ELECTRICAL RESINS FOR TODAY AND TOMORROW

ELECTRICAL RESINS FOR TODAY AND TOMORROWELECTRICAL RESINS FR TODAY AND TOMORROSWITCH MODE POWER SUPPLYSWITCHMODEPOWERSUPPLYPresentedby: SeanMcCabeHead of Technical DepartmentImpregnating Resins and CompoundsELANTAS, ZHUHAIELECTRONICTRANSFORMERSS.McCABE

ElantasGroup StructureSales 2006EmployeesELECTRONICTRANSFORMERSS.McCABE 409m1.052*Sales 2006Employees 339m1.802*Sales 2006EmployeesSales 2006Employees 325m883* 1,3bn4,500Sales 2006Employees 221m655*

Elantasat a GlanceSales 2006EmployeesSales 2006Employees 409m1.052*Sales 2006Employees 339m1.802*Sales 2006Employees 325m883*Sales 2006Employees 221m655*BYK-Chemie GmbHECKART GmbH & Co. KGELANTAS GmbHACTEGA GmbHBYK Asia PacificECKART AmericaELANTAS BeckACTEGA ArtisticaBYK-CeraECKART AsiaELANTAS Beck IndiaACTEGA DSBYK-Chemie de MexicoECKART BeneluxELANTAS CamattiniACTEGA FoshanBYK-GardnerECKART CosmeticsELANTAS DeatechACTEGA KelstarBYK Gardner USAECKART FranceACTEGA RadcureBYK JapanECKART ItaliaELANTAS Isolantes Eletricosdo BrasilBYK SolutionsECKART MexicoBYK TonglingECKART PigmentsBYK USAECKART SuisseECKART SwitzerlandELECTRONICTRANSFORMERSS.McCABE 1,3bn4,500ECKART UK* (2006-12-31)ECKART ZhuhaiELANTAS PDGELANTAS TonglingELANTAS UKELANTAS ZhuhaiACTEGA RhenacoatACTEGA RhenaniaACTEGA Terra

ELANTASGlobal FootprintHeadquartersProduction, SalesSales officeELANTAS UK, GreatBritainELANTASHeadquarters,GermanyELANTAS Beck,GermanyELANTAS Camattini,ItalyELANTAS Tongling,ChinaELANTAS PDG,USAELANTAS Zhuhai,ChinaELANTAS IsolantesElétricos do Brasil,BrazilELECTRONICTRANSFORMERSS.McCABEELANTAS Deatech,ItalyELANTAS BeckIndia, IndiaWith production, R&D and technical service in Americas, Europe and Asia,ELANTAS is well positioned to benefit from ongoing globalization

Primary InsulationProducts and Applications Wire enamels for the primary insulation of magnet wire Magnet wire is applied in electric motors, generators andtransformersELECTRONICTRANSFORMERSS.McCABE

Secondary InsulationProducts and Applications Secondary Insulation of winding wire after it is mounted in a device(electric motor, generator or transformer) Applied through various application techniques(dip, roll-dip, hot-dip, trickle, VPI etc.)ELECTRONICTRANSFORMERSS.McCABE

Electronic and Engineering MaterialsProducts and Applications Resin systems for the overall protection of electronic circuits andelectric devices Resin systems with specific functionalities in ERSS.McCABE

ELANTAS, ZHUHAI:INVESTMENT AND PRODUCTION CAPABILITYRegistered Capital: 5.70 MillionUSDTotal Investment:9.50 Million USDFluid working capital:3.2 MillionUSDArea of Land: 70,000m²Building area of the firststage:12,500m²Production Capability:15,000 tons of high performanceimpregnating varnish per year.10,000 tons of wire enamels peryearELECTRONICTRANSFORMERSS.McCABE

CONSTRUCTION HISTORY¾ In October 2002, Decision wasmade to set up Elantas ElectricalInsulation (Zhuhai) Co. Ltd.¾ In August 2003, Construction ofZhuhai plant was formally started¾ By the end of July 2004,construction of the plant wasfinished and commissioningstarted¾ In September, 2004, Zhuhai plantbegan the trial production.ELECTRONICTRANSFORMERSS.McCABE

EQUIPMENT STATUS Six reactors(3 15 cubic meters, 1 8 cubicmeters, 1 4 cubic meters,1 500 liters) Eight dilutors(5 35 cubic meters, 2 15 cubicmeters, 1 1 cubic meter) Ten mixers(2 3 cubic meters, 2 5 cubicmeters,3 8 cubic meters, 3 1cubic meters)ELECTRONICTRANSFORMERSS.McCABE

EQUIPMENT STATUS¾ Ten intermediate storage tanks¾ (10 50 cubic meters)¾ Fourteen raw material storagetanks¾ ( 7 60 cubic meters, 7 100cubic meters)¾ One waste fluid collecting tank¾ (60 cubic meters)¾ One safety tank (50 cubic meters)ELECTRONICTRANSFORMERSS.McCABE

QUALITY CONTROL STATUS¾ISO 9000 was issued in May,2005¾ OHSAS 18000 & ISO14000 in2006;¾ TS16949 in May, 2007.¾ Major test equipment for lab ispositioned such as FTIR, TGA,DSC, Bond strength tester etc.which is enough for currentquality control requirements;¾Technical development &management systems areapplied to insure future quality.ELECTRONICTRANSFORMERSS.McCABE

QUALITY CONTROL STATUS¾ Both Chinese and English versions ofraw material specifications, testingprocedure and product specification,testing procedure and productionprocess are available;¾ UL approval work is done and we areauthorized to produce and sell allproducts transferred / approved from P.D. George and other sister companies.¾ A new lab has been established withmore advance equipment like VPI andEnameling machine.ELECTRONICTRANSFORMERSS.McCABE

A Strategic Approach toSpecific Applications –Electronic TransformersELECTRONICTRANSFORMERSS.McCABE

Topics:¾ Market size and development¾ Electronic transformers – what are they?¾ Resin requirements¾ Products offered by ELANTAS¾ Future resin systemsELECTRONICTRANSFORMERSS.McCABE

Market size and developmentElectronic Transformers1999 - 20042005 - 2010Explanation1.Market growth*20 % p.a.10-15 % p.a.(volume units: Mtons)2.Electronic Transformers10.008.003.6.00Electronic Transformers4.004.2.000.002003 2004 2005 2006 2007 2008 2009 2010Electronic Transformers 3.83 4.33 4.88 5.51 6.22 6.80 7.44 8.14Secondary data: CHEAA – appliance referenceELECTRONICTRANSFORMERSS.McCABE5.This market is dominatedby USA companies whohave OEM in China plusTaiwanese & Japanesebases. They continue tomove production to ChinaThis is the first industry inour field to absorb theforeign investment in Chinasince their end product ishighly labour intensive.Future growth will be thegrowth of the Chinesedomestic market for export.OEM and / or foreignmanufacturers focus onexport but products have tobe UL approved.Many manufacturers havespecified Elantas materials

Electronic Transformers – What are they?Component name:TransformersTransducersLightning and Surge Protection chgearUsed in:TelecommunicationsOffice equipmentAutomotiveAppliancesThe control circuit of BE

Electronic Transformers – Operation?¾ Inductance is the ability of a coil to establish (or induce) a voltage within itself tooppose changes in current through its windings.¾ When varying current (AC) flows through a coil, a voltage is induced within the coilin a direction so as to oppose the change of current through it.¾ Transformers are one of the major applications. These are made from "mutuallycoupled" coils where the magnetic field established in one coil, 'cuts' through theother coil and hence induces a voltage in the other coil. This is called 'mutualinductance'.¾ They are used in electronics to step-up or step-down voltages. When a varyingvoltage (like AC) is applied to one of the coils of the transformer a voltage is'induced' in the other coil due to mutual inductance.ELECTRONICTRANSFORMERSS.McCABE

Resin functions:¾ Transformers are noisy! : Electrical varnishes help the unit resist vibration¾ Transformer consolidation : Electrical varnishes help the unit resist wireseparation, by solidifying the core and holding the conductors together within thecoil.¾ Environmental: Electrical varnishes insulate the winding and core from theenvironment. This insulation prevents the oxidation of core material anddeterioration of magnet wire insulation due to contact with moisture orairborne impurities.¾ Insulation of minute "nicks" on the magnet wire, increased dielectric strength ofenamelled wire and fibrous and porous sheet insulation.¾ Raised operating temperature of low-temperature sheet insulation.¾ Fill of internal voids within the component : Playing a major role in heattransfer from "hot spots" within the part to the surface.ELECTRONICTRANSFORMERSS.McCABE

Resin requirements:¾ Flexible: To aid noise reduction and prevent wire movement¾ Low viscosity: To facilitate penetration between fine wires¾ Low exotherm / shrinkage: To prevent damage to fine wires and limitchanges in inductance¾ High chemical and moisture resistance: To repel the environment¾ Increased electrical performance: Dielectric strength.¾ Increased thermal conductivity: Dissipate heat quickly and prevent hotspots.¾ Coefficient of Thermal Expansion: Solids expand in response to heatingand contract on cooling; this response to temperature change isexpressed as its coefficient of thermal expansionELECTRONICTRANSFORMERSS.McCABE

Resin functions in detailFlexible: To aid noise reduction and prevent wire movementBase resin used must be able to “flex” according to the frequencypower of the transformer to prevent micro-cracking.Flexibility is measured using:Hardness MeasurementsDIN 53505Tensile strengthISO527Glass transition temperatureIEC1006ELECTRONICTRANSFORMERSS.McCABE

Resin functions in detailLow viscosity: To facilitate penetration between fine wiresViscosity is the measure of a material's resistance to flow. It is a result ofthe internal friction of the material's molecules. Materials with a highviscosity do not flow readily; materials with a low viscosity are more fluid.The higher the viscosity the thicker the materialViscosity decreases as temperature increasesELECTRONICTRANSFORMERSS.McCABE

Resin functions in detailLow exotherm / shrinkage: To prevent damage to fine wires and limitchanges in inductanceWhen certain polymers cure they give out heat as an exotherm - theenergy dissipated in a chemical reaction. This heat is sufficient to breakwires and therefore change the overall inductanceELECTRONICTRANSFORMERSS.McCABE

Resin functions in detailIncreased thermal conductivity: Dissipate heat quickly and preventhot spots.Thermal conductivity is a measure of the heat transfer capability ofthe resin to prevent over-heating of the core. It is measuredaccording to ISO 8894-1.Inorganic fillers are used to increase this property but this can alsoincrease viscosity.ELECTRONICTRANSFORMERSS.McCABE

Resin functions in detailCoefficient of Thermal ExpansionMaterials expand / contract due to changes in temperature whichleads to changes in thermal vibration of the atoms in a material, andhence to an increase in the average separation distance of adjacentatoms.The linear coefficient of thermal expansion a describes by howmuch a material will expand for each degree of temperature increaseELECTRONICTRANSFORMERSS.McCABE

Resin ucibleCommon olyurethaneUnsaturated polyestersPBD resinsSaturated polyestersEpoxiesCommon SolventsXylene, tolueneStyrene, Vinyl tolueneSmall amounts of nonreactive organic solventTypical CureMethodsHeat / roomtemperatureHeat / room temperatureHeatTypical ProcessDip and BakePotting / Dip and Bake/VIDip and BakeMaterial TankStability (Pot Life)Very goodVery goodVery goodTank sYesNoNoPriceLowHighModerateDisposal CostsHighLowLowTypical Number ofPartsOneTwoOne / twoELECTRONICTRANSFORMERSS.McCABE

Resins and Compounds for the Electronic TransformerIndustryELECTRONICTRANSFORMERSS.McCABE

Elantas 468 rangeUsesChemical typeImpregnation of electronic componentsAdvantagesResilient epoxy resinSingle componentCure: 3-5hours at 135COutstanding Noise ReductionOutstanding Thermal DissipationHigh Dielectric StrengthExcellent Chemical and MoistureResistanceExcellent Tank StabilityLong product historyApplication MethodDip / Vacuum processELECTRONICTRANSFORMERSS.McCABEULrecognized up to Class 200C

Elantas V1630 / V1380 / 009-0008Chemical typeUsesImpregnation of motors andtransformersModified saturated polyestersSingle componentCure 20-30 minutes at 25 CAdvantagesFast air dryGood penetrationGood moisture resistanceApplication gnized up to Class 180CCUSTOMERSATC FrostDelco RemySignal TransformerJohnson ElectricVarious distributors

Elantas 003-1010Chemical typeUsesImpregnation of motors andtransformersSolvented saturated polyesterSingle componentCure 2-3 hours at 130-160 CAdvantagesHigh flexibilityHigh bond strengthGood moisture resistanceApplication zed up to Class 200CCUSTOMERSPhillips ShanghaiSanyoVarious distributors