Introduction to Tongsuh Tongsuh Petrochemical 2014.APR Asahi Kasei Group 4 Business Sectors 9 Core Operating Companies Chemicals & Fibers Electronics Asahi Kasei Chemicals Asahi Kasei Microdevices Asahi Kasei Fibers Asahi Kasei E-materials Asahi Kasei Corp. Holding company Homes & Construction Materials Health Care Asahi Kasei Pharma Asahi Kasei Homes Asahi Kasei Medical Asahi Kasei Construction Materials ZOLL Medical 1 NaCN & AN Capacity of Asahi Group Korea M.East Japan Thailand UNIT:KMT Sodium Cyanide Acrylonitrile 2012 2014 2017 2012 2014 2017 Korea 42 70 70 Korea 315 560 560 Japan 10 10 10 Japan 450 200 200 Thailand - - - Thailand 200 200 200 M.East - - (40) M.East - - (200) Total 52 80 120 Total 965 960 1160 2 2 Tongsuh`s Products Profile Acrylamide Propylene Acrylonitrile Ammonia Air By-product By-product Ammonium sulfate By-product Acetonitrile HCN Sodium cyanide NaOH Blow-down Product By-product Formalin Liquid NaCN EDA Formalin EDTA 3 Production method of NaCN By-Product On Purpose Type AN by product Light Oil and etc. Proportion 30% (Integrated 20%) 70% Cost Comparison Competitive Conventional Compared to on purpose, by-product is more competitive method to produce NaCN On purpose NaCN maker is under pressure in terms of cost. Tongsuh Petrochemical has special facility called “methanol injection” to compensate its output loss in case of AN operation cuts. 4 Tongsuh’s Sodium Cyanide - Shape - Size - Weight - Purity : Briquette : 32 X 30 X 12.5 mm : Approx. 13.3g/Briquette : 98% min. - Packing 50kg Steel Drum 1mt Wooden Box - Transportation by Container According to IMDG code Class 6.1 UN No. 1689 5 Sodium Cyanide Packing 6 Tongshu Location Seoul Head Office UlsanPlant Busan Port Seoul to Ulsan 300km Busan to Ulsan 50km Busan, South Korea's largest port city, retains its No. 5 spot in container handling capacity in the world. ( 17,040 thousand TEUs in 2012) 7 NaCN Trade to Americas (Unit : t/year) USA & CANADA Capacity 200,000 Demand 85,000 Balance surplus Short Balance In Americas TSPC&Asahi Mexico & SOUTH AMERICA Capacity 12,000 Demand 180,000 Balance deficit Estimated by TSPC 8