1. SC2 cracking furnace These chemical converter units are the Pyrolysis Furnaces Long carbon chain molecules cracking to smaller parts in the special alloy tubes in the radiation zone (800 – 850 °C)

2. SC-1 block diagram

3. Information about polymer units of TVK „…locally large, but globally small, …how can we do anymore? „

4. Basic behavior of polyolefin units Cyclical industry with frequent transitions on a dynamic market TVK’s PP in 2012 PP-3PP-4 Average cycle lenght~33 days~31 days Reactor grades10~1117~18 Final product2429 Nr. of transitions/cycle9~1016~17 Off-spec. ratio1,1%0,1% Transition grade ratio2,3%1,7% TVK’s PE in 2012 PE-1/LD2PE-1/HD1PE-2 Average cycle lenght ~24 days~28 days~30 days Reactor grades797 Final product1110~1110 Nr. of transitions/cycle 64/line6 Off-spec. ratio5,1%1,8%1,07% Transition grade ratio 0,8%0,2%*0,3%* * Transition grades were created in Q4, 2012 PP4 PP3

5. TVK’s polymer technology review The „troops” that we have

6. PolyPropylene PP: linear polymer built from propylene and in some cases contains also ethylene Tradename: Tipplen (TVK) (C2: 0.5-6.5%) (C2: 5-25%) Three main types: homo PP, random copolymer PP (C2: 0.5-6.5%) and block copolymer PP (C2: 5-25%) Properties: Melt index: 0.2 - 80g/10 min (230 o C/2,16 kg) C2 content: 0.5 – 20wt% Melting range: 140 – 165 o C Licensors: PP3; PP4: LyondellBasell / Spheripol (loop Rx with monomer as diluent)

7. PP-3 Unit – 100 KTA (1989) PP-4 Unit – 180KTA (1999)

8. Spheripol PP advantage-disadvantage Bulk Loop vs. Gas phase reactor technology  Higher CAPEX  Easy Temperature Control at Reactors  Shorter Grade Transition Time  Narrower Product Portfolio (It means lower C2 content random PP, TPO grades)  Lower Volatile Content in PP (Just at CR grades)  Better Catalyst Activity

9. Low Density Polyethylene LDPE technologies: autoclave/tubular reactor LDPE-2 Plant started in 1991. Annual capacity: 65 kt Product Tradename: Tipolen Density: 0.919 – 0.925 g/cm 3 Melt index: 0.2 – 4.6 g/10 min (190 o C/2.16 kg) Main application: film blowing Licensor: LyondellBasell LDPE technologies: autoclave/tubular reactor LDPE-2 Plant started in 1991. Annual capacity: 65 kt Product Tradename: Tipolen Density: 0.919 – 0.925 g/cm 3 Melt index: 0.2 – 4.6 g/10 min (190 o C/2.16 kg) Main application: film blowing Licensor: LyondellBasell tubular autoclave

10. LDPE tubular vs. autoclave

11. Shematic process of LDPE-2 Plant

12. High/Medium Density Polyethylene HDPE/MDPE: Polyethylene having only short chain branches on the linear main chain Tradename: Tipelin (TVK) Properties: Density: 0.935 – 0.965 g/cm 3 Melt index: 0.1 - 50 g/10 min (190 o C/2,16 kg) Melting range: 125 – 135 o C Licensor: PE1/ HDPE-1: Chevron Phillips (loop Rx with light diluent) PE2 / HDPE-2: Mitsui Chemicals Inc. (stirred tank Rx with heavy diluent)

13. PE-1/HDPE-1 Unit – 200KTA (1986) Treaters ethylene isobutane hexene-1 hydrogen Loop Reactor (90 – 106°C; 42barg) Flash Tank (60°C; 0,3barg) Cyclon e Bag Filter Dryer (70°C) Purge Column (75°C) HDPE fluff to powder silos Flash Gas to recycling system Powder Silos (8pcs) Homogenizer Additives Silo farm (28 silos) Bagging machines (2 lines) Truck loading facility Continuous Intensive Mixer (CIM) Repellet Extruder (210°C) Dryer Classifier Scales HDPE pellets

14. PE-2 / HDPE-2 Unit – 220KTA 2004 Termék H2H2 Comonomer Centrifuge Dryer / 105°C Powder Silo Pellet Silo TEAL Solvent tank Homogenizer Daily tank Mixing silo Low Polymer (LP) VOC: ~33 -> 0,1wt% 2/3 1/3 Fresh solvent Packa- ging R1: 85°C/7bargR2: 75°C/2.5barg 220°C

15. Advantages, disadvantages in the HDPE units PE-1/HDPE1 vs. PE-2/HDPE-2  Less rotation maschine - Higher reliability  Excellent diluent recovery  Broad density range (0,962-0,935)  Lower catalyst costs  Less steam consumption  Lower volatile content (instead of MDPE)  MI correction in the extrusion section  Higher electricity consumption  Just monomodal products  Longer transitions  Lower flexibility  Wider product range (mono and bimodal)  Shorter grade transition time  High flexibility  Lower pressure in the reactor part  Start and stop without flaring  Lower ESP in the extrusion section  Possibility to use C3- instead of purchased co-monomer  Higher steam consumption in the diluent recovery section  Higher specific diluent consumption  Higher volatile content  Higher maintenance costs

16. Process Control - Optimization Try to find…. …keep it… …automate it.

17. General process control scheme APC DCS Basic Control level Process – Field level

18. Optimization 3 basic rules: 1 – Safety 2 – Quality 3 – Economic goals The economical situation forces the polymer producers to find „new operating region”, and they would be able to adopt new technics to remained there in every different workpoints. Weak demand

19. APC the most common tool for optimization  The APC is not a „magic weapon”. This is that tool wich can help us to keep the plant near to the optimum continuously if the operators are familiare with that.  The two most critical behaviors of a polymer plant: Non-linearity, multivariable

20. Thank you for your kind attention!