Tongsuh Petrochemical2014.APR

Introduction to Tongsuh

Sodium Cyanide

Chemicals & Fibers

Asahi Kasei Chemicals

Asahi Kasei Fibers

Homes & Construction Materials

Asahi Kasei Homes

Asahi Kasei Construction Materials

Electronics

Asahi Kasei Microdevices

Asahi Kasei E-materials

Health Care

Asahi Kasei Pharma

Asahi Kasei Medical

Asahi Kasei Corp.Holding company

4 Business Sectors 9 Core Operating Companies

ZOLL Medical

Asahi Kasei Group

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NET SALES (FY’13): US$ 19BIL

NaCN & AN Capacity of Asahi Group

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Ko-rea Japan

ThailandM.East

UNIT:KMT

2012 2014 2017 2012 2014 2017Korea 42 70 70 Korea 315 560 560J apan 10 10 10 J apan 450 200 200

Thailand - - - Thailand 200 200 200M.East - - (40) M.East - - (200)Total 52 80 120 Total 965 960 1160

Sodium Cyanide Acrylonitrile

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Tongsuh`s Products Profile

Propylene

Ammonia

Air

Acrylonitrile

Acrylamide

Sodiumcyanide

EDTA

Acetonitrile

Ammonium sulfate

HCN

NaOH

EDA

Formalin

Liquid NaCNProductBy-productFormalin

By-product

By-product

By-product

Blow-down

NET SALES (FY’13): US$ 1,031MIL

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Production method of NaCN

Compared to on purpose, by-product is more competitive method to produce NaCN

On purpose NaCN maker is under pressure in terms of cost.

Tongsuh Petrochemical has special facility called “methanol injection” to compensate its output loss in case of AN operation cuts.

By-Product On PurposeType AN by product Light Oil and etc.Proportion 30% (Integrated

20%)70%

Cost Comparison Competitive Conventional

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Tongsuh’s Sodium Cyanide

- Shape : Briquette- Size : 32 X 30 X 12.5 mm- Weight : Approx. 13.3g/Briquette- Purity : 98% min.

- Packing 50kg Steel Drum 1mt Wooden Box

- Transportation by Container According to IMDG code Class 6.1 UN No. 1689

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Sodium Cyanide Packing

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Tongshu LocationSeoul

Head Office

Busan PortUlsanPlant

Seoul to Ulsan 300kmBusan to Ulsan 50km

Busan, South Korea's largest port city, retains its No. 5 spot in container handling capacity in the world. ( 17,040 thousand TEUs in 2012)

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NaCN Trade to Americas

USA & CANADACapacity 200,000Demand 85,000Balance surplus

Estimated by TSPC

(Unit : t/year)

Mexico &SOUTH AMERICACapacity 12,000Demand 180,000Balance deficit

TSPC&Asahi

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Short BalanceIn Americas