SK Chemicals 2013 1

- PPS JV company of SK Chemicals and Teijin

Introduction of

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SK Chemicals TEIJIN

66% 34%

Strong Heritage & Sponsorship

PPS JV Company

SK Chemicals and Teijin Chemicals, to Launch Joint Venture, INITZ for Super Engineering Polymer Business - SK Chemicals Co., Ltd., is to set up joint venture with Teijin Chemicals Ltd.,

claiming 66% of the equity. - The joint venture partnership is expected to generate synergy over development,

production and marketing, targeting 20% of the global market share. The leading chemical companies of Korea and Japan have decided to pursue joint venture partnership for developing, producing and marketing a super-engineering plastic. SK Chemicals, Korea’s leading chemical producer, announced that it launched a joint venture with Teijin Chemicals Limited of Japan for polyphenylene sulfide (PPS) business at 1st.Sep. 2013. The announcement revealed that SK Chemicals will share 66% of the equity of the new joint venture to be established. Teijin Chemicals will have 34% shares of the joint venture’s equity.

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The Company - INITZ

“Initium” - Beginning, or Start (in Latin) + “Zenith” - The highest point (in Latin) : Commitment to take a leap forward to become the world’s top company in PPS by introducing innovative, brand-new technology.

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Summary of INITZ [1/2]

Basic Information 1

PPS Marketing

SK + Teijin1)

Production

Maintenances

Grade R&D

Applications

M P R

CEO : HK Kim

1) Dispatching MP from Teijin : 1 Director (BOD ) : Marketing co-leader / 1~2 marketer

Organization 3

Name : INITZ ( ) )

Establishment : August 30th, 2013 (Date of Anniversary : September 1st)

Company Share 2

Shareholders : SK 66% : Teijin 34% (BOD SK 3 : Teijin 2)

Total Investment : 250 Mil. USD (≒ 270 Bil. KRW)

< Company structure >

Beginning : 31 employees (Production : 18)

At 2015 year : 122 employees (Production : 66)

F&A, HR, Admin.

Procurement

S

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Introduction of ECOTRAN

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JVC Launching with Teijin on Sep.2013

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Technical Support

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Compound grade product line up

1040G 1040S 5060G 2000T 2130T 2150T

PPS/GF40GF40 High

StrengthGF/MF65

Elastomer

unfilledPPS E-GF30 PPS E-GF50

Specific gravity g/cm3 1.66 1.66 1.98 1.30 1.50 1.70

Water absorption % 0.02 0.02 0.02 0.03 0.02 0.02

Mold shrinkage MD/TD - 0.3/0.5 0.3/0.5 0.2/0.6 1.2 / 1.5 0.2 / 1.3 0.2 / 1.2

Tensile strength ISO 527 MPa 180 195 130 65 145 145

Tensile elongation at break ISO 527 % 1.7 2.0 1.2 10.1 2.5 1.5

Flexural strength ISO 178 Mpa 265 285 220 100 200 210

Flexural modulus ISO 178 Mpa 13,400 13,800 18,500 2,900 9,000 15,000

Charpy impact str. (notched / un-notch) ISO 179 KJ/m2 9 / 35 10 / 40 6 / 20 8 / 50 12 / 45 7 / 35

HDT (3.2T, @1.82 Mpa) 'C 265 265 265 90 255 260

Co-eff. Of thermal expansion

-50℃~50℃ MD/TDASTM E 831 m/m'C

2.1 X 10-5 /

4.1 X 10-5

1.8 x 10-5 /

4.2 x 10-5

1.9 x 10-5 /

2.9 x 10-5

6.3 x 10-5 /

6.4 x 10-5

2.5 x 10-5 /

6.0 x 10-5

2.5 x 10-5 /

4.1 x 10-5

Co-eff. Of thermal expansion

100℃~200℃ MD/TDASTM E 831 m/m'C

2.0 X 10-5 /

9.1 X 10-5

1.7 x 10-5 /

10.1 x 10-5

2.0 x 10-5 /

6.7 x 10-5

12.3 x 10-5 /

14.1 x 10-5

3.1 x 10-5 /

9.7 x 10-5

5.5 x 10-5 /

9.6 x 10-5

Melting temperature ISO 11357 'C 280 280 280 280 280 280

UL flammability, T=0.4mm UL 94 - V-0 - V-0V-2

(@1.5mm)

V-1

(@1.5mm)

V-0

(@1.5mm)

Dielectric strength, T=1mm/1.6mm ASTM D149 Kv/mm 28 / 22 28 / 22 25 / 20 25 / 20 25 / 20 25 / 20

Dielectric constant (1MHz) ASTM D150 - 3.8 3.8 4.8 3.5 4.8 4.8

Dissipation factor (1MHz) ASTM D150 - 0.0016 0.0016 0.0016 0.0020 0.0050 0.0050

Comparative tracking index (CTI) IEC 60112 Volt 150 150 225 125 150 175

Arc resistance ASTM D495 sec. 125 125 180 70 120 120

Volume resistibility ASTM D257 Ohm.cm 1016 1016 1016 1016 1016 1016

1) Elastomer motified grade data are measured on experimental samples that was produced on a small R&D machine (not commercial machine).

Thermal

Electrical

General Grades Elastomer motified Grades 1)

Grade

Method UnitType

Physical

Mechanical

V-0 V-0 V-0