Recent Development of Asahi Kasei Chemicals IM Technology to reduce Power consumptionFebruay 25, 2009

Asahi Kasei Chemicals Corporation

Contents1. About Asahi Kasei2. Recent Activities in the Chlor-Alkali Business 3. Features of the Existing Electrolyzer 4. The Next Generation Cell (NCZ2) 4. Latest membrane 5. Summary

1. Profile of Asahi Kasei Chemicals Corporation (AKC)1. Asahi means 2. Establishment of the company 3. Financial highlights (For the year ended March 31, 2008) Net sales Income before taxes Net income Total assets 4. Number of employees (as of March 31, 2006) Total of AKC and its subsidiaries 5. Business activities Chemicals Homes Pharma Fibers Electronics Materials & Devices Construction materials Services, Engineering and others Rising Sun 1931 16,968 1,056 699 14,254 Million of US $ Million of US $ Million of US $ Million of US $

23,854 Sales composition for the year ended March 31, 2008 52% 23% 6% 7% 7% 3% 2%

3

Profile of Asahi Kasei Chemicals Corporation (AKC)(Split up at April, 2005)

Asahi Kasei CorporationNet Sales 13,879 M$R&D

Asahi Kasei Chemicals

Net Sales 6,432 M$ Asahi Kasei HomesAsahi Kasei Pharma

Mizushima Works Kawasaki Works

Ion Exchange Membrane Div. Asahi Kasei Fibers

Energy Dev.

-----

Asahi Kasei EMDAsahi Kasei Construction Materials Asahi Kasei Life & Living

Total 18 Divisions

4

Business Configuration of Asahi Kasei ChemicalsBasic Chemicals Div.Energy Div. Inorganic Chemicals Div.Olefins, SM, others

Nylon & Urethane Intermediates Div.Performance Plastics Div. Plastic Compounds Div. Performance Coating Materials Div.

Adipic acid, cyclohexanol, others Nylon66, POM, mPPE, Purging compounds PP compound, engineering plastic compounds HDI, epoxy resin, others

Power supply Caustic Soda, Chlorine, ammonia, fertilizers, others AN, acetonitrile, others

Acrylonitrile Div. Polyethylene Div. ABS & SB Latex Div. Methacrylates Div. Synthetic Rubber Div. PC Div.

HDPE, LDPE, high performance PE ABS, AS, SBL

Functional Additives Div.

Additives for Pharmaceuticals & foods, industrial cleaning agentsIndustrial explosives, detonators, others Photosensitive resins, others

Explosives Div. Imaging Div. Industrial Membranes Div.

MMA monomer, PMMA, PMMA sheets Synthetic rubbers, thermoplastic elastomers, high styrene resins

Ultrafiltration & microfiltration membranes, fine porous membranes Ion-exchange membranes, electrolysis & electrodialysis systems Performance paper,5 PVDC coatings

Polycarbonate( Chimei-Asahi Corporation )

Ion Exchange Membranes Div.Others

PS Coordination Div.

PS ( PS Japan, SAL )

AKCC Users Plant Location (Total 105 )AKZO Nobel Chemicals B.V.,Delfzijl Merseburg & Stade

Rotterdam &

Dow Chemical , BASF,

Ludwigshafen

Load Alkali Hindustan Organic Chem DSC Shriram Gujarat Fluorochemicals Grashim Industires Chemplast Sanumar Durgapur Chemical Megmani Fine chem Universal

Russia Europe North America China

1 7 7 46

IndiaOceania Africa Japan Other Total

102 2 10 20 105

Total Capacity 17,778kT-NaOH/yr

as of Sep.2008)

6

Overview of Electrolyzer TypesForced Circulation Power Consumption

Natural Circulation NCS,H,Z,compatible)Finite gap Zero gap NCH 19972038 kwh at 4kA/m2

FC 19752066 kwh at 4kA/m2

NCS 19912066 kwh at 4kA/m2

NCZ 20031934 kwh at 4kA/m22070 kwh at 6kA/m2

2226 kwh at 6kA/m2

Low 4.5kA/m2

6kA/m2

7

Comparison of Cell Type (FC,NCS,NCH,NCZ)20034,257 kt/yr

1975FC10% 1,803 kt/yr

NCZ24%NCS17% 19978,742 kt/yr NCH49% 19912,979 kt/yr

Note: FC : Forced circulation type cell NCS: Natural circulation type cell (standard) NCH: Natural circulation type cell (high current density) NCZ:Natural circulation type cell(zero gap)

Total 15,878kt/yr as of Feb 2008

Features of Asahi Kasei Electrolyzers

1. Filter press design and rigid structure with metal header2. Quick, easy maintenance and membrane replacement 3. Brine acidification 4. Gas pressurization 5. Easy update modification of a cell (NCS&NCH NCZ cell)9

Features of Asahi Kasei Electrolyzers 1 Filter press design and rigid structure with metal header

10

Features of Asahi Kasei Electrolyzers 2 Quick, easy maintenance and membrane replacement

11

Features of Asahi Kasei Electrolyzers 3&4 Acidification and Gas Pressurization

12

Features of Asahi Kasei Electrolyzers 3&4 Acidification and Gas Pressurization4.0

3.5

3.0

O2/Cl2 %

2.5 No injection of HCl 2.0

1.5

1.0

0.5 Injection of HCl 0 88 90 92 94 96 98 100

Current Efficiency %

13

Features of Asahi Kasei Electrolyzers 5 Easy modification to zero-gap cellOverview

New Cathode Used Cathode (CurrentCell bottomcollector)

Anode

Mattress

Rib

Membrane14

Next Generation Cell

NCZMarket Entry Normal Operation Performance at 6kA/m2 2003 6kA/m2 2.99V 2070kwh

NCZ22010(Expected)

8kA/m2 2.90V 2004kwh

15

NCZ2 Concept Design Lower Cell Voltage & Reliability1) Mattress compression optimization 2) New catalyst and configuration of electrodes minimization of gas influence lower overvoltage and longer durability

Higher Current Density Operation1) More uniform concentration distribution with inner part design 2) Better separation of gas & liquid

16

Cell Voltage Components at 6kA/m2 ElectrolyzerDecomposition VoltageAnode Overvoltage Membrane Resistance + Donnan Potential

NCH

NCZ

NCZ2

2.21 0.070.51

0.06

Cell StructureCatholyte Loss Cathode OvervoltageOthers (Gas influence etc.)

0.23 0.14

0.02 0.02 0.09

Total (expected)

0.07 3.25V 2.99V

0.00 0.08 0.02 2.90V17

CV Improvement in AKC Technology(Cell, Electrode, Membrane)3.9 3.7 3.5 3.3 3.1 2.9 2.7 2.5 2.3 2.1 1.9 1.7 1.5

6kA/ 4kA/

Cell Voltage (V)

FC 1975-

NCS 1991-

NCH 1997-

NCZ 2003-

NCZ2 2010GDE

1975 1980 1985 1990 1995 2000 2005 2010 2015 2020

670.2*1.0V/0.97*18Mt/yr=1.1*1013wh/y=6,000kt-CO2/yr

18

Try New Aciplex F6801 Membrane

Save Power Costs Help the Environment Make More Profit19

Overview of Membrane typesNo Sacrificial threads channels Sacrificial threads channels Low Cell Voltage For high current density with low Cell Voltage

Power Consumption

Mechanical Strength

F4600 Series F4200 Series F4400 Series Low

Latest version Superior properties

F6800 Series

1) AciplexTM-F membranes has F2200 series for low concentration caustic (2024% NaOH) production. 2) AciplexTM-F membrane can be used for KOH production. Please consult with Asahi personnel. 20

Key Technology of New Aciplex F-6801

Low Power Consumption High Mechanical Strength High Durability against Impurities21

Point 1: Low Power ConsumptionItemsCell Voltage (V) Current Efficiency ( )Power Consumption (kWh/t-NaOH)

F6801 2.92

F4404 2.95

F4403D 2.95

97.52007

97.52027

97.02038

Conditions : CD=4kA/m2, Temp.=90, COH=32%, CCl=205g/l, 1.5mm gap, AK Lab

Low PC will contribute to save power costs.22

Why Dont You Try New Aciplex F-6801 ?

Fit to Any Technologies & Any Gaps (AKCC, UHDE, CEC, AGC etc.) Fit to Middle-High Current Density (4-8kA/m2 in Commercial Plant) Supplied more than 220,000m223

Summary1) AKCC has developed IM electrolysis technology for more than 34 years. 2) AKCC developed 4 types of electrolyzer. 3) AKCC will continue to improve Electrolysis Technology such as NCZ2 & GDE (Gas Diffusion Electrode) with lower power consumption and reliability.

4) AKCC will continue to improve IM membranes.24