Presentation on theme: "INVISTA in China March 2013 Confidential and Proprietary to INVISTA."— Presentation transcript:
1 INVISTA in ChinaMarch 2013Confidential and Proprietary to INVISTA
2 INVISTA OverviewOne of the world’s largest integrated producers of polymers and fibers, primarily for nylon, spandex, and polyester applicationsOperate in more than 20 countries across North America, South America, Europe, and the Asia-Pacific regionApproximately 12,000 employees world wide in manufacturing facilities, administrative offices, research laboratories and sales officesWholly-owned subsidiary of Koch Industries, Inc.
3 Koch Industries, Inc. – Size and Scale Fortune: 15th largest company in AmericaSecond largest privately owned business in North AmericaUninterrupted 60+ year record of profitabilityNet debt free60,000 employees in 60 countries$45 billion in acquisitions and capex since 20033,000x growth in book value since 1960, compared to 98x for S&P 500
4 INVISTA Business Segments IntermediatesApparelPS&MNylon 6,6: Adipic acid, HMD, ADN, polymer, engineering polymersSpandex intermediates: BDO, THF, TERATHANE® PTMEGSpecialty Materials: DBE® dibasic esters, TERATE® polyols, DYTEK® amines, C12 productsPolyester: Polymer, PET Resin, DMTIPT: Licensing and TechnologySpandex: LYCRA® fiber, LYCRA HyFit™ fiberNylon: SUPPLEX® fabric, TACTEL® fiberPolyester: COOLMAX® fabricNylon 6,6 airbag fiber and sewing threadsNylon 6,6 carpet fiber (STAINMASTER® carpet, ANTRON® carpet fiber)Nylon and polyester fibers for outdoor, work wear, and military products (CORDURA® fabric)44
5 INVISTA Presence in China Over 1,500 local employeesTotal investment of > $1 billion announced/completed in China to datePlus $ 1 billion projects not formally announced but under developmentAnother $5 billion currently under investment using INVISTA technology (licensees)Qingpu, ShanghaiAirbag fiber plant operational since 2008 is under expansion. Post expansion capacity to double in 2013.SCIP, ShanghaiHMD (Phase I) announced. Polymer (Phase II) & ADN (Phase III) projects under developmentQingpu, ShanghaiTextile Research Center completed in July 2012Foshan, GuangdongSpandex plant, operational since Expansion completed to double capacity to 24 ktpa.Qingpu, ShanghaiSpandex plantQingpu, ShanghaiNylon 6 BCF plant acquired from Honeywell in 2007 which produces nylon 6 BCF for use in carpetsAdministrative and sales officesExisting operations
7 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 advantageBuilding a culture based on a consistent framework of shared values and expectations – our Market-Based Management® Guiding PrinciplesProducing products and services that make people’s lives better; meeting the needs of the expanding middle classMust be in harmony with China’s 5-year plans
8 What challenges do we face in China? Intellectual Property ProtectionEver-changing regulatory and environmental hurdlesForeign investment obstaclesTalentRising labor costs