Innovation for Sustainability

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Indorama Ventures – A Leader in Polyester

Dedicated to Polyester World Wide

 Global Polyester Fiber and PET Producer

− 4 million tons PET per year - 17% global capacity share
− High-Value-Added PET for specialty applications
− Commodity and high-value-added polyester fibers
− Innovation for Sustainability in products and business

 Backward Integrated to grow Polyester

− PTA and EG feedstock integration
− 7.3 million tons total capacity in 55 facilities, 19 countries, 4 continents
− 6.2 million tons production including PTA/MEG/PET

 Key Figures: 2014

− Revenue: $7.5 billion - 6% Growth
− EBITDA: $600 million - 30% Growth
− Employees: >14,000

Note: “LTM” is last twelve months

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Global Manufacturing Presence 2013

Rotterdam, Bobingen & Guben,

Workington, UK Klaipeda, Lithuania Wloclawek, Poland
Netherlands1 Germany4
• PTA: 350kT • PET: 155kT • Polyester fibers: 120kT • PET: 198kT • PET: 140kT
• PET: 200kT • PTA co-location with PKN

Asheboro, USA
Lopburi, Thailand
• PET: 225kT
• PET: 180kT
• Preforms: 965m, bottles:
405m, closures: 1,575m
Spartanburg, USA

• PET & Polymers 400kT

• Polyester fibers: 70kT
Kaiping, China

• PET& Film Grade Chips:

Decatur, USA
276kT
• Textile grade: 130kT
• PET: 432kT
• Virtual PTA integration with BP
Nakhon Pathom,
Thailand
Queretaro, Mexico
• Polyester fibers: 101kT
• PET: 480kT
• Polyester fibers: 55kT

Port Harcourt, Rayong, Tangerang & Map Ta Phut,

Ottana, Italy2
Nigeria3 Thailand Karawang, Indonesia5 Thailand
• PTA: 192kT • PET: 75kT • PTA: 700kT • PET: 86kT • PTA: 540kT
• PET: 150kT • Polyester fibers: 110kT • PET: 108kT
• Polyester fibers: 144kT

1. Under expansion from 200ktpa to 390ktpa. Expected to come online in 2012 Integrated PTA/Polyesters
2. 50:50 JV between IVL and PCH Holding SRL Co-located PET/Fiber
3. Under construction and expected to come online in Q4 2011
Standalone
4. 75:25 JV between IVL and Sinterama
5. Polyester fiber capacity to be expanded by 300kT by 2013

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Packaging Resins - North America

Hot-Fill OxyClear® Barrier PET Liquor / Custom

Polyclear® Preserve PET 2201 OxyClear® Shield PET Polyclear® Crystal PET 3302
Preformance® PET 1708HS Preformance® PET 1708CC

Water CSD Up to 25% PCR Content

Polyclear® Splash PET 3301 Polyclear® Refresh PET 1101 FuTuRe-PET® Resin
Preformance ® PET N2R Preformance ® PET ES11

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Reinventing Extrusion Blow Molding

EBM PET
for extrusion-blow-molding
containers with handles
that can be recycled with PET
Resins for Extrusion Blow Molding
Larger containers and containers with handles can require extrusion
blow mold processing
• Higher melt strength required for continuous polymer melt extrusion
Typical applications
• Food and beverage containers
• Household cosmetics and consumer products
• Automotive and industrial packaging
• Containers requiring excellent clarity and gloss
Typical materials used today
• HDPE: Widely used - Easy to extrude – Colored/opaque containers
• PETG: Crystal-clear – More difficult to process – Recycling challenge
• PVC: Fair clarity – Good melt strength but difficult to extrude
• PP/EvOH/PP: Opaque - Oxygen barrier – Can use regrind

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EBM PET Potential in North America

Products in EBM Containers that could

be converted to EBM PET containers Estimates [MM lbs.]
Liquid Food Bottles (incl. milk) 400
Household Industrial Chemicals 375
Pharmaceuticals/ Cosmetics 85
Motor Oil Bottles 15
Other 125
Total 1,000

Polyclear® EBM PET can address and potentially improve

sustainability of about 1 billion pounds of EBM material:
 HDPE: 825 million pounds - Out of 4.5 billion pounds EBM total
 PP/EvOH/PP: 100 million pounds - Hot fill requires higher heat deflection
 PETG: 50 million pounds - Orange Juice/Water – in progress
 PVC: 25 million pounds - Various

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The EBM PET Revolution …

… for crystal-clear containers with and w/o handles

that can be recycled with PET
A revolutionary PET resin for extrusion-blow molding
1. High melt strength for extrusion blow molding process
 Can be processed on existing equipment with minor modifications
2. Containers can carry the resin code “PETE 1”
 It is a semi-crystalline PET with high melt point
3. Can be recycled with standard PET
 Obtained APR critical guidance recognition
4. Oxygen permeation similar to PET
 Higher barrier compared to existing EBM resins
5. Ideal for containers with handles
 Glass-like clarity and high gloss

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PETE 1 & APR Critical Guidance Recognition

EBM PET
for extrusion-blow-molded
containers with handles
that can be recycled with PET
A Semi-Crystalline PET = “PETE 1”
 Polyclear® EBM PET 5505 is a PET with physical properties very
similar to regular PET and can carry the “PETE 1” resin code

 Semi-crystalline polymer
with high melt point
 Material can be dried at
PET conditions
 Melt temperature similar
to standard PET with an
IV of approx. 1.0 dl/g

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APR Recognition for PET Recycling

+
APR, the Association of Postconsumer
Plastic Recyclers, is pleased to recognize
Indorama® Ventures’ Polyclear® EBM PET
5505, as meeting or exceeding the APR
PET Critical Guidance Document
protocol.

In addition, Indorama has successfully

completed the testing protocol for bottle to
bottle, to sheet, to strapping, and to fiber
recycling at PTI and is expecting the APR
recognition at the October review meeting

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 Market Success

 Tropicana orange juice in 89 and 118 oz. containers with handles

 Replaced white HDPE jugs to allow for clear transparent container
 Container show good clarity and drop performance
 Market roll out in 2013 was a great success
 Containers have APR Critical guidance recognition and can be fully
recycled within the PET PCR stream

 Converting remaining containers with handles for orange juice

o Replace white HDPE jugs to allow for clear transparent container
o Replace PETG to allow for recycling with PET PCR

 Expanding applications require additional functionalities

• Improved drop performance
• Higher Heat deflection for hot fill applications

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Expanding PET Extrusion Blow Molding

EBM PET 5507

 5507 is a slightly modified 5505 with higher IV
 Significantly better drop performance, clarity and gloss
 Improved and easier processing on shuttle machines
 Similar in APR Critical Guidance Testing
 Improved Initial Drop with Reduced Aging

Bruceton Drop Heights

PolyClear® EBM PET 5505 5507
72
66
60
54
48
42
36
30
24
1-Day 7-Day 14-Day 21-Day 28-Day 60-Day
 Significant better initial drop on larger filled bottles maintained over shelf life
 25% higher initial drop and 40% after 60 days due to lack of aging
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APR Critical Guidance Recognition

EBM PET 5507

We request APR to review the critical
guidance data developed by PFE and
issue a recognition letter
Pellet IV after Second Heat Cycle
The IV drop of Polyclear® EBM PET 5507 blends in extruded pellets is
within the requirements of the critical guidance of APR
 Extruded pellet IV’s of Polyclear®
EBM PET 5507 blends with PET are IV Drop -Extruded Pellets [dl/g]
higher than pellet IV’s of standard PET
after 2 heat cycles 0.070

 IV drops of the extruded pellets were 0.060

within the specification requirement 0.050
0.040
IV of Extruded Pellets in dl/g 0.030
0.840
0.020
0.820
0.800 0.010
0.780
0.760 0.000
0.740 100% PET 25% EBM PET 50% EBM PET
0.720 Control In PET Control in PET Control
0.700
0.680
100% PET Control 25% EBM PET 50% EBM PET
in PET Control in PETControl

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Solid-State Polymerization

Polyclear® EBM PET 5507 did not require solid stating with standard
PET in the post consumer recycling (PCR) stream due to the high
starting IV

• EBM PET blends and PET control show melting temperatures in the
required range of 235 – 255° C

• Final IV’s of EBM PET blends are within the required IV range of the
PET control with difference of less than 0.04 dl/g after 8 hours

• Final IV’s of EBM PET blends are within the required IV range of the
PET control with difference of less than 0.075 dl/g after 15 hours

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 Color & Haze after 3rd Melt History

Polyclear® EBM PET 5507 meets the specifications for yellowness and
haze in extruded plaques after three heat cycles
• EBM PET blends showed less than 1 unit shift (b*) and meet the specification
• EBM PET blends showed less haze than the PET control
• All plaques shows L* transmission of ~89 to 90 well above the specified 82
Yellowness [b*] Plaques Haze [%] Plaques
3.5 7.00
3 6.00
2.5 5.00
2 4.00
1.5 3.00
1 2.00
0.5 1.00
0 0.00
100% PET 25% EBM PET 50% EBM PET 100% PET 25% EBM PET 50% EBM PET
Control In PET Control in PET Control Control In PET Control in PET Control

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 In Summary
Polyclear® EBM PET 5507 meets the specifications…

• Plastics Forming Enterprise LLC has provided services to evaluate the

recyclability for Indorama 5507 EBM PET Bottles. The Evaluation was
processed according to the APR PET Bottle Critical Guidance Document.

• The Indorama 5507 EBM flake was successful when processed through the
PET recycle stream simulation.

• PFE did not observe any fuming, odd odor generation, sticking or residue
build up during extrusion/pelletizing and injection molding.

• PFE determined the intrinsic viscosity, melting point, color and percent
haze are within the recommended guidelines of the test protocol.

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Disclaimer

NOTICE:

This presentation contains selected information about a specific Auriga

Polymer Inc. product, or group of products, and particular uses of the
same. This presentation does not contain a complete statement of, and does
not constitute a representation, warranty or guaranty with regard to, a product's
characteristics, uses, suitability, safety, efficacy, hazards or health
effects. Purchasers and users of the product are responsible for determining
that the product is suitable for the intended use and that its workers and the
general public are advised of any risks resulting from such use. Nothing
contained in this presentation shall be construed to modify any of the
commercial terms pursuant to which the product was or is sold by Auriga
Polymers Inc. including, but not limited to, terms and conditions addressing
each party's respective rights and obligations with regard to warranties,
remedies and indemnification.

www.indoramaventures.com

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