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Overview of Use of CompositesIn China Automotive Industry

2007 SPE Automotive Composites Conference &

Exposition

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Fiber-Reinforced Plastic Composite Material in China -

Total Production of Fiber-Reinforced Plastic: 1.2 MM MT ( ~2.6 Billion Lbs.)

• Construction Industry;• Container and Piping;• Industrial Equipments;

• Transportation and Automotive;• Electronics;• Consumer products

Construction

40%

Tranaportation

and Automotive

6%

Electronics

10%

Industrial

Equipments

15%

Container/

Piping

24%

Consumer

Products

5%

Thermoset

87%

Thermoplastic

(incl. Plastic

Compound)

13%

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Composite Materials in China Automotive Industry -

Exterior Applications: (~30,000 MT’s)

• FRP - bumper, front side, rear fender, Roof and etc.• GMT - bumper beam, battery box, underbody shield, spare wheel tub

• LFT - front end frame, underbody shield

FRP

73%

GMT

26%

LFT

1%

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Composite Material in China Automotive Industry -

Interior Applications: (~31,000 MT’s)

• LRT -FG Reinforced Thermoplastic - headliner, parcel shelf, sunshade • FG Reinforced PU foam - headliner, • Wood Grain Filled Thermoplastic - Door panel, Parcel shelf

• Natural Fiber Reinforced Thermoplastic - Headliner, Side/rear wall panel, • Phenol Resin Composite - Headliner, parcel shelf • PUR - Instrument panel, Sunshade

Others

7% PU Foam/FG

Composite

16%

PP/FG

Composite

7%

Phenol Resin

Composite/

Others

5%

Polywood

Composite

45%

Kenaf Fibre

Composite

19%

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Latest trends for Interior Materials In China:

• Mechanical performance• Cost• Odor and VOC

• Weight• Moldability for Design & Style

1. Natural Fiber reinforced thermoplastics are being challenged for interior applications - moisture wicking characteristics and odor

2. Wood Grain filled thermoplastics do not support part mass reduction and have

lower strength/weight ratios3. Fiber Glass Reinforced Thermoplastics are growing

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Highs & Lows of Composite Material Converters in China

Highs -• Cost Control Efficiency• Quality Control efficiency• Flexibility

Lows -• Product Development Capabilities• Engineering Support Capabilities• Technology Development

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Doing Business in China

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China GDP (in Trillion RMB)

8.0%10.7%

10.4%

10.1%

10.0%9.1%

8.3%8.4%

7.6%7.8%9.3%10.0%10.9%

13.1%14.0%

0

5

10

15

20

25

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

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Annual Auto Build in China (Millions)

14%

27.3%

12%14%

35%

0123456789

2003 2004 2005 2006 2007

0%1%

JPN

“Asian” Region Growth 2005 to 2009

5%7%

15%19%

26%29%

41%52%

70%12%

WE

AME

KOR

AUS

TWN

MYS

EE

THA

CHN

INDIA

TOTAL

China Automotive Growth:

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Top 10 OEMs and production in 2006: (Units x 1000)

1. Shanghai GM 4132. Shanghai Volkswagen 3523. FAW Volkswagen 3504. Chery Auto 300

5. Beijing Hyundai 2806. Guangzhou Honda 2607. Geely Auto 2058. DongFeng Peugeot/Citroen 2009. Brilliance Auto 20010. Changan Ford/Mazda 194

60% Passenger Vehicles built in China

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BeijingHyundai: 280K

DCX: 100K Daimler: 20K

TianJin:Toyota: 200K TJ XiaLi: 190K

Wuhan:PSA: 200KHonda: 100K

ChongQing:Ford: 190KChangan Auto: 500K

Guangzhou:Toyota: 200KHonda: 320K

Nissan: 300K

Shanghai:GM: 400KVW: 350KShAuto: 100K

Wuhu:Chery: 400K

ChangChun:VW: 350KFAW Auto: 150K

Major Locations and OEMs in China

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1.0-1.6 L

31%

SUV

5%

>/=2.5L

2%

Van/MPV

5%

1.6-2.5 L

23%

Micro Van

23%

</= 1.0L

11%

China Automotive Market -

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• Lower System Costs

• Lower Part Weight• Available Locally

Materials Converters

• Recyclable Applications • Design Freedom

China Auto Market Needs for Composite -

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Key Elements to be successful in China

1. Technology & Local Support2. Engineering Capability in the Region

3. “Relationship” / Partnerships with OEM’s4. Sales & Service

5. “Flexibility”

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Thank You SPE and the Attendees of the 2007SPE Automotive Composites Conference & Exposition