Metalworking Fluids Overview & Product Offering

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

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

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

4 Types of MWFs Removal/Cleaning Fluids Forming Fluids Protection Fluids Treating Fluids

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

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 Casting Compounds Drawing Fluids Hydroforming Stamping Fluids Forging Compounds

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)

4. Treating Fluids Act as heat transfer medium in thermal processes 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

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

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

NA Use by Geography 2007

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.

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

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

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

Product Nomenclature

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 Ester 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 (R-Plurionc Series) Boundary lubricant, emulsifier, cleaner, typically lower cloud points than PEL-LOK PEL-RON Varies Deodorizing agents

How to use the application guide . . .

Table of Contents (by function/chemistry)

Product Application (in back by product and chemical name)

How do the functionalities and the chemistries compare?

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

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 20 10 12 12

Hydrophobic = Lipophilic water avoiding = oil seeking

Changes to the Alkyl Group or Hydrophobe Increasing Carbon Chain Length increase in detergency increase in viscosity decrease surface tension decrease in solubility decrease critical micelle concentration (CMC) C8 C10 C12 C14 C16 C18 C20 C22 Detergents Foamers Wetters Conditioners Thickeners Hydrotropes 20 10 12 12

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

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

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

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 ester 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

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

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

Corrosion Inhibitors (p.14-15) Trade Name Chemistry Type % Conc pH Other Functions PEL-AMID DEA and DEA-free Alkanolamide Ferrous 100 9.5-10 Emulsifier, lubricant PEL-HIB, PEL-INE, PEL-QUAD Boric acid esters of alkanolamines, Ethylenediamine, ethoxylate, propoxylated Ferrous & non-ferrous 50-100% 5.8-11 Buffer PEL-PHOS Ethoxylated phosphates Cleaner

Putting it all Together

Putting it all together . . . Category Application Trade Names Removal Fluid Cutting, grinding, drilling, etc. PEL-ALC, PEL-AMPH, PEL-EST, PEL-INE, PEL-LOK, PEL-LUBE, PEL-PAG, PEL-PHEN, PEL-QUAD, PEL-ROK Forming Fluid Rolling, drawing, stamping, casting, forging, etc. Protecting Fluid Corrosion and temporary oxidation protection PEL-AMID, PEL-EST, PEL-HIB, PEL-INE, PEL-PHOS Treating Fluid Quenching and tempering None

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.

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

Discovery Questions? Do you make water based/water miscible MWF? What type(s)? (synthetic, soluble oil, semi-sythenitic) 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?

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

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