1. CHLOR-ALKALI INDUSTRY OVERVIEW
Roger Shamel, President
Consulting Resources
Corporation
Lexington, Massachusetts

2. TOPIC OUTLINE BACKGROUND INDUSTRY OVERVIEW MERCURY-RELATED ISSUES
SUMMARY AND CONCLUSIONS
QUESTIONS

3. CONSULTING RESOURCES CORPORATION
CHEMICAL MANAGEMENT CONSULTING FIRM
FOCUSED ON BUSINESS RESEARCH AND ANALYSIS
SPECIAL EMPHASIS ON CHLOR-ALKALIS
FOUNDED IN 1981 BY ADL ALUMNI
EMPHASIS ON QUALITY SERVICE
SOURCE: CONSULTING RESOURCES CORPORATION

4. CHLOR-ALKALI INTERRELATIONSHIPS
SOURCE: CONSULTING RESOURCES CORPORATION

5. CHLOR-ALKALI BUSINESS ACTIVITY CYCLES
NOW
GDP
CHLORINE
RELATIVE BUSINESS ACTIVITY LEVEL
CAUSTIC SODA
SODA ASH
TIME
CHLOR-ALKALI BUSINESS ACTIVITY CYCLES
SOURCE: CONSULTING RESOURCES CORPORATION

6. U. S. CHLOR-ALKALI PLANT LOCATIONSM M M M M M M M M M M
CHLORINE/CAUSTIC
(“M” = some mercury capacity)
SODA ASH
U. S. CHLOR-ALKALI PLANT LOCATIONS
SOURCE: CONSULTING RESOURCES CORPORATION

7. U.S. CHLORINE PRODUCTION: 1980 - 2005 (MILLIONS OF TONS)14 10 6 2
U.S. CHLORINE PRODUCTION: (MILLIONS OF TONS)
SOURCE: THE CHLORINE INSTITUTE AND CONSULTING RESOURCES CORPORATION

8. GLOBAL CHLORINE DEMAND BY END USE: 2002 TOTAL DEMAND = 45 MM TONS
SOURCE: CONSULTING RESOURCES CORPORATION

10. GLOBAL CHLORINE DEMAND BY REGION: 2002 TOTAL DEMAND = 45 MM TONS
JAPAN 9%
SOURCE: CONSULTING RESOURCES CORPORATION

11. GLOBAL CAUSTIC SODA DEMAND BY END USE: 2002 TOTAL DEMAND = 48 MM TONS
ORGANICS
28%
INOR-
GANICS
17%
SOURCE: CONSULTING RESOURCES CORPORATION

12. KEY ISSUES IMPACTING CHLOR-ALKALIS
SHIFTING TECHNOLOGY
TIGHTENING REGULATION
MATURE, CYCLIC GROWTH
SOURCE: CONSULTING RESOURCES CORPORATION

13. KEY FACTORS INFLUENCING CHLOR-ALKALI PLANTS
THE ECONOMY
PLANT ECONOMICS
REGULATIONS
TECHNOLOGY
SHUTDOWN COSTS
KEY FACTORS INFLUENCING CHLOR-ALKALI PLANTS
SOURCE: CONSULTING RESOURCES CORPORATION

14. SOME MERCURY CELL PLANT FACTS
MERCURY FORMS AN AMALGAM WITH SODIUM
THE AMALGAM YIELDS MERCURY AND CAUSTIC
THUS, MERCURY (Hg) IS NOT CONSUMED
11 U.S. Hg PLANTS (27%) = 14% OF CAPACITY
U.S. ABOUT 4% OF GLOBAL Hg CELLS
SOURCE: CONSULTING RESOURCES CORPORATION

15. SOME MERCURY CELL PLANT ISSUES
MERCURY CELL TECHNOLOGY IS MATURE
MUCH STRICTER REGS, CONTROLS THAN BEFORE
FUTURE GROWTH LARGELY MEMBRANE CELL
MERCURY EXIT BARRIERS ARE HIGH
MERCURY’S FUTURE HARD TO PREDICT
SOURCE: CONSULTING RESOURCES CORPORATION

16. SUMMARY AND CONCLUSIONS
A CRITICAL AND COMPLICATED BUSINESS
MERCURY PLAYS AN IMPORTANT ROLE
BUT INDUSTRY GROWTH IS IN MEMBRANES
HANDLING EXISTING MERCURY IS COMPLEX
OPEN DIALOG IS VITAL
SOURCE: CONSULTING RESOURCES CORPORATION