1. The Best Practice on the Reduction of Plastic Waste Development of New Recycling System for Used Plastics Kazuyuki Hirabayashi Showa Denko K.K. (Japan)

2. About Showa Denko K.K. Showa Denko Group (at December 2005) Number of Group Companies 155 Net Sales (Consolidated) 740.7 billions of yen Operating Income (Consolidated) 52.1 billions of yen Net Income (Consolidated) 7.6 billions of yen Number of Employees (Consolidated) 11,166 Major products Petrochemicals Sector (Olefins, Organic chemicals, Polyolefins, Plastic products) Chemicals Sector (Chemicals, Gases and Specialty chemicals, Specialty resins) Electronics Sector (Hard disks, Compound semiconductors, Rare earth magnetic alloys, Specialty gases for semiconductor processing, Electroceramic materials, Fine carbons and other electronic materials) Inorganic Materials Sector (Ceramics and Carbons) Aluminum Sector (Aluminum metal, Sheets, Extruded products, Fabricated products, building materials, engineering and others)

3. About Showa Denko K.K. Domestic Facilities Oita ComplexOmachi Plant Higashinagahara Plant Chiba Plant Kawasaki Plant Yokohma Plant Chichibu Plant Tokuyama Plant Oyama Plant Hikone PlantSakai Plant Kitakata Plant Shiojiri Plant

4. About Showa Denko K.K. Global Subsidiaries Overseas Production Companies P.T. Showa Esterindo Indonesia Taiwan Showa Chemicals Manufacturing Co., Ltd Showa Denko Carbon, Inc. Lianyungang Zaoling Abrasives Co.Ltd. SHOTIC Europa -Industria de Aluminio Lda. SHOTIC (Singapore) Pte. Ltd. Showa Aluminum Corporation of America Showa Aluminium Czech s.r.o. Showa Aluminum (Thailand) Co., Ltd. P.T. Showa Aluminum Indonesia Showa Aluminum Manufacturing Philippines Corporation Baotou Showa Rare Earth Hi-tech New Material Co., Ltd. Showa Denko (Dalian) Co., Ltd. Showa Denko HD (Malaysia) Sdn. Bhd. Showa Denko HD (Singapore) Sdn. Bhd.

5. Activity Guidelines regarding Responsible Care (Showa Denko, 1995) (1) In the total life cycle of chemical substances, we should make our best effort to review and improve the business activities from the viewpoint of ensuring safety / health and protecting the environment. (2) In the manufacturing activities, we should make best efforts to reduce the burden on the global environment not only by conventional approaches to environmental protection but also by promotion of raw material switching, energy conservation, wastes reduction and recycling, and reduction in the release of chemical substances. (3) In new product development, new business development and establishment / increase / renewal of facilities, we should make our best effort to ensure safety / health and protect the environment. (4) We should promote R & D and technology development which will contribute to the improvement of safety / health and protection of the environment. We should also promote marketing of alternative or new products. (5) We should investigate the influences of the products and materials we handle on Safety / Health / Environment, and encourage our employees to have deep knowledge related to safe use and handling, and also provide our customers with such information. (6) In overseas business activities, technology transfer and international trading of chemical products, we should give full consideration to ensuring safety / health and protecting the environment. (7) We should comply with the international rules and domestic laws and regulations and make our best effort to cooperate with the relevant international organizations and foreign / domestic administrative agencies. (8) We should positively participate in various activities related to environmental protection and make our best effort to communicate with society and communities for better understanding and trust.

6. Showa Denko Kawasaki Plant

8. Chemical Recycling of Waste Plastic for Ammonia Production

9. Chemical recycling(3 ％ ) Liquefaction Blast furnace feed Coke oven feed Material recycling(15 ％ ) Thermal recycling(37 ％ ) Incineration without power generation(18 ％ ) Landfill(28 ％ ) Perfect Chemical recycling Recycling as chemical raw materials （ H2,CO,CO2,Cl,S, etc. ） Gasification Waste Plastics (10mil ton/year) Waste Plastics recycling and disposal in Japan

10. 計画地 Location 凡 例 Pre-treatment gasification Kawasaki plant Ｎ Ammonia plant

11. 195T/D 175T/D (1) Scale (2) Plant plot (1)Pre-treatment plant Showa Denko K.K. kawasaki plant Area ； ６, ５９０ｍ ２ (2)Gasification plant Showa Denko K.K. kawasaki plant Area ； ７, ４００ｍ ２ SHOWA DENKO PLANT ・ Hydrogen 346,000Nm3/D ・ Waste plastics ・ Ammonia

12. Waste Plastics treatment process flow Recovered Metal Law- temperature gasifier Scrubber Neutralization Slag treatment De-sulfur CO shift Gas Compressor High- temperature gasifier Construction materials Caustic soda raw materials Sodium sulfite (NaHSO 3 ) Dry ice Liquefied CO 2 Ammonia Waste Plastics Storage Crusher Separator Feeder Extruder Metal RPF ( Recycle Plastic Fuel ) H 2 business Pre-treatment plantGasification plant RPF Metal Slag NaCl S CO2 H2H2

13. Waste Plastics Pre-treatment plant GasificationScrubberCO shiftDe-sulfur H2H2 CO2 NaClSlag Recovered Metal Boiler Dry ice Liquefied CO 2 Metal Construction materials Slag treatment Caustic Soda Gas Compressor 195T/D 175T/D430T/D Sodium sulfite (NaHSO 3 ) 0.65 T/D8.2 T/D5.8 T/D NaOH Law-temperature High-temperature Component of Waste Plastics (Example) CHONClS Metal SlagTotal 74.210.76.30.42.50.12.9 100wt% 144.720.912.30.84.90.25.6 195T/D Process Flow to produce Ammonia Gas from Waste Plastic Ammonia H 2 business S

14. Japanese Containers and Packaging Recycling System

15. Flow of Containers and Packaging Recycling Consumers The Japan Containers and Packaging Recycling Association Showa Denko Recycler Specified business entities Manufacturing or selling companies Ｍｕｎｉｃｉｐａｐａｌｉｔｉｅｓ (pressing and stock) Ｓｅｌｅｃｔｉｖｅ ｄｉｓｃａｒｄ Selling container or packaging Payment of recycling fee Payment of fees for recycling Bidding 8%8%92%92% Payment for recycle fee Transport

16. Plastic containers

17. Pre-Treatment process

18. Ｗａｓｔｅ Ｐｌａｓｔｉｃ

19. Crasher

20. Extruder

21. RPF (Recycle Plastic Fuel for Gasification)

22. Gasification Plant

24. O 2 + Steam Metal Law-temperature gasifier (fluidized-bed type) High-temperature gasifier (swirling type) Slag Scrubber CO shift De-sulfur H 2 CO 2 RPF Caustic soda raw material Gasification plant outline Silo Perfect Chemical Recycling (zero-emission) From Pre-treatment plant O 2 + Steam Quench Sodium sulfite raw material

25. Thank You