Overviews of Bioplastics Marketand Bio-PTA Technology

Fanny Liao, Ph.D.Senior Vice President of

RD CenterFar Eastern New Century Corp.

10 Major Sectors, 9 Public Companies

ORIENTAL UNION

CHEMICAL CO .

U-MINGMARINE

FAR EASTERNDEPARTMENT

STORES

FAR EASTERNINT'L BANK

FAR EASTONE

FEG Revenues in 2013~ US$22.3 Bn

Profits ~US$2.2 Bn

�225 subsidiaries� 9 public listed companies

EVERESTTEXTILE

� > 50,000 employees� Total asset > US$ 69 Bn

FAR EASTERN TEXTILE

Far Eastern New Century (FENC)

ASIA CEMENT(Taiwan, HongKong)

Top 10 PET producers by nominal capacity (mMT)

Year The End of 2010 2015

Rank Company Capacity Company Capacity

1 Indorama 1,962 Indorama 3,320

2 M&G 1,720 M&G 2,820

3 DAK 1,530 DAK 1,960

4 Sang-Fang-Xiang 1,200 FENC 1,5505 FENC 1,150 China Resources 1,300

6 Invista 850 Sang-Fang-Xiang 1,200

7 Nan Ya 800 Nan Ya 940

8 KP 594 Reliance 850

9 La Seda 550 Octal Holding 827

10 SK 540 ASPET 770

Top 10 Total 10,848 Top 10 Total 14,607

World Total 19,217 World Total 27,348

Top 10 (%) 56% Top 10(%) 53%

Top 10 PET Makers in the World @KMT

Polyester & Petrochemical Business

PTA

MEG*

Cotton Yarn

Knitted Fabrics

Industrial Fabrics

Garments

PET Resin & Film

Polyester Filament

Polyester Staple

Polyester Polymer

900 thousand tons

250 thousand tons

494 thousand tons

900 thousand tons

110 thousand tons

270 thousand tons

250 thousand spindles

540 thousand dozens

8 thousand tons

51 thousand tons

Taiwan

600 thousand tons

Under construction

568 thousand tons

700 thousand tons

44 thousand tons

120 thousand tons

120 thousand spindles

5,520 thousand dozens

13 thousand tons

49 thousand tons

China

Up-Stream

Middle-

Stream

Down-Stream

Fully Vertical Integration

* Not including the off-take capacity 90,000 T/y in Canadian joint venture with MEGlobal

2,400 thousand tons 1,600 thousand tons

Capacity in 2015

900 thousand tons

1,450 thousand tons

400 thousand tons

Outlines

-- Bioplastics?

Biodegradable vs. Bio-based

-- Bioplastics Market Overview

-- PET and bio-PET Market Overview

-- bio-PTA Technology Overview

Bioplastics impact little on the agriculture lands

Bioplastics rely on less than 0.01% of the global agricultural area of 5B ha.Bioplastics is nowhere near being in competition to Food and Feed.

Global Bioplastics Demand

9

Global Bioplastics Production and Projection --2012 data

Biopolymers production capacity -- 2017

Outlines

-- Bioplastics?

Biodegradable vs. Bio-based

-- Bioplastics Market Overview

-- PET and bio-PET Market Overview

-- bio-PTA Technology Overview

Global Bio-MEG demand estimate (mMT) 2007-2017E

30% vs. 100% Bio-PET Drivers

Pepsi:March 16th,2011“Pepsi will do a pilot run of the plant-based bottles in 2012 ”

PepsiCo said the bottle is 100 percent recyclable and has a molecular structure identical to petroleum-based PET. In addition, the soft drinks maker claims the bottle is identical to PET drinks containers in terms of look, feel and product protection.

PlantBottle ™

Coke & Heinz:

Outlines

-- Bioplastics?

Biodegradable vs. Bio-based

-- Bioplastics Market Overview

-- PET and bio-PET Market Overview

-- bio-PTA Technology Overview

Bio-PTA Processes

2. C4 +C4 route for PX:

(C4) (C8)(PX) (PTA)

(C4)

(C6)

Cyclization

1. Pyrolysis or catalytic route to make BTX(C6, C7 & C8):

Biomass/lignin/sugars → Aromatics → BTX → PX → PTA

Such as Such as Such as Such as Virent’sVirent’sVirent’sVirent’s BioFormingBioFormingBioFormingBioForming®®®®

3. C4 + C2 + C2 route for PX:4. 3*C2 + C2 route for PX:

(PTA)

(C6)

(C2)

(C8)

(C6)

6. C6 + C2 route for PTA:

5 . C6 + C2 route for PX:7. HMF(C6) + C2 route to make PTA:

(C6) (C2)

(C6) (PTA)

8. C5 + C3 route for PTA:

(C5) (C3) (C8)

PTA

-- With better O2 and CO2 gas barriers

-- miscible with PET recycle stream?

9. HMF to DMF or FDCA(C6) route as a substitute of PTA:

(C6) (C6)

+ MEG

PEFPEFPEFPEF

DMF(DMF(DMF(DMF(C6C6C6C6))))PXPXPXPX

Which is the road to 100% Bio-PET?

10. C10-C2 route:

or

limonene(C10)

(C10) (C8)

Syngas

29

Steady Progress Towards 100% Renewable PET100% renewable bottles successfully made using:

BioFormPX™

PET Resin

Acknowledgements

Colleagues in Far Eastern Groupwww.feg.com.tw1. FENC: Far Eastern New Century www.fenc.com2. FEIS : Far Eastern Industrial (Shanghai) www.feis.com.cn3. FEIZ: Far Eastern Industrial( SuZhou)4. OPTC: Oriental Petrochemical (Taiwan) Corp.5. OPSC: Oriental Petrochemical (Shanghai) Corp.

www.opsc.com.cn6. OUCC: Oriental Union Chemical Corp. www.oucc.com.tw7. OPYZ: Oriental Petrochemical (YangZhou) Corp.8. ORD: Oriental Resources Development Ltd.

www.ord.feg.com.tw

Fanny Liao, Ph.D.Director of Biofuels and Renewable Materials

Far Eastern New Century Corp. fannyliao@feg.com.tw

Thanks for your attention!