INVISTA in China

Report
INVISTA in China
March 2013
Confidential and Proprietary to INVISTA
INVISTA Overview
• One of the world’s largest integrated producers of
polymers and fibers, primarily for nylon, spandex, and
polyester applications
• Operate in more than 20 countries across North
America, South America, Europe, and the Asia-Pacific
region
• Approximately 12,000 employees world wide in
manufacturing facilities, administrative offices,
research laboratories and sales offices
• Wholly-owned subsidiary of Koch Industries, Inc.
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Koch Industries, Inc. – Size and Scale
• Fortune: 15th largest company in America
• Second largest privately owned business in North
America
• Uninterrupted 60+ year record of profitability
• Net debt free
• 60,000 employees in 60 countries
• $45 billion in acquisitions and capex since 2003
• 3,000x growth in book value since 1960, compared to
98x for S&P 500
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INVISTA Business Segments
Intermediates
 Nylon 6,6: Adipic acid, HMD, ADN,
polymer, engineering polymers
 Spandex intermediates: BDO, THF,
TERATHANE® PTMEG
 Specialty Materials: DBE® dibasic
esters, TERATE® polyols, DYTEK®
amines, C12 products
Apparel
 Spandex:
LYCRA® fiber, LYCRA HyFit™ fiber
 Nylon:
SUPPLEX® fabric, TACTEL® fiber
 Polyester:
COOLMAX® fabric
 Polyester: Polymer, PET Resin,
DMT
 IPT: Licensing and Technology
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PS&M
 Nylon 6,6 airbag fiber and
sewing threads
 Nylon 6,6 carpet fiber
(STAINMASTER® carpet,
ANTRON® carpet fiber)
 Nylon and polyester fibers for
outdoor, work wear, and
military products (CORDURA®
fabric)
INVISTA Presence in China
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Over 1,500 local employees
Total investment of > $1 billion announced/completed in China to date
Plus $ 1 billion projects not formally announced but under development
Another $5 billion currently under investment using INVISTA technology
(licensees)
Qingpu, Shanghai
Airbag fiber plant operational since
2008 is under expansion. Post
expansion capacity to double in
2013.
Qingpu, Shanghai
Textile Research Center
completed in July 2012
SCIP, Shanghai
HMD (Phase I) announced. Polymer (Phase II) & ADN
(Phase III) projects under development
Qingpu, Shanghai
Spandex plant
Foshan, Guangdong
Spandex plant, operational since 2006. Expansion
completed to double capacity to 24 ktpa.
Qingpu, Shanghai
Nylon 6 BCF plant acquired from
Honeywell in 2007 which
produces nylon 6 BCF for use in
carpets
Administrative and sales offices
Existing operations
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China GDP growth vs RoW
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How do we accomplish Growth in China?
• Developing and applying our capabilities in those
businesses where we can create the most value and
build and sustain a competitive advantage
• Building a culture based on a consistent framework of
shared values and expectations – our Market-Based
Management® Guiding Principles
• Producing products and services that make people’s
lives better; meeting the needs of the expanding
middle class
• Must be in harmony with China’s 5-year plans
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What challenges do we face in China?
• Intellectual Property Protection
• Ever-changing regulatory and environmental hurdles
• Foreign investment obstacles
• Talent
• Rising labor costs
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