Technology Challenges of Bimodal Polyethylene Markets: The Innovene™ S solution Jean Chabardes Innovene™ S Proposal Manager February 29th 2012

Presentation Outline HDPE Bimodal Markets Innovene S Industrial Solutions for Bimodal PE production Innovene S Bimodal Product Solutions

Innovene S Technology to date HDPE Bimodal Markets 1 1 Section divider slide The ‘section divider’ slide is a useful way of breaking up a presentation. The section divider has been designed to be copied, pasted and renumbered should additional dividers be required. The section divider contains two Innovene Bright Blue blocks of colour, onto which the divider text (30pt Arial Regular) and divider number (72pt Arial Regular) are placed in white. The divider number is always in a fixed position and a maximum of two section divider text lines align to the base of this number (working upwards from the bottom of the text box). This section divider slide is the only slide in the presentation which does not include the Innovene brand mark. Note: This slide does not exist as a ‘slide master’ therefore, it is recommended that you copy and paste this slide into your presentation.

Bimodal HDPE : applications perspective Pipe & conduits market in 2015: World 6.4 Mt Bimodal 3 Mt Film market in 2015: World 11.1 Mt Bimodal 6 Mt Updated figures ? Blow Molding market in 2015: World 10.9 Mt Bimodal 1.2 Mt Based on Nexant 2010 data

Bimodal HDPE : Production capacities growth Today, installed HDPE bimodal capacity exceeds monomodal capacity Bimodal HDPE capacities shows fast growth rate All new capacities with bimodal capability Supress patent stuff. Less message. Main message is: fast growing bimodal capacities. Can we update this with known licenses up to 2015-2017 Nexant ChemSystems data

Future of PE… Commoditization is ahead of us Enormous pressure on production cost Need for differentiation More “green” is likely to be the standard Current and future trends Downgauging, light-weighting (mLL and bimodal HDPE) Only a few new niche markets/applications Green PE, biodegradable PE Recycling solutions

Downgauging = win-win-win Film WIN : for the converter who buys less material WIN : for the producer whose margin is higher WIN : for the environment Monomodal Bimodal Pipe Monomodal Bimodal Blow moulding Use less for the same service Monomodal Bimodal

Challenges of plastics consumer ? Waste… Bimodal Products last longer (PE100) Bimodal Replaces other material Bimodal allows to use less material

Bimodal HDPE : US/Canada vs China 2015 bimodal market share of 15 % China 2015 bimodal market share of 30 % Based on Nexant 2010 data Room for more bimodal HDPE in North America !

Challenges of making bimodal HDPE resins Area to populate for maximising product properties % Reduced impact Strength, fumes Processability, stiffness Matrix ESCR and creep resistance Mechanical strength Melt strength during extrusion Bubble stability Comonomer No sagging Bimodal = tunable MWD and SCB Molecular weight (= polymer chain length)

Innovene S Technology to date Innovene S Industrial Solutions for Bimodal production 1 2 Section divider slide The ‘section divider’ slide is a useful way of breaking up a presentation. The section divider has been designed to be copied, pasted and renumbered should additional dividers be required. The section divider contains two Innovene Bright Blue blocks of colour, onto which the divider text (30pt Arial Regular) and divider number (72pt Arial Regular) are placed in white. The divider number is always in a fixed position and a maximum of two section divider text lines align to the base of this number (working upwards from the bottom of the text box). This section divider slide is the only slide in the presentation which does not include the Innovene brand mark. Note: This slide does not exist as a ‘slide master’ therefore, it is recommended that you copy and paste this slide into your presentation.

The Foundation of Innovene S Slurry Loop Technology Unique Swing Ziegler/ Chromium/ Bimodal operations at all our customers Dual Loop reactors deliver bimodal process with accurate control and broad differentiation Leading products for all HDPE Monomodal and Bimodal market segments Low Variable and Investment costs Innovene™ S The Leading HDPE Technology Innovene S: The Leading HDPE Technology

Innovene S Process Technology Catalyst feeding system Intermediate Treatment Monomer Co- Monomer Light Diluent Monomer Some competitors are advertising full capability but their difficult products cost a FORTUNE in catalyst As such they are not competitive or realistic Co- Monomer Light Diluent Innovene S : two reactors with independent control and process conditions

Benefits of Innovene S dual reactors design Intermediate Treatment Each reactor controlled independently in terms of: MI Density at least 5 degrees of freedom Relative production Molecular weight distribution tuned by the process = infinite flexibility in the molecular design

Innovene S Bimodal operations Use of modern INcatTM Ziegler catalyst Easy and independent control of each reactor: Temperature Composition Fast process and product transition with minimised transition polymer UNIQUE and routine operations in monomodal and bimodal

Innovene™ S : Technology flexibility High Activity catalyst Excellent activity profile: natural access to bimodal products and to high productivity performance Same Ziegler catalyst gives access to a wide product mix covering Monomodal and Bimodal grades Use C4 or C6 comonomer HD / C4 or C6 Mono- & bimodal Ziegler catalyst INcat MT platform HD C6 Cr catalyst

Innovene S: Low CAPEX Polyethylene Technology Innovene™ S CAPEX Benchmark for Bimodal processes Based on third party 2010 data Innovene S dual reactor capex close to leading single reactor design ISBL cost of a 400 kt/yr line in Gulf Coast Based on Nexant 2011 data Innovene S: Low CAPEX Polyethylene Technology

Innovene S: OPEX cost leader Innovene™ S OPEX Benchmark for Bimodal processes Based on third party 2011 data Efficient recycling system Standard Zeigler catalyst Competitive process guarantees Based on Nexant 2011 data Innovene S: OPEX cost leader

Innovene™S Product Solutions 3 Section divider slide The ‘section divider’ slide is a useful way of breaking up a presentation. The section divider has been designed to be copied, pasted and renumbered should additional dividers be required. The section divider contains two Innovene Bright Blue blocks of colour, onto which the divider text (30pt Arial Regular) and divider number (72pt Arial Regular) are placed in white. The divider number is always in a fixed position and a maximum of two section divider text lines align to the base of this number (working upwards from the bottom of the text box). This section divider slide is the only slide in the presentation which does not include the Innovene brand mark. Note: This slide does not exist as a ‘slide master’ therefore, it is recommended that you copy and paste this slide into your presentation.

Innovene™ S HDPE Product Coverage Application Type Innovene™ S Film HDPE  Bimodal HDPE Blow Molding Medium Mw Cr High Mw Cr Bimodal Injection Molding Monomodal Pipe & Conduits Non pressure PE80 PE100 bimodal Textile Monofilament Tape Others W&C Geomembrane Rotomolding A complete HDPE offer covering all applications

Only Bimodal grades comply with ISO PE100 requirements Pipe and PE100 example Pressure Pipe Market is very demanding and technical. Main applications : gas and liquid transportation Special requirements for: Resistance to pressure Resistance to temperature Resistance to crack propagation Aging : long lasting applications PEX PE100 Movies Only Bimodal grades comply with ISO PE100 requirements SPC

Full Bimodal product Range with high Performance Innovene™ S Bimodal Strength INEOS Bimodal process and catalysts advantage Improved rheological behaviour of products Bubble stability , die swell , melt strength , extrudability Increased flexibility in bimodal architecture PIPE PE100+ low sag Large diameter pipe FILM Enhanced toughness and processability Thin film Small Blow Moulding Enhanced impact and ESCR Light weighting Injection moulding Enhanced ESCR Light weighting Full Bimodal product Range with high Performance

Conclusions 4 Section divider slide The ‘section divider’ slide is a useful way of breaking up a presentation. The section divider has been designed to be copied, pasted and renumbered should additional dividers be required. The section divider contains two Innovene Bright Blue blocks of colour, onto which the divider text (30pt Arial Regular) and divider number (72pt Arial Regular) are placed in white. The divider number is always in a fixed position and a maximum of two section divider text lines align to the base of this number (working upwards from the bottom of the text box). This section divider slide is the only slide in the presentation which does not include the Innovene brand mark. Note: This slide does not exist as a ‘slide master’ therefore, it is recommended that you copy and paste this slide into your presentation.

Conclusions Bimodal HDPE demand is increasing and represents a solution towards sustainable developments. Innovene™ S is the leading Technology to manufacture and develop bimodal products due to: product design flexibility easy operations leading economics extended bimodal products coverage Proven technology transfer Innovene™ S : THE leading industrial technology for developing PE Bimodal markets worldwide

Thank you !