New Opportunities in the FSU Polymer Industry

“Growth is accelerating for Ukrainian distributor Dipol as it gears up to take advantage of the region's booming consumption of cars and desire for better quality”

(ICIS Chemical Business, 17 December 2007)

Introduction of specialties to FSU market

§  1990-2005 - technological and scientific stagnation of FSU countries after collapse of SU created a demand in specialties

§  First specialties (import): HDPE 100, HIPS with high ESCR, high gloss HIPS, packaging and reduced pentane grades of EPS, HSR, barrier PET, PU systems

§  2005-current: new developmental projects

§  Old specialties: HSR, barrier PET

§  New specialties: EPP, grey EPS

Implementation of novelty polymers

JV “Tribo” Dipol - Nord §  Novel PU foam formulation; §  Reduced penthane EPS packaging; §  Epoxy powder coatings JV “Dipol Auto” Dipol – ZAZ - Schlaadt §  EPP articles manufacturing

Shale Gas Revolution “Shale gas is the most important energy development since the

discovery of oil“

The U.S. Chemicals Industry becomes Ultra-Cost Competitive

Ethane currently accounts for 64% of US ethylene.

US Ethylene Production Sources (2004-present)

Market Price of Ethylene in the US in September, 2012 – 57¢/lb

Costs of Ethylene production on shale gas Ethane basis in the US in September, 2012 – 30¢/lb

Who is printing money now?

Chevron Phillips Exxon Mobil LyondellBasell Westlake Chemical

Softell polypropylene (PP) compound (LyondellBasell)

Diether and succinate fifth generation non-phthalate catalysts for polypropylene production (LyondellBasell)

The latest Innovations

Application: spun-bond fiber, high melt flow impact copolymers and random copolymer, BOPP, raffia grades; Advantages: complements the range of Ziegler-Natta PP catalysts

Application: automobile interiors with exceptional scratch resistance; surface aesthetics and soft-touch qualities; Advantages: eliminating coating requirements; cost savings; improves recycling potential

New non-phthalate six generation catalyst for polypropylene production (W.R. Grace & Co. + DOW Chemical)

Application: films, high-performance pipe, automobile parts, household appliances and household containers; Advantages: clarity, stiffness and impact strength; improves plant productivity

Top 100 Chemical Companies 2012

1.  BASF 2.  Sinopec 3.  ExxonMobil 4.  Dow Chemical 5.  LyondellBasell Industries 6.  SABIC 7.  Shell 8.  Mitsubishi Chemical 9.  DuPont 10.  INEOS 88. SIBUR

Thank you!