Company Profile

We Care About Society and the Environment

KEP is a socially responsible company. Our leaders and employees contribute their time and energy on an on-going basis to activities that enrich the lives of residents in their local communities. Globally, KEP is dedicated to becoming a sustainable company through its green management system and con-tinuous development of environmentally friendlier processes and products.

Sincerely yours

CEO Chin, Chong-Won

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Welcome to the World of KEPITAL®

A Global Leader

For more than 25 years, KEP has invested in the finest people and facilities to become a global leader in the production of copolymer POM. KEP operates one of the largest POM production facilities ‘under one roof’ in the world. With the ability to run six production lines at a nameplate capacity of 145,000 MT (300+ million pounds), KEP offers more than 200 grades of KEPITAL® POM to customers in more than 100 countries.

Our success is built on a philosophy of continuous improvement of our process technologies and innovative product development, backed by our global team in the US, Europe and China. As a result, our customers benefit from on-going advances in polymer science, as well as local assistance with application development and technical service.

A Total Solutions Provider

KEP provides customers with more than just high-performance POM: we provide genuine, real-world value. All are backed by the experience of developing thousands of applications across major industries worldwide. We believe that providing better POM and better service helps our customers to make better products for their customers, which creates a better future for everyone.

VISION

2022: Achieve USD 1 billion of sales

Become one of the 3 global POM producers

Become No 1 engineering plastics maker in Korea

Future creation

What’s more, a great workplace

MISSION

KEP will become the best chemicals company, capable of contributing to establishing the rich human future through continuous innovation and creation of values.

VALUES

We will deliver value that exceeds our customers’ expectations

We will pursue innovation with a passion that overcomes any obstacles

We will promote shared trust through our corporate social responsibilities

We will provide clean and safe solutions in an environmentally conscious manner

Through continuous innovation and creation of new values, Korea Engineering Plastics Co., Ltd. (KEP) will be the premier chemical company providing humanity with solutions for a better future.

Contents

Welcome to the World of KEPITAL® 3

KEP – A History of Success and Growth 4

KEPITAL® Offers a Broad Spectrum of Grades 5

Quality Management – Basis of Shared Success 6

KEPITAL® – Enabling High-Performance Applications 8

Research Center 10

Technical Service 11

Facts and Figures 12

Close to the Customer 13

KEP - For a Better Future 14

Corporate Social Responsibility 15

KEP – A History of Success and Growth

KEP operates multiple manufacturing lines at its pro-duction facility in Ulsan, where a variety of KEPITAL® grades are produced. This allows for dedicated lines per grade and the flexibility to switch products as

needed. Our manufacturing design ensures a high level of productivity and reliability as well as consistent product quality.

KEPITAL® Offers a Broad Spectrum of Grades

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KEPITAL® Offers a Broad Spectrum of Grades

KEPITAL® Product Range

Standard F10-01, F10-02, F15-33, F20-03, F25-03, F30-03, F40-03

High strength F10-03H, F10-03H M, F25-03H

UV-resistant F10-52D, F10-52H, F20-52, F20-51, F30-52, F30-51, F20-52G, F30-52G, F20-51U

Reinforced & filled Glass fiber: FG2025K, FG2015, FG2025, FG2025FGlass bead: FB2025Talcum: TC3020

Friction & wear Wear & noise improved standard grade: F25-03HTSpecial lubricant: TX-11H, TX-21, TX-31Teflon: FL2007, FL2020Silicone: TS-22H, TS-25HMolybdenum disulfide: FM2020

Impact modified Conventional: TE-21, TE-22, TE-23, TE-24New generation: TE-22S, TE-23S Super toughened: ST-30, ST-50, ST-60, ST-70

Conductive ET-20A, FA-20, FC2010

Anti-static F25-63

Low emission Standard: F20-03 LOF, F30-03 LOFHigh strength: F10-03H LOFImpact modified: TE-21 LOF, TE-22 LOF, TE-23 LOF, TE-24 LOFFriction & wear: TX-11H LOF, TX-31 LOF, F25-03HT LOF, TS-22H LOFUV-resistant: F20-52 LOFGlass fiber: FG2020 LOF

Solution for components of medical devices

MX20BT01, MX25BT01, MX30BT01

1987 Foundation of KEP as a joint venture of Tongyang Nylon Co.,Ltd. (Hyosung Corp. since 1998), Mitsubishi Gas Chemical Company Inc. and Mitsubishi Corporation in Korea.

1988 Commercial production begins under the brand name ‘KEPITAL’ at the Ulsan facility. With this, KEP becomes the first polyacetal producer in in Korea.

1989 Our Polymer Technology Research Center (PTRC) is established in order to develop new products and to further improve their quality. Technical support is available globally based on a wide range of research work undertaken in Gunpo, Korea.

1995 After two successful expansions, KEP increases its annual production capability to 35,000 MT per year.

1998 Our close partnership with customers and high quality products enable us to increase our market position and raise our domestic market share to more than 65%.

1999 Celanese enters the joint venture by obtaining 50% of KEP’s shares from Hyosung.

2000 Our continued focus on quality management enables us to obtain ISO/TS 16949, ISO 9001, QS 9000 and ISO 14000 approvals.

2002 Foundation of KEP Americas, LLC

2003 Foundation of KEP Europe GmbH

2004 Foundation of KEP China

2005 KEP receives the New Quality Innovation Award from the Korea Foundation for Quality.

2012 KEP receives a grand prize from the Korea Foundation for Quality in the New Quality SR (Social Responsibility) category.

2014 Expansion of our Ulsan POM facility to a nameplate capacity of 145,000 MTs (300+ million pounds) per year making KEP a leading global supplier of copolymer POM.

CHARACTERISTICS

High mechanical properties

High fatigue resistance

Long-term dimensional stability

Excellent fuel resistance

Excellent creep resistance

Superior friction and wear resistance characteristics

Superior chemical and alkali resistance

Quality Management System Approvals

ISO 9001 & ISO/TS 16949 (Quality Management System)ISO/TS 16949 combines various particular quality and process requirements for automotive manufacture and service part suppliers. The IATF (International Automotive Task Force) members developed this high standard based on the quality management system ISO 9001. It was approved by and jointly published with the International Organization for Standardization (ISO).

ISO 14001 (Environmental Management System)ISO 14001 is an internationally approved family of standards, which specifies criteria and requirements for all kinds of companies and organizations to manage their environmental responsibilities. It provides practical tools to achieve continuous improvement in their environmental behavior.

OHSAS 18001 (Occupation Health and Safety Assessment System)OHSAS 18001, referring to ISO 9001 and ISO 14001, is a management system that helps an organization to control its occupational health and safety risks. It provides guidelines and standards helping to minimize health and safety risks for employees and continuously improve the existing OHS management system.

Safety Assurance ApprovalsRegulations for Polymeric Materials to ensure safety quality assurance for the electrical and electronic application of resins in finished parts products.

UL (Underwriters Laboratories, USA) approvals:• UL94HB (Flammability), UL746A (electrical test), UL746B (RTI)

CSA (Canadian Standard Associate, Canada) approvals:• CSA C22.2 No.6 (Flammability)

Drinking Water & Food Contact Compliance

NSF (National Sanitation Foundation, USA) approvals:• NSF14 (Piping Plastics System Components and Related Materials)• NSF61 (Drinking Water System Components Health Effects)• NSF51 (Food Equipment)

FDA (Food and Drug Administration, USA) compliance:• 21CFR (Code of Federal Regulations), §177.2470, POM Copolymer • Compliance regulations for materials intended for food contact

BS 6920 (British Standard 6920, UK)Regulation for non-metallic components for use in contact with potable water

Regulation (EU) No. 10/2011European Regulation for plastic materials and articles intended for contact with food

BfR RecommendationsThe BfR Recommendations on materials for food contact include substances for which there is no harmonized European legislation. For plastics, these are the aids for polymerization, such as the components of the catalytic system (catalysts and initiators) as well as the polymer production aids.

Laboratory Quality Certification

KOLAS (Korea Laboratory Accreditation Scheme) Laboratory Quality System with ISO 17025KOLAS is mutual recognized with APLAC (Asia Pacific Laboratory Accreditation Cooperation)

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Quality Management - Basis of Shared Success

APPROVALS

ISO 9001 & ISO/TS 16949

ISO 14001

OHSAS 18001

Safety Assurance

Drinking Water & Food Contact Compliance

Laboratory Quality Certification

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KEPITAL® – Enabling High-Performance Applications

KEP touches the lives of mankind through its latest engineering developments in various fields relating to consumer products, transportation, electrical/electronics and other industrial products.

AUTOMOTIVE

High mechanical properties

High fatigue resistance

Long-term dimensional stability

Excellent fuel resistance

Excellent creep resistance

CONSUMER

Toys

Zippers and buckles for clothing and bags

Bed spring element

FLUID

Water meter

Parts in sanitary systems

Irrigation system

MEDICAL

Components of medical devices

Insulin pen

Infusion device

INDUSTRIAL

Conveyor belt

Semi-finished products

AUTOMOTIVE

Fuel pump module

Window regulator

Door latch

Heating, ventilation and air conditioning

Speaker grille

Sealt belt module

Fastener

ELECTRICAL & ELECTRONICS

Door latch for microwave

Gears for printer

Motor parts

Conveyor belt

Wiper Speaker grille

Gears for printerSeat belt retractor cover

Fastener

Toilet system part Insulin pen

Water meter

Buckles

Water pump impeller

Bed spring element

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Research Center Technical Service

At KEP, the customer always comes first. We offer customers technical support starting with material analysis through to optimization of mass production.

We provide customers with solutions to critical problems through a precise understanding of their needs. KEP is also equipped with various analytical capabilities available for conducting efficient polymer research. We have always been close to our cus-tomers and also strive to be their best resource for the future. In order to more closely fulfill the needs of local customers, we established technical service centers in the US, EU and China. We are also planning to expand our technical service network to meet future market requirements.

Our technical service activities include:

• Failure (fracture) analysis

• Troubleshooting and process optimization

• Cost reduction

• Material analysis

• Technical customer seminar

• New process development

The KEP Research Center combines new product development, process research, testing and analysis, application development and technical service for our customers. Our efforts are not confined to the laboratory. KEP works closely with customers to fully understand their applications and to ensure that they obtain maximized benefits from using KEPITAL. By working together, KEP has become a research partner for customers who are then better able to develop new products, improve productivity, and enter new markets.

R&D

The KEP Research Center has developed specific products utilizing diverse technology from its related industries. We study market needs and research trends relating to engineering plastics. Moreover, we integrate our technologies for material development, molding, and secondary processes based on the core technology. KEP has developed various products to meet diverse customer needs.

Application Development

Good product design is not achieved by accident. It is the result of a comprehensive engineering approach. By anticipating customer needs and market trends, we are able to offer the best solutions at the right time. By constantly refining our technological exper-tise, we help our customers to be best in class within their businesses.

The most effective application development process involves the material suppliers at the beginning in order to utilize their knowledge. We can assist customers with deciding on the geometry of the part and with determining how to maximize functional integration and minimize the production cost.

Our technical services include design technology, CAE analysis, molding technology and product performance evaluation.

Our product support activities include:

• Material recommendation and new material developments

• Feasibility studies

• Durability and functional tests, etc.

• Part design, tooling consulting

• Computer-aided engineering (CAE)

1988 1995 2005 2010 2014

Close to the Customer

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Facts and Figures

KEP has come a long way since it was established in 1987. The KEPITAL brand has shown remarkable growth. Starting out as a local Korean supplier, KEP has become one of the world’s largest POM produc-ers. Since start of production in 1988, production capacity has increased more than tenfold and the market offers high potential for further expansion. As production capacity has increased, the utmost importance has been placed on establishing com-prehensive measures for quality control and quality enhancement.

KEP has a strong market presence around the world.Around 35% of KEP’s products are sold in Korea, 25% in China and 10% in other Asian countries. Twenty percent are exported to Europe and 10% to the Americas.

Metal substitution, weight reduction, functional integration and more cost-efficient processing are the main goals of product optimization in many industries. Engineering resins, especially POM, play a key role in achieving these factors. No motor vehicles roll off their production line without containing POM. Other important applications for KEPITAL include general industry, mechanical engineering, household appliances, fluid handling and electrical/electronic components as well as components for medical devices.

KEP operates a number of sites in Korea, including its headquarters in Seoul, a research center in Gunpo and manufacturing plants in Ulsan and Pyeongtaek.

As KEPITAL evolved into a global brand, we system-atically developed our own distribution organizations. KEP always seeks close proximity to its customers to guarantee comprehensive technical support and reliable logistic services.

In 2002, KEP Americas, LLC was formed and custom-ers are served from its offices.

In 2003, KEP Europe GmbH was founded in Wies-baden, Germany. Based in the heart of Europe and Germany, our staff manages the comprehensive distribution network to serve customers in virtually all European countries, the Middle East and Africa.

In 2004, we set up our KEP China sales organization based in Shanghai to gain closer proximity to our customers in this emerging market.

SITES AND DISTRIBUTIONKEP HEADQUARTERS: SEOUL/KOREA

Research Center: Gunpo

POM Plant: Ulsan

Compounding Plant: Pyeongtaek

KEP AMERICAS

HQ: Dallas/USA

USA, Canada, Mexico, Central America, South America

KEP EUROPE

HQ: Wiesbaden/Germany

Europe, Middle East, Former Soviet Union, Africa

KEP CHINA

HQ: Shanghai/China

PTM Plant: Nantong/China

China, Hong Kong, Taiwan

Korea

Americas

Europe

China

Capacity growth

OTHER ASIA 20%

CHINA 25%KOREA 35%

EUROPE 20%

AMERICAS 10%

Global sales

Fields of applications

AUTOMOTIVE 40%

E&E 20%

INDUSTRIAL 17%

OTHERS 10%

CONSUMER 10%MEDICAL 1%FLUID 2%

DALLAS, TEXAS, USA

WIESBADEN, GERMANY

ShanghaiCHINA

NANTONG SHANGHAI

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NUMBER OF EMPLOYEES

~ 300

TOTAL REVENUE

~ USD 290 million

SeoulGunpo

Pyeongtaek

Ulsan

SOUTHKOREA

SEOULULSANGUNPO

PYEONGTAEK

A global company through the creation of socially sustainable trust

KEP believes that sustainable management can help provide a better future for society, while increasing our stewardship of the environment and growing the economy. As a result, KEP adopted a code of Ethical Management Conduct for executives and their staff members in 2003.

KEP believes in a corporate management philosophy of sustainable management.

This policy has three core values:

• commitment to high-quality processes and products

• focus on environmental stewardship

• desire to maximize our human capital in terms of health and human safety

This corporate philosophy forms the basis for our mot- to ‘For a Better Future’, as we continuously work with our customers and stakeholders to help deliver a better future for humankind. By following our core values, we aim to generate healthy growth for the company.

Through continuous innovation and creation of new values, KEP will be the premier chemical company providing humanity with solutions for a better future.

KEP is a socially responsible company that constantly takes action to make the world a better place for those in need. We developed the community service program in 2004 and have taken numerous steps since then.

Community Service Activities

Each KEP executive and their team perform 20 hours of community service each year. In addition, nine community service groups collaborate with social welfare organizations to provide a kitchen and meal service for homeless individuals periodically through-out the year.

Other KEP community activities include preparing meals for distribution to senior citizens who live alone and children who run their households, as well as providing additional support to neighbors who need a helping hand.

Donation System

By sharing corporate profits, and through generous donations by our executives and staff members, KEP is helping to bring about a better future for society.

Donations are made to community service organi-zations that run treatment centers for senior citizens with no one to support them and free meal centers for the needy.

Education is important to KEP, too, as a portion of our donations is directed to social welfare centers for the Dream Support Fund which pays private tuition and training fees to enable students to realize their dreams.

Scholarship Support for Promising College Students

KEP promotes communal values and the develop-ment of future industrial technology by awarding scholarships to students who excel in Natural Sciences and Engineering. Scholarships are awarded to children from single-parent families who need financial assistance to earn their degree as well as others who demonstrate exceptional ability in these areas of study.

By helping these students succeed, we promote the development of a stronger industrial technical base in the future.

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KEP – For a Better Future

The code of Ethical Management Conduct for executives and staff:

1. Objectives of ethical management

• Maximize shareholder value through the imple-mentation of effective, well defined management policies and procedures.

• Maximize employee effectiveness and morale through rational managerial practices and proper occupational ethics.

• Maximize our value to society by taking action to improve the lives of others.

2. Performance of transparent and fair job duties

• Treat all customers without discrimination and perform accurate and transparent duties.

• Treat all customers with respect and conduct business in an ethical manner.

• Do not act immorally or unethically.

• Obey all corporate, governmental and ethical laws and regulations.

• Treat all people ethically and fairly, accord them the respect they deserve as fellow human beings.

3. Maintenance of proper ethical relationships with our vendors

• No misconduct such as the giving or taking of bribes, cash loans, negative directions, wrongful placement, requests and preferential treatment will be tolerated.

• To avoid the appearance of impropriety, the acceptance of gifts or entertainment exceed-ing normal and customary levels will not be permitted.

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Corporate Social Responsibility

COMMUNITY SERVICE PROGRAM

Community Service Activities

Donation System

Scholarship Support for Promising College Students

KEP Team after cooking lunch for the disadvantaged

KEP Headquarters KEP Europe GmbH KEP Americas, LLC KEP China

119, Mapo-daero, Mapo-gu, Seoul, 121-720, Korea

Rheingaustrasse 190-19665203 WiesbadenGermany

106 North Denton Tap Road Suite 210-202, Coppell, TX 75019USA

A1905, HongQiao Shanghai Plaza, 100 Zunyi Road, ShanghaiChina

Tel: +82 2 707-6840-8 Tel: +49 (0)611 962-7381 Tel: +1 888 KEPITAL Tel: +86 21 6237-1972

Fax: +82 2 714-9235 Fax: +49 (0)611 962-9132 Fax: +1 888 537-3291 Fax: +86 21 6237-1803

sales@kepital.com sales@kep-europe.com sales@kepamericas.com sales@kep-china.com

service@kepital.com service@kep-europe.com service@kepamericas.com service@kep-china.com

www.kepital.com www.kep-europe.com www.kepital.us

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