One Pack Systems (OPS)

One Pack Systems (OPS)

2 songnox OPS

SONGWON The global partner of choice for polymer additives Songwon Industrial Co., Ltd. has grown to become the second largest polymer stabilizer supplier in the world. Founded in December 1965, Songwon comprises 17 companies including 2 joint ventures and 1 representative office, located in 9 different countries and 3 continents. Songwon is headquartered in, and operates 6 manufacturing facilities of which 3 are located in Korea, 1 in Germany, 1 in USA, 1 in China and in addition a manufacturing JV plant in China. Songwon s commitment is to deliver better quality, better service and better value in chemical additives, anticipating the needs and desires of its customers in the polymer industry. Songwon manufactures an unequaled portfolio of antioxidants and UV stabilizers in a full range of physical forms; it is fully backward integrated in alkyl phenols and further integrated into isobutylene using proprietary technology to deliver the highest levels of quality and consistency backed by security of supply. 0 5 1965 1975 from a vision of success to a major regional polymer additives supplier 15 1980 30 1985 60 1990 90 1995 200 2000 250 2005 to a key global specialty chemicals player 540 400 2008 480 2010 2011 680 2012 Million US$ 2011 1076 plant Maeam Expansion of TPU production Acquisition Additive Technologies Greiz Thioester AO's 2006-2010 Maeam plant Isobutylene back integration Isobutylene expansion Specialty AO's UV Stabilizers 1965-2005 Alkyl Phenol and Alkyl Cresol back integration Phenolic, Phosphite & Specialty AO's Metal soaps Liquid Phosphites Bi-Functional Monomers Plasticizers and SAP PVC Stabilizers and Tin Intermediates songnox OPS 3

Songwon Global Technical Service OPS Center of Excellence in Greiz, Germany Songnox OPS: World Class Technology to design a family of value added stabilizer packages In December 2011 Songwon acquired Additive Technologies Greiz (ATG), one of Europe s largest manufacturers of One Pack Systems (OPS) products for the polymer industry. The manufacturing plant is located in Greiz (Germany) and has produced dust free polymer additive packages since 2006. Following the acquisition of ATG and its successful integration in Songwon s processes, a capacity expansion in Greiz was implemented which came on stream in July 2012, making this facility one of the biggest plants for OPS in the world. In addition Songwon established Songwon Additive Technologies AG. The partnership is the vehicle for the global OPS expansion activities and is the parent of ATG. The first plant in the United States (Houston) came on stream in May 2013 and will be followed by a production facility in the Middle East scheduled for 2014. Songnox OPS is the unique fusion of world class antioxidants and UV stabilizers from Songwon with state of the art OPS technology stemming from ATG. This unique combination offers unlimited flexibility and versatility to provide tailor made blend compositions. OPS products combine several additives into an integrated dust free, pellet form. Songwon s OPS products are readily available under the Songnox OPS brand; they are custom formulated and offer a number of key advantages such as uniformity and certified composition. The market for OPS has been enjoying consistent growth as compounders and polymer producers continuously search for added value and more efficient production technology. Demand for Songnox OPS has increased in applications which require highly dispersed additives that result in improved product performance. 4 songnox OPS

One Pack Systems: A variety of innovative and tailor-made additive combinations, backed by security of supply OPS products combine several additives into an integrated dust free and robust pellet form reducing the handling of multiple materials to one single flow path. OPS compositions can be tailored to meet customers needs from a wide range of additive products. The pellets are homogeneous and highly accurate in their composition, allowing easy processing into a polymer matrix. Due to their pre-dispersed consistency OPS brings greater assurance to the compounding process reducing quality control, eliminating overdosing and underdosing as well as enabling a cleaner and healthier working environment. OPS, due to their consistent accuracy, can be of particular value to a wide range of industries where end-use specifications are critical, removing the risk of human error during processing. They also benefit from the elimination of additional carrier materials often needed in production processes where separate powder additives are combined. Songnox OPS Product Range High melter blends Processing at lower temperature and reduced sheer stress Low melter blends Tailored processing solutions Nucleator & clarifier blends Improved re-dispersion Highly loaded UV blends Robust processing of oligomeric HALS Blends including liquid components Combining powders and liquids into one durable pellet New developments Low dust powders and tablets OPS compositions are tailor-made to meet customers needs from a wide range of additive products. songnox OPS 5

Performance Songnox OPS: A high quality, robust, reliable product for trouble free processing OPS offer a unique combination of product and processing property enhancements. In a production process they deliver the highest quality levels at reduced cost. Formulations are extremely accurate and consistent over the total process. Contamination risks are severely reduced, as is the unknown element of human error. Quality control procedures can be reduced which in turn lower the need for manpower resources. Improved quality reduces waste and downtime while simplified processing adds to potential cost savings. Less equipment, less floor space, less energy, less maintenance and less manpower are coupled with reduced capital investment and overhead costs. OPS pellets are largely dust free, thereby contributing to improved plant hygiene, reduced employee exposure and reduced risk of explosion for a healthier and safer work environment. Dosing Accuracy of Powder Blends versus OPS blends Powder blends OPS blends * Excluding Off Spec due to outside effects (e.g. polymer quality ) Less overdosing optimizes performance and reduces costs Under-dosing causes Off Spec and enormous costs No Off Spec by OPS* OPS offers: One simple flow path; handling is reduced to a minimum; multiple materials are combined into one single safe and easy to use product form. High abrasion resistance; robust pellets improve feeding and therefore flow properties, contributing to a more stable process. Improved flow properties; resulting in better feeding and conveying; sticking or clumping, often seen when multiple separate additive products are added, is reduced. Higher melting rate; easing the incorporation into polymers and improving dispersion as well as reducing the amount of additive used to reach the desired performance level. Consistent composition; eliminating underdosing which leads to off-spec products and over-dosing which increases cost. Extended performance; liquid additives can be incorporated into the OPS pellets; Songwon proprietary OPS blends can contribute, for example, to reduced VOC emissions which can improve issues of odor and fogging during service life. 6 songnox OPS

Manufacturing: A clean and simple tailored product for maximum performance and minimum cost OPS are the end result of combining multiple additive chemicals into one single form. The additives are tailored to provide enhancement to a specific polymer in order to deliver specific performance results. The chemicals are weighed accurately in large volumes from silos and are fed into a fully automated mixing system. The resultant pellets are then packaged in a clean and dust free environment, ready for shipping. At the customer, the OPS pellets are fed into the final extrusion process where they are easily dispersed with bulk polymer products, eliminating multiple powder material flows and the associated increased risk of mistakes and additional costs. OPS Manufacturing Technology Raw material storage Weighing Customer benefits of OPS the OPS pellets are certified as to their composition for a robust and trouble free process with minimal quality control required. the pellets are dust free for a clean and healthy working environment. logistics, handling and packaging are reduced to a minimum creating less waste and using less space. the pellets are not susceptible to moisture absorption and do not compact or cake during storage. less capital equipment is required, using less energy, reducing manpower and maintenance. higher levels of performance and significant cost savings can be achieved. Mixing Granulating Filling songnox OPS 7

Regulatory and REACH: Songwon, a leader in regulatory compliance Songwon has committed significant resources to ensure that its products are 100% compliant with all known regional and country specific regulations. The European Union introduced REACH (Regulation, Evaluation and Authorization of Chemicals) in 2007, and REACH preregistration was achieved in 2008 for all Songwon s products imported directly or indirectly into Europe. December 2010 was a critical deadline for REACH product registration and Songwon has ensured that all the contributing elements, such as CLP (Classification, Labeling and Packaging of substances and mixtures) have been put in place. This regulation aligns previous EU legislation on classification, labeling and packaging of chemicals to the GHS (Globally Harmonized System of Classification and Labeling of Chemicals). The GHS is a United Nations system to identify hazardous chemicals and to inform users about these hazards through standard symbols and phrases on packaging labels and through Safety Data Sheets (SDS). Songwon provides extensive information to its customers through a quarterly newsletter about the REACH process, requirements, deadlines and developments. Regular updates are given on the product registration process and customers can proceed with their business, safe in the knowledge that Songwon s products will be 100% compliant on or before the given deadlines. 8 songnox OPS

Technical Service Centers of Excellence Songwon s qualified Technical Service teams interface with customers and provide the first line of support. Songnox OPS products will be served from the Songwon OPS Center of Excellence located in Greiz (Germany), forming part of the global network of technical centers within Songwon. Our central lab in Korea supports customers and regional technical service facilities with analytical and application expertise. Songwon s New Product Commercialization group has a proud record of successful new product delivery and is the interface between Songwon s development activities and its customers. All of these functions are supported by the Songwon R&D Center in Korea combined with a global network of R&D capabilities focusing on product and process development. songnox OPS 9

Customer Service and Logistics Global presence Regional execution Songwon serves the major polymer producers and compounders from regional headquarters in Ulsan (Korea), Frauenfeld (Switzerland), Houston (USA), Shanghai (China), Tokyo (Japan), Mumbai (India) and Manama (Kingdom of Bahrain). Our Supply Chain Model is designed to meet regional requirements and deliver excellent customer service through strategic regional distribution with Songwon support in downstream markets: Asia: Songwon stocking locations in Korea, Japan and China, with stocking distributors in all major Asian countries. EMEA: Songwon stocking locations in Belgium, India and Kingdom of Bahrain with stocking distributors in all major European countries, Russia, Turkey and South Africa. Americas: Songwon stocking locations in USA, Canada and Brazil with stocking distributors in North, Central and South America. Headquarters/Affiliates Manufacturing Applications Technical service R&D Sales / Distribution Frauenfeld, Switzerland Sales / Distribution Seoul / Busan, Korea Frauenfeld, Switzerland Akron, USA Bangkok, Thailand Barcelona, Spain Bogor, Indonesia Bogotá, Colombia Brussels, Belgium Bucharest, Romania Budapest, Hungary Buenos Aires, Argentina Cairo, Egypt Caracas, Venezuela Cheshire, United Kingdom Dubai, UAE Hamburg, Germany Helsingborg, Sweden Ho Chi Min City, Vietnam Istanbul, Turkey Maeam, Korea Suwon, Korea Greiz, Germany Tangshan, China Jakarta, Indonesia Johannesburg, South Africa Kuala Lumpur, Malaysia Lima, Peru Melbourne, Australia Mexico City, Mexico Milano, Italy Moscow, Russia Norwalk, USA Paris, France Prague, Czech Republic Quito, Ecuador Rotterdam, Netherlands Santiago, Chile Sao Paulo, Brazil Santo Domingo, Dominican Republic Singapore, Republic of Singapore Sofia, Bulgaria Teheran, Iran Tel Aviv, Israel Toronto, Canada Warsaw, Poland Vienna, Austria Zagreb, Croatia Brussels, Belgium Logistic Hubs Abu Dhabi, UAE Antwerp, Belgium Akron, USA Columbus, USA Newark, USA Edmonton, Canada Mississauga, Canada Sao Paulo, Brazil Bangkok, Thailand Barcelona, Spain Bogor, Indonesia Bogotá, Colombia Bucharest, Romania Frauenfeld, Switzerland Buenos Aires, Argentina Caracas, Venezuela Cheshire, United Kingdom Hamburg, Germany Helsingborg, Sweden Ho Chi Min City, Vietnam Istanbul, Turkey Johannesburg, South Africa Kuala Lumpur, Malaysia Lima, Peru Melbourne, Australia Mexico City, Mexico Milano, Headquarters/Affiliates Italy Moscow, Russia Prague, Czech Republic Quito, Ecuador Santiago, Frauenfeld, Chile Switzerland Santo Domingo, Mumbai, Dominican India Republic Singapore, Republic of Singapore Seoul / Busan, Korea Frauenfeld, Switzerland Akron, USA Bangkok, Thailand Barcelona, Spain Bogor, Indonesia Bogotá, Colombia Brussels, Belgium Bucharest, Romania Budapest, Hungary Buenos Aires, Argentina Cairo, Egypt Caracas, Venezuela Cheshire, United Kingdom Dubai, UAE Hamburg, Germany Helsingborg, Sweden Ho Chi Min City, Vietnam Manufacturing Istanbul, Turkey Maeam, Korea Suwon, Korea Greiz, Germany Tangshan, China Jakarta, Indonesia Johannesburg, South Africa Kuala Lumpur, Malaysia Lima, Peru Melbourne, Australia Mexico City, Mexico Milano, Italy Moscow, Russia Norwalk, USA Paris, France Prague, Czech Republic Quito, Ecuador Rotterdam, Netherlands Santiago, Chile Sao Paulo, Brazil Santo Domingo, Dominican Republic Singapore, Republic of Singapore Sofia, Bulgaria Teheran, Iran Tel Aviv, Israel Toronto, Canada Warsaw, Poland Vienna, Austria Zagreb, Croatia Applications Brussels, Belgium 10 songnox OPS

Technical service R&D Sales / Distribution Logistic Hubs Frauenfeld, Switzerland Seoul / Busan, Korea Frauenfeld, Switzerland Akron, USA Bangkok, Thailand Barcelona, Spain Bogor, Indonesia Bogotá, Colombia Brussels, Belgium Jakarta, Indonesia Johannesburg, South Africa Kuala Lumpur, Malaysia Lima, Peru Melbourne, Australia Mexico City, Mexico Milano, Italy Moscow, Russia Norwalk, USA Paris, France Prague, Czech Republic Quito, Ecuador Rotterdam, Netherlands Santiago, Chile Abu Dhabi, UAE Antwerp, Belgium Akron, USA Columbus, USA Newark, USA Edmonton, Canada Mississauga, Canada Sao Paulo, Brazil Buenos Aires, Argent Caracas, Venezuela Cheshire, United King Hamburg, Germany Helsingborg, Sweden Ho Chi Min City, Vietn Istanbul, Turkey Johannesburg, South Kuala Lumpur, Malay Lima, Peru Melbourne, Australia Mexico City, Mexico Milano, Italy songnox Moscow, OPS Russia 11

for more information, please contact: Songwon International AG Phone: +41 52 635 00 00 Fax: +41 52 635 00 01 E-mail: doris.peters@songwon.com Songwon Industrial Co., Ltd. 737-2, Yochon-Dong Nam-Gu 680-090 Songwon Holdings AG Walzmühlestrasse 48 CH-8500 Frauenfeld Switzerland Songwon International AG Walzmühlestrasse 48 CH-8500 Frauenfeld Switzerland Songwon International-Americas, Inc. 1311 W Parkwood Ave Friendswood, TX 77546 USA Songwon International - India Pvt. Ltd. 701 - Purva Plaza Shimpoli Road Borivali (West) Mumbai 400092 India Songwon International - Japan K.K. Nishi-Shinbashi 1chome Kawate building 8F, room 801 Nishi-Shinbashi 1-5-8, Minato-ku, 105-0003 Tokyo Japan Songwon China Ltd. Rooms 2202-03, 22/F, Wing On House 71 Des Voeux Road, Central Hong Kong, China Songwon Trading Co. Ltd. 3rd Floor, Unit 2, 159 Tianzhou Road Shanghai 200233 China Songwon Chemicals Co. Ltd. No. 680 Shenfu Road, Jiuting, Songjiang District Shanghai 201615 China Songwon Baifu Chemicals (Tangshan) Co. Ltd. Tangshan Nanpu Development Zone South to Ronghua Road Tangshan, China Chemservice Asia Co. Ltd. Songwon Building, 59-4, Banpo 4-Dong Seocho-gu 137-044 Seoul, Korea Songwon Additive Technologies AG Walzmühlestrasse 48 CH-8500 Frauenfeld Switzerland Songwon-ATG GmbH Heinrich-Hertz-Strasse 10 DE-50170 Kerpen Germany Songwon Additive Technologies - Americas Inc. 1311 W Parkwood Ave Friendswood, TX 77546 USA www.songwon.com Salient From the Latin Verb salire to leap or leaping. As an adjective, meaning the most noticeable, prominent or important. Salient Songwon, leaping ahead in the world of polymers; A prominent global supplier of chemical additives. It is exclusively in individual written agreements that we provide our customers with warrants and representations as to the chemical or technical specifications, compositions and/or the fitness for any particular purpose. The facts and figures contained herein are carefully compiled to the best of our knowledge but they are essentially for informational purposes only. We will not accept any liability whatsoever based on any information, reference or advice given in this or any similar publication of Songwon. Songnox is a registered trademark of Songwon Industrial Co., Ltd. Songwon OPS BRO V2-10-2013