries available in the present context. Curing of one-component UV-

Curable coating takes few seconds to minutes, which makes it more ideal for

use in applications that require faster turnaround time.

Global Industry Analysts, Inc. March 2012

Coating Industry Tomorrow

7

ABOUT UV-CURABLE POWDER COATING



Thermoset or thermally cured powder coatings were developed in the 1960s as functional coatings and have been adapted and developed for a variety of applications

Powder coatings give superior wear resistance, barrier properties, and cost effectiveness

Products include home appliances, industrial equipment, automotive primer, top coat

Powder coatings have no volatile organic compounds (VOC)or hazardous air particulates (HAPs).

Metal substrates are ideal for electrostatic powder application

Thermal cure cycle for powder coating ranges from 20 to 60 minutes depending on chemistry and part geometry

Powder Coating

9


1998 – 2000s: 1st commercial applications in U.S.

Automotive radiator

Industrial motor

2001: Decorative Veneer built the 1st UV-curable powder coating facility for MDF in Plainwell, MI USA, followed by RADEX in London, Ontario Canada

Application facilities built in Europe for MDF and PVC cushion floor

2005: Decorative Veneer system moved to Cleveland, OH and DVUV formed Key markets: Retail – Healthcare – Education & Office furniture – specialty applications

2006: Keyland Polymer, Ltd. formed to develop, formulate, and manufacture UV-curable powder coatings for DVUV and other customers

History of UV-Curable Powder Coating

10


The differentiating characteristic of UV-curable powder coating is the separation of melt & flow from cure

UV Powder Coating

Melt & Flow 1 min UV Cure

(secs)

Electrostatic Powder

Deposition Finished Product

Substrate Pretreatment

Melt, Flow & Cure 10-30 mins

Low Temperature - 93C

11


Reduced Manufacturing Footprint

Typical thermal powder plant size >15,000 sq ft

Typical UV powder plant

size 2,050 sq ft


A UV powder application system

Parts are loaded and

prepared

Pretreatment

Electrostatic powder

application

Flow/Melt oven

UV Cure oven

UV Powder Application System

Powder Coating Application Environmental Room

Unload Area

Load Area

Pretreatment

Melt Oven

UV Cure Oven

Prep

200 foot line – cycle 20 minutes


Resin – Unsaturated 60 – 95 wt %

Photo Initiator 0.5 – 3.0 wt %

Surface and Depth

Flow Control Agent 0.5 – 2.0 wt %

Degassing 0.5 – 4.0 wt %

Pigments 0.1 – 20 wt %

Filler/Extender 0 – 35 wt %

Additives 0.25 – 1 wt %

UV Powder Chemical Composition

14


Intensity - Power or density of UV energy

Typical 1000 - 3000 mW/cm2 UV V

Ideal conditions - high intensity over short time

Exposure - Total energy received at coating surface

Typical 1000 - 3000 mJ/cm2 UV V

Intensity (mW/cm2 ) X time (secs) = Exposure (mJ/cm2)

UV Spectrum required for different applications Clear/Tints -Mercury

Opaque - Iron additive and Gallium additive Mercury

UV Curing Parameters

15

Long Wave

Short Wave

In depth cure

Surface cure


MDF or Medium Density Fiberboard Made from wood fibers, resins & additives which are bonded under heat and

pressure.

Excellent substrate for UV powder coating Dense & flat

Low porosity

Homogenous

Powder Coating MDF

16


Heating the board draws moisture to the surface, making it conductive for electrostatic powder application.

2 Types of Application

Powder Coating MDF

17

Corona Spray Powder passes through highly charged & ionized

corona field, powder picks up negative charge

High transfer efficiency and applies quickly

Tribo Charging Powder develops a static charge due to friction

Provides better penetration into recesses

Slower application and lower transfer efficiency


Powder Coating Advantages Easier to blend, process and control during

application

Easily to clean up with an industrial vacuum

Powder coatings can be reclaimed and re-sprayed yielding up to 98% material utilization or sprayed to waste

Color changes do not require any purging materials or solvents and can be accomplished in minutes

Application Process Advantages

18


Finishing at the Speed of LightFinishing at the Speed of Light

Finishes and Color Matching

Metallic

Multi- Component

Opaque RAL – Pantone – PMS systems

19


Finished Products

Interactive Retail Display

Healthcare Component

POP Display

Educational Lectern

Architectural Element

PERFORMANCE

CHARACTERISTICS



Test Standard Category Test Description UV-W06-SS2 UV-W06A-SS2

ASTM D4138

Method A

Film Thickness Tooke Gauge - Destructive 3-4 mils 3-5 mils

ASTM D4060

Abrasion Resistance Taber Abrasion Test - CS-17 Wheel 500gm,

500 cycles

32.4 mg loss 29.1 mg loss

ASTM D3363-05 Scratch Resistance

– Pencil Hardness

Hardness – Wolff-Wilborn

300 gm load, 45° / no scratch

2H 3H

ASTM D523 Gloss Measurement 60° NOVO-GLOSS meter 22-25 units 16-20 units

NEMA LD3-1995 Impact Resistance 224 g steel ball (1/2 lb) 1 ½” dia. No cracking at 55” No cracking at 35”

NEMA LD3

- 2005 3.4

Cleanability / Stain

Resistance

Reagents:

10% citric acid, vegetable oil, coffee, milk,

catsup, mustard, vinegar, red lipstick, grape

juice, black permanent marker, water washable

black marker, and # 2 pencil

No permanent

effect on sample

surface

No permanent

effect on sample

surface

Cure MEK swap - 50 double rubs No softening or color

loss

No softening or

color loss

NEMA LD3

- 2005 3.4

Hot water Pool of boiling water placed on surface, pot

placed in water for 20 minutes

No blistering No blistering

ASTM D3359

Method B

Adhesion Cross Hatch Adhesion – MDF must be present

on piece of coating removed

No loss of

adhesion

No loss of

adhesion

UV-Curable Powder for MDF Substrates

22


Test Duration – 24 hours Reagents uncovered for

duration of test Verification of visual inspection

of the treated surface with each reagent shows no damage or impaired surface results after 24 hour exposure

Chemical Resistance

Reagent Effect

Engine oil no effect

Gearbox oil no effect

Hydraulic oil no effect

Brake fluid Slight gloss loss

Antifreeze no effect

Cold cleaner no effect

Inert cleaner no effect

E95 no effect

Unleaded gas Slight/moderate gloss loss

(a ring)

Diesel fuel no effect

Battery fluid no effect

23


Technical Information and Testing

24

Color Analysis X Rite SP 62 Spectrophotometer Integrating d/8° sphere geometry 4 Illuminants: daylight, cool white fluorescent,

TL84 triband fluorescent and incandescent Visual Color Assessment Light Booth 5 Light sources: daylight, cool white fluorescent,

TL84 triband fluorescent, incandescent and ultraviolet

NIST traceable documentation UV Lamp System 300 W/in microwave UV lamp, D, H and V bulb 600 W/in microwave UV lamp, V bulb Coating Thickness Measurement ASTM D6132, Non Destructive, Ultrasonic Film

Build ASTM D4138, Method A, Destructive Tooke Film

Build Gauge Abrasion Resistance ASTM D4060, Taber® Abraser 5130

Adhesion

ASTM D3359 Method A & B Surface Hardness

ASTM D3363, Pencil Hardness Scratch & Gouge

Impact Resistance

NEMA LD3 – 1995, 3.8 Mandrel Bend

ASTM D 522 Gloss Level

ASTM D 523, NOVO-GLOSS™ Gloss Meter Boiling Water Resistance

NEMA LD3 – 2005, 3.4 Cleanability / Stainability Test

NEMA LD3 – 2005, 3.4 Cure Analysis

PCI Test Method #8, 50 MEK Double Rub Test Texture Evaluation

Tenibac Plaque

OPERATIONAL EFFICIENCIES

&

COST ANALYSIS



Operational Efficiencies

0 10 20 30 40 50 60

Finish Time (min)

Liquid Coatings

Thermoset Powder

UV Powder

Part Cycle Time Anaylsis Thermal Cure Coating Systems (Powder & Liquid)

vs. UV Powder CoatingsCoating Application

Melt & Flow

UV cure

Solvent Flash

Thermal Cure

Cooling

26


Fast Instant cure

Completed parts in 20 minutes or less

One coat

Clean No harmful chemicals, monomers or additives

Safe to use – no special safety gear

Easy material handling and clean up

Green

Smallest carbon footprint of any coating material

No VOC’s

Waste recycling or repurposing

No operating permits

UV Powder Finishing Advantages

27


Higher Quality Finished Products Reduces substrate thermal exposure

Cross linked UV curing

Design and formulate coatings that are product specific

Lower Cost of Quality Higher throughput

Reduced WIP

Fewer defects

Faster and Higher ROI Able to process more material in a shorter period of time

Lower total applied cost compared to other finishing systems

UV Powder Process Benefits

28


Material Cost & Productivity

29

Material cost comparison$/sqare foot - Liquid and UV

cured powder

Liquid 2 coat lowVOC

$0.2712

UV powder spray towaste

$0.2940

UV powder spray toreclaim

$0.2054

$-

$0.0500

$0.1000

$0.1500

$0.2000

$0.2500

$0.3000

$0.3500

Material Cost per Square Foot of Surface Finished

Parts Produced per Day 8 hour Shift

Liquid 2 coat low VOC 388

UV-cure powder sprayto waste

1164

UV-cure powder sprayto reclaim

1164

0

200

400

600

800

1000

1200

1400

Parts Produced per Day


Revenue and Operating Margin

30

Operating margin data from www.nyu.stern.edu

Annualrevenue

Operating marginEBIT $

Operating marginEBIT %

Liquid 2 coat $907,621 $77,692 8.56%

UV-cure spray to waste $2,722,863 $233,077 8.56%

UV-cure spray toreclaim

$2,722,863 $544,302 19.99%

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

Revenue & Operating Margin

Liquid 2coat

UV-curespray to

waste

UV-curespray toreclaim

Total revenue/day $3,630 $10,891 $10,891

Total material/day $1,210 $3,995 $2,750

Gross margin/day =R-C

$2,420 $6,897 $8,142

$-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

Daily Revenue, Material and Gross Margin

SUSTAINABILITY



Assumptions for this Life Cycle Assessment

Substrate MDF, 19 mm

Average Surface Area 0.5 m2, coated both sides

Coating TiO2

Pigment/Resin/Filler 20/60/20 for all (avg)

Solid Contents 100% all powders

50% for all 2-k systems

40% for waterborne UV

Layer Thickness 150 um (6 mils)

Curing Temperature Depending on System

Sanding Not factored

Utilization %

(Transfer Efficiency)

95% Powder

90% Waterborne UV

60% 2k solventborne and waterborne

Solvent Treatment Incineration

Durability, Functionality, End of Life No differentiation

Sustainability – Life Cycle Assessment

Collaboration with DSM Coating Resins, originally presented at 2011 Decorative Surface Conference Orlando, FL

32


Sustainability

33


Coatings Life Cycle Assessment

Sustainability

Solid

Content

100% all powders

50% for all 2-k systems

40% for waterborne UV

Utilization %

(Transfer

Efficiency)

95% Powder

90% Waterborne UV

60% 2k solvent and waterborne

Assumptions

Substrate : MDF 0.75” Thick Coating both sides

Surface area – 5.4 sq ft

Pigment/Resin/Filler 20/60/20 for all (avg) TiO2

34


Solvent-based coatings have the highest environmental footprint

High CFP to produce and dispose solvents

Waterborne paints (conventional and UV 100% solids) have lower environmental impact

UV-curable powder coatings have the lowest environmental impact of coating materials

Sustainability – Findings

Coating Technology Impact on Carbon Footprint Solventborne-2K Waterborne-UV UV Powder

Carbon Dioxide, CO2 (kg/m2) 0.96 / mil of coating 0.35 / mil of coating 0.21 / mil of coating

Typical Coating Thickness 5 mils 2 mils 2 mils

Coating Carbon Footprint (CO2) 4.8 kg/m2 0.7 kg/m2 0.41 kg/m2

10 x More

35

FUTURE OF

UV POWDER



Convergence of the macro market forces creates greater opportunity for UV-curable powder coating Population growth and migration to cities

Reduction of carbon consumption as a % of GDP & establishment of carbon targets

Continuing growth of transportation sector

Continuing growth rates in emerging economies

UV-curable powder coating opportunities Innovative chemistries and application technologies deliver more value

at lower cost

Displacing existing finishing chemistries & application technologies

Develop and penetrate new markets and material applications

Future of UV-Curable Powder Coating

37


The coatings market will grow at or above aggregate global GDP. o The market offers better than average GPM and ROI opportunities to firms that bring

into the market innovative chemistries and coatings that meet market specific needs.

o Improved coating performance

o Demonstrably sustainable, economically viable and have a reduced carbon footprint

o Fast application time and fast cure response

UV-Curable powder coatings are a viable but nascent finishing system. o The productive and economic capability of UV-curable application technology is

clearly demonstrable and generates greater than market GPMs and higher ROIs.

o More resources need to be expanded to meet the significant market opportunities.

o UV-curable powder coating application technology and chemistry are poised to capture a significant and profitable market share of the Global Coatings Industry.

Fast – Clean & Green™

Conclusion

38

THANK YOU

&

QUESTIONS


M I C H A E L K N O B L A U C H

P R E S I D E N T

4 6 4 1 H I N C K L E Y I N D U S T R I A L P K Y

C L E V E L A N D , O H 4 4 1 0 9

2 1 6 - 7 4 1 - 5 5 1 1

M F K @ D V U V . C O M

W W W . D V U V . C O M

DVUV, LLC

Advantages & Cost Analysis of UV-Cured Powder Coating

Business

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cool white

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