Compelling Factsabout PlasticsJan-Erik Johansson30th September,2009

0

50

100

150

200

250

300

1950 1960 1970 1980 1990 2000

Mio t

1950: 1.5

Europe (WE + CE)

1976: 50

1989: 100

2002: 200

2006: 245

Includes Thermoplastics, Polyurethanes, Thermosets, Elastomers, Adhesives, Coatings and Sealants and PP-Fibers. Not included PET-, PA- and Polyacryl-Fibers

World

Plastics production fell for first time in 34 years due to the financial crisis

2008: 245

2008: 60

Source: PlasticsEurope Market Research Group (PEMRG)

Production fell back from 260 to 245 million tonnes per year

Plastics production

ramped up from 1.5 Mio t in 1950to 245 Mio t in 2008

Average Annual Growth Rate (CAGR) has been about 9,0%

245 Mio t

Europe (WE + CE)

25.0% 60 Mio t

Source: PlasticsEurope Market Research Group (PEMRG)

.....but Europe continue to be a major production base for Plastics

Demand by converters in EU27+NO/CH fell 7.5% to 48.5 million tonnes in 2008

Break-down per country

and by plastic type

Recovery reached 51% in 2008…and is increasing

Import

Export

Recovery 12.8 Mt

Consumer demand

PCWaste 24.9 Mt

51.3%

Disposal 12.1 Mt48.7%

Import

Export

40% short service life and 60% long

Converter demand ofEU27+N/CH

48.5 Mt

Packaging 38%

Construction 28%

Automotive 7%

E/E 6%Others 21.0 %

Recycling

5.3Mt21.3%

7.5Mt30.0%

Energyrecovery

EU27+NO/CH 2008

Continued decoupling of generation of plastics waste and disposal on landfill

- - - Change from EU15+2 to EU27+2 in 2005

0

5,000

10,000

15,000

20,000

25,000

30,000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

x 1.

000

tons

Total post-userplastic wasteDisposal

Slowing growth of recycling and energy recovery

- - - Change from EU15+2 to EU27+2 in 2005

01,0002,0003,0004,0005,0006,0007,0008,000

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

x 1.

000

tons

Energy recovery

Mechanical recycling

Feedstock recycling

Growth rate 1996-2008: ~9,9%/year

~9,6%/year

~11,0%/year

- 5,6%/year

Despite the progress - the same 9 countries remain at the top and the same 18 below 40%

Recycling

Energy recovery

Plastics have a positive net trade and a positive trend

Billion €

Plastics lost 26% in production volume during 1H 2009 and converted products 18%

Index (2005 = 100, Trend cycle)

50

60

70

80

90

100

110

120

130

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Plastics in Primary Forms Manufacture of Plastics Products

Summary Global plastics production decreased 2008 for the first time in 34 years

(260 to 245 million tonnes) and demand for plastics by converters in Europe fell back 7.5% to 48.5 million tonnes The economic crisis has hit the plastics industry severely with production drop around 20% from Jan to June 2009 and more than 30% from autumn 2008

Recovery increased 1% point to 51.3% continuing the decoupling ofgrowth in used plastics from disposal at landfill

- recycling increase fell back to 4.3%- energy recovery increased 3.6%

7 Member States, Norway and Switzerland recovered more than 80% of their plastics through an integrated strategy using best option for each stream

Plastics industry contributed 13 billion € in net export surplus to EU27