1 Metalworking Fluids Overview Product Offering 2 What

1 Metalworking Fluids Overview & Product Offering

2 What are Metalworking Fluids? Multifunctional additive packages used in machining to assist in the production of a quality workpiece while extending tool life. Ø A range of oils and other liquids are used primarily to cool and/or lubricate metal workpieces

3 What do MWFs do? Cool metal/tool interface Lubricate metal/tool interface Flush or remove metal chips Protect against corrosion

4 Where are they used? Manufacture of: • • Transportation Equipment Machinery Primary Metal Products Fabricated Metal Products

5 4 Types of MWFs 1. 2. 3. 4. Removal/Cleaning Fluids Forming Fluids Protection Fluids Treating Fluids

6 1. Removal Fluids = Cleaning Fluids = Cutting Fluids = Coolants or Cleaners Used in the following machining operations: Automatic screw machining Boring Broaching Drilling Gear Shaping Grinding Hobbing Milling Sawing Shaving Taping & Threading

7 2. Forming Fluids Used in operations that change the shape or contour of the metal by bending, stretching, pounding, or squeezing. Types include: Rolling Oils Drawing Fluids Stamping Fluids Casting Compounds Hydroforming Forging Compounds

8 3. Protecting Fluids = Corrosion Inhibitors Used to temporarily shield metal surfaces from air, water, and exposure to other elements. Ferrous – protect iron and steel Nonferrous - protect copper, aluminum, and brass (soft metals)

9 4. Treating Fluids Ele products NOT used in Treating Fluids Act as heat transfer medium in thermal processes Change metal physical properties by heating or cooling to: • • • Harden or Soften Increase/Decrease elasticity Make brittle or stiffen

10 Summary Of MWF Types Category Application 1. Removal Fluid Cutting, grinding, drilling, etc. 2. Forming Fluid Rolling, drawing, stamping, casting, forging, etc. 3. Protecting Fluid Corrosion and temporary oxidation protection 4. Treating Fluid Quenching and tempering

11 Market Overview Ele products only used in Removal, Forming, and Protecting Fluids Ele products can only be used in water miscible MWFs (81% mkt)

12 NA Use by Geography 2007

13 MWFs and their components are Multifunctional One ingredient can perform multiple functions Experienced formulation chemists know the functions of specific chemistries Purchasing is likely to only know the chemical name and not the functionality of the chemistry To sell successfully you need to know both the function and the chemistry.

14 What “functionalities” do Elé products provide? Water Based MWF contain the following functional additives/ingredients Anti-foams Anti-mist agents Biocides Boundary Lubricant Additives Colorants/dyes Corrosion Inhibitors Deodorizing Agents Dispersants Emulsifiers Extreme Pressure Additives Fragrances Stabilizers Elé Products x x x x x

15 Elé product functionalities include: Cleaners Defoamers Dispersants Deodorizing Agents Emulsifiers Corrosion Inhibitors - Ferrous Extreme Pressure Lubricants (EP Additives) Boundary Lubricants • Water-Dispersable (W/D) • Water- Soluble (W/S) • Water-Insoluble (W/I)

16 Chemistries offered by Elé Anionic Modified PAGs Borate Esters DEA-Free Alkanolamides EO/PO Block Polymers Ethoxylated Amines Imidazolines Low Foam Nonionic Surfactants Phosphate Esters Polyalkylene Glycols (PAGs) Polyether Esters Salt-Free Amphoteric Surfactants & Hydrotropes Tertiary Amine Buffers

17 Product Nomenclature

18 Elé Product Nomenclature Trade Name Primary Chemistry Functions PEL-ALC Alkoxylated Alcohol Emulsifier, cleaner, low foam, nonionic surfactant, wetting agent PEL-AMID Alkanolamide Emulsifier, boundary lubricant, ferrous corrosion inhibitor, buffer PEL-AMPH Amphoteric Cleaner, coupling agent for non-ionincs, low foaming PEL-EST Polyester Emulsifier, boundary lubricant, cleaner, defoamer PEL-HIB Borate Ester Ferrous corrosion inhibitor, buffering agent PEL-INE Ethoxylated Amines, Tertiary Amine Buffers Buffer, corrosion inhibitor, emulsifier, cleaner, deodorizing agents PEL-LOK EO/PO Block Polymer Boundary lube, emulsifier, cleaner PEL-LUBE Anionic Modified Polyalkylene Gylcols EP additive, ferrous corrosion inhibitor, water soluble, low foaming, PEL-PAG Polyalkylene Gylcols Boundary lubricant (water soluble/water insoluble) PEL-PHEN Phenol Brightener additive in Zn metal plating PEL-PHOS Phosphate Esters EP additive, co-emulsifier, buffer, wetting agent, some ferrous and nonferrous metal inhibition, PEL-ROK EO/PO Block Polymer (RPlurionc Series) Boundary lubricant, emulsifier, cleaner, typically lower cloud points than PEL-LOK PEL-RON Varies Deodorizing agents

19 How to use the application guide. . .

20 Table of Contents (by function/chemistry)

21 Product Application (in back by product and chemical name)

22 How do the functionalities and the chemistries compare?

23 Cleaners Alkoxylated Alcohols* Amphoterics Amines* Block Polymers* Phosphate Esters* *also act as emulsifiers

24 HLB Drives Application HLB scale showing classification of surfactant function. The Hydrophilic-lipophilic balance (HLB) of a surfactant is a measure of the degree to which it is hydrophilic or lipophilic

25 HYDROPHOBIC = LIPOPHILIC water avoiding = oil seeking

26 Changes to the Alkyl Group or Hydrophobe Increasing Carbon Chain Length éincrease in detergency éincrease in viscosity êdecrease surface tension êdecrease in solubility êdecrease critical micelle concentration (CMC) C 8 C 10 Hydrotropes C 12 C 14 Detergents Foamers Wetters C 16 C 18 C 20 Conditioners Thickeners C 22

27 Cleaners (p. 2) Trade Name Chemistry % Conc HBL Wetting Other Functions PEL-ALC Alkoxylated Alcohols 100% 1 -12 Good - moderate Emulsifier PELAMPH Amphoteric ~50% 25+ Poor Coupling Agent PEL-INE Amine 100% 7 -17 Poor - Good Emulsifier, buffer, corrosion inhibitor PEL-LOK EO Block Polymer 100% 3 -15 Poor - Moderate Emulsifier, boundary lube

28 Defoamers (p. 3) Trade Name Chemistry % Conc Other Functions PEL-ALC Propoxyalated alcohol 100% emulsifier PEL-EST Propoxylate castor oil 100% Emulsifier, boundary lube PEL-PAG Propoxylated & ethoxylated butanol >99% Boundary lube

29 Deodorizing Agents (p. 4) Trade Name Chemistry % Conc p. H other PEL-INE Diethanolam 100% ine 11 Buffer, corrosion inhibitor PEL-RON Various 7 -9 Emulsifier, boundary lube 45 -55%

30 Emulsifiers (p. 5 -7) Trade Name Chemistry Other Functions PEL-ALC Alkoxylate alcohol Cleaners PEL-AMID Disopropanaolamide (DIPA) or Diethanolaminde (DEA) boundary lube, buffer, corrosion inhibitors PEL-EST Polyester Cleaners, boundary lube PEL-INE Ethoxylate amine Cleaner, buffer, corrosion inhibitors PEL-PHOS Alkoxylated, phospated, alcohol EP Additive PEL-ROK Reverse block polymers Cleaners, boundary lubricants

31 Boundary Lubricants (p. 8 -12) Water Insol. Water & Disp. Sol. Trade Name Chemistry PEL-ALC Alkoxylate alcohols x Emulsifier PEL-AMID Alkanolamids - DIPA or DEA x Emulsifier, buffer, corrosion inhibitor PEL-EST Polyester Esters x Emulsifier PEL-LOK EO/PO Block Polymer x Emulsifier PEL-INE PEL-QUAD Ethoxylated amines x Corrosion inhibitors, buffers PEL-LUBE Anionic Modified Polyalkylene Gylcols x EP Additive, Emulsifier PEL-PAG Polyalkalene glycols x Functional Fluids x Other Functions • W/I – polypropylene glycol ethers of butanol • W/S – 50/50 EO/PO alkoxylates of butanol PEL-PHOS Alkoxylated, phosphated alcohols PEL-ROK Reverse Block Polymers x EP additive, Emulsifier x Emulsifier

32 Extreme Pressure(EP) Additives (p. 13) Trade Name Chemistry Other Functions PEL-LUBE Anionic modified polyalkalene glycols Boundary lube PEL-PHOS Phosphate esters Buffer, cleaner, emulsifier

33 Corrosion Inhibitors (p. 14 -15) Trade Name PEL-AMID Chemistry Type DEA and DEA-free Ferrous Alkanolamide % Conc p. H 100 9. 5 -10 Emulsifier, lubricant 5. 8 -11 Buffer PEL-HIB, Boric acid esters of Ferrous 50 -100% PEL-INE, alkanolamines, & non. PEL-QUAD Ethylenediamine, ferrous ethoxylate, propoxylated PEL-PHOS Ethoxylated phosphates Other Functions Ferrous 50 -100% & nonferrous Cleaner

Putting it all Together 34

35 Putting it all together. . . Category Application Trade Names 1. Removal Fluid Cutting, grinding, drilling, etc. PEL-ALC, PEL-AMPH, PELEST, PEL-INE, PEL-LOK, PEL-LUBE, PEL-PAG, PELPHEN, PEL-QUAD, PELROK 2. Forming Fluid Rolling, drawing, stamping, casting, forging, etc. PEL-ALC, PEL-AMPH, PELEST, PEL-INE, PEL-LOK, PEL-LUBE, PEL-PAG, PELPHEN, PEL-QUAD, PELROK 3. Protecting Fluid Corrosion and temporary oxidation protection PEL-AMID, PEL-EST, PELHIB, PEL-INE, PEL-PHOS 4. Treating Quenching and None

36

37 MWFs and their components are Multifunctional One ingredient can perform multiple functions Experienced formulation chemists know the functions of specific chemistries Purchasing is likely to only know the chemical name and not the functionality of the chemistry To sell successfully you need to know both the function and the chemistry.

38 How to Approach Customers Wide variety of chemistries Can tailor to meet needs/Flexible Low MOQ Here is a sampling of our offering Please share your level of interest

39 Discovery Questions? Do you make water based/water miscible MWF? What type(s)? (synthetic, soluble oil, semisythenitic) What is your application? (removal/cleaning and forming, protection? ) Any formulation challenges? Need for high EO/PO alcohols? Difficulty meeting minimum orders? Dissatisfied with service or lead-times? Would you be interested in a secondary supplier?

40 Differentiate Elé More agile and responsive Ø 1, 000 kg to 40 metric tons, Ø Support from project inception, scale-up, through commercial success Ø Can make what others discontinue Ø Can respond quickly to changes in market Custom Tech Service Ø Taylor product to meet customer needs

Your Success = Our Success 41 How can we help you?