1. Polyolefinic Materials for Steel Pipe Coating SystemPipe Coating Solution+ 3-Layer Anti-corrosion Pipe Coating SystemEver since SK had started development of polyolefinic adhesive and top-coat resins for 3-layer anti-corrosion pipe coatings in 1989, we brought the first products into the market under the name ofPOLYGLUE (adhesive) and its already well published name of YUCLAIR in 1993.Together with FBE coating and 2-layer polyethylene coating system, 3-layer coating practice hasnow become industry standard in the most demanding on- and off-shore pipeline projects. Incontrast to the single layer fusion bonded epoxy powder coating system, each component layers of3-layer coating system devote to multi-lateral protection of the pipe, i.e., epoxy layer adheres tosteel pipe surface acting as the main anti-corrosion countermeasures, and then tie layer firmlyattach outer polyethylene top-coat to the inner epoxy layer. Top-coat endows remaining mechanicaland functional protection to the whole system.The key factors to the reliable serviceability of the 3-layer coating system are the strong bonding ofadhesive layer to both epoxy and top-coat layers over the full service temperature range (up to 80 )and the ability of top-coat material to withstand various environmental stresses during the life of thecoated pipe, i.e. storage, transportation and installation not to mention, its operation stage.SKs POLYGLUEand YUCLAIR for pipe coating application have proved themselves to beeffective solution during the last decade for many international applicators and/or projectors asshown by our experience in this field. Requirements of Each Component Materials for 3-layer Anti-corrosion Pipe CoatingSystemEpoxy primer layer should,- form a continuous film of strong bonding to the steel surface by interacting with its oxides- provide reaction sites to the adhesive layer for chemical bondage.- endow high chemical resistance and resistance to cathodic disbond flexibility allowing cold bending under the field conditionAdhesive tie layer should provide powerful bond between inner epoxy primer layer and outer PEtop-coat layer by its anhydride functional group grafted onto its polyethylene back boneTop coat layer should,- provide high mechanical, chemical resistance and anti-corrosive properties- allow long term UV stability and thermal stability

2. Requirements of steel pipe coatings system under DIN30670 standardDIN30670DIN30670 SK system Physical properties UnitNormal classN Special classS Yuclair ET509BContinuity (dielectric) kV >25 >25 >25Bond strength20 5 N/cm>35 >35 >150 50 5N/cm>15 >25 >50 Impact strength at 25 / No electric breakthroughJ/mm >5>5 >10Indentation hardness23 2 mm < 0.2- < 0.1 50 2mm < 0.3- < 0.1 70 2mm -< 0.3 < 0.2 Percentage elongation at failure % >200 >200>400Coating resistivity m2 >108>108>1010Heat aging100days/100 (MFR) % change < 35- < 35200days/100 (MFR) % change-< 35< 35 Light aging, 7GJ/m 2 (MFR) % change < 35< 35< 35Anti-corrosion 3-layer coating processPhysical Properties of POLYGLUEPhysical propertiesUnit Test MethodLE149VLE200T LE100AMelt Flow Rate at 190 /2.16kgdg/minASTM D12381.6 4.0 4.9Densityg/cm3ASTM D792 0.921 0.9270.916 Tensile Strength at Break kg/cm2 ASTM D638200 180180Ultimate Elongation % ASTM D638850 800820 Hardness Shore DASTM D2240484747 Vicat Softening Point ASTM D1525102 102 86 Brittleness TemperatureASTM D746 < -70 < -70 < -70 Melting point ASTM D3418121 121120 Water Absorption ASTM D570 < 0.01 < 0.01< 0.01 3. Physical Properties of Top-coat Polyethylene Physical propertiesUnit Test Method SK ET509B (typical) Melt Flow Rate at 190 /2.16kg dg/min ASTM D12380.30 Density g/cm3 ASTM D7920.949 Tensile Strength at yield kg/cm2ASTM D638180Tensile Strength at Breakkg/cm2ASTM D638300 Ultimate Elongation % ASTM D638800HardnessShore D ASTM D2240 60Vicat Softening Point ASTM D1525120 Brittleness Temperature ASTM D746< -70Melting point ASTM D3418128ESCR (F50 , 10% Surfactant)Hr ASTM D1693>1,000Water Absorptionwt % ASTM D570< 0.01Carbon Black Contentwt %ASTM D1603 2.0 Oxygen Induction time at 220 min ASTM D3896 15Volume resistivitymASTM D257>10 16 Dielectric withstandkV/mm ASTM D149 38Compatibility Data of SKs Adhesive and PE Top-coat Materials with Other ProductsEpoxy PrimerAdhesive co-polymer Adhesive co-polymer(Manufacture) (Manufacture)(Manufacture)BASFOX PE-50-1081 YUCLAIR ET509B LE149V(BASF) (SK Corp.) EP-971197 / EP-F-2001HE3450, ME6060(Jotun) (Borealis) LE200T Scotchkote 228Sclair 35BP, 35BPM (3M)(Nova)Karumel EX 4413 Lacqtene 2006 PBK 35 LE100A(KCC) (Elf-Atochem) Eurokote 71441Lupolen 3653 DSW(Elf-Atochem)(Basell)Quality Control System for POLYGLUE and PE To p - c o a tTo maintain uniform quality level, we are conducting regular product bactch-wise test over the belowproperties in plant and R&D Center. The standard of control system is as following.In-house POLYGLUE quality control regulationTest Item Test MethodInspection Cycle Melt Flow Rate ASTM D1238Per 30 min Density ASTM D792 Per Lot. ASTM D792Per Lot. Tensile Strength at BreakASTM D638Per Lot.Elongation at Break ASTM D638Per Lot. 4. Hardness ASTM D2240Per Lot.Vicat Softening Point ASTM D1525Per Lot.E.S.C.R ASTM D1693 Annually Water Absorption ASTM D570AnnuallyBrittleness Temperature ASTM D746AnnuallyOxygen Induction Time ASTM D3896 QuarterlyMelting Point ASTM D3418 Quarterly Peel StrengthSK Method Per 1 HourIn-house PE top-coat quality control regulation Test ItemTest Method Inspection CycleMelt Flow Rate* ASTM D1238Per 30 minDensity ASTM D792 Per Lot.ASTM D792 Per Lot. Tensile Strength at BreakASTM D638 Per Lot.Elongation at Break ASTM D638 Per Lot. Hardness ASTM D2240Per Lot.Vicat Softening Point ASTM D1525Per Lot.E.S.C.R ASTM D1693 Annually Water Absorption ASTM D570AnnuallyBrittleness Temperature ASTM D746AnnuallyOxygen Induction Time ASTM D3896 QuarterlyMelting Point ASTM D3418 Quarterly- Attachment 1. A Marketing History- Attachment 2. Reference 5. 99,Seorin-Dong Jongro-Gu, Seoul ,KoreaTEL:82-2-2121-6487, FAX:82-2-2121-69371/1 PAGE Past Reference of SalesNo.Applicator ProductsProject Name UserYear1 Hyundai Metal Indonesia- Polyethylene ET509B: 3,500MTDomestic Pipeline coating Project PGN Indonesia 1997 - Co-Polymer Adhesive LE149V: 330MT2 PSL Holdings Ltd.- Polyethylene ET509B: 900MTJamnagar-Loni LNG Pipelines Gas Authority of India1999 - Co-Polymer Adhesive LE149V: 90MTcoating Project3 Petrojet - Co-Polymer Adhesive LE100A: 407MT Domestic Pipeline coating project Egyptian Government 19994 PPSC Malaysia- Co-Polymer Adhesive LE149V: 160MT Loop II Project PETRONAS19995 Crescent Steel - Polyethylene ET509B: 229MTDomestic Oil Pipeline coating Project Pakistan Government 1999-20006 Yadong Anti-Corrosion- Co-Polymer Adhesive LE200T: 287MT Domestic Gas Transportation CNPC2000-2001Hualong Petroleum Anti-Corrosion Pipeline Project7 SAW Pipes Ltd. - Polyethylene ET509B: 160MTBaruni-Patna Pipeline Project Indian Oil Company Ltd. 2000 - Co-Polymer Adhesive LE149V: 160MT8 Al-Qahtani Pipe Coating Terminal - Polyethylene ET509B: 40MT Domestic Oil Pipeline coating Project ARAMCO2000 - Co-Polymer Adhesive LE200T: 4MT9 PPSC Malaysia- Co-Polymer Adhesive LE149V: 30MTLoop III ProjectPETRONAS2000 10 PPSC Malaysia- Co-Polymer Adhesive LE149V: 120MT Fahud Sohar Gas Pipeline ProjectOman Government 2001 11 PSL Holdings Ltd.- Polyethylene ET509B: 480MTPara-deep Pipeline ProjectIndian Oil Company Ltd. 2001 - Co-Polymer Adhesive LE149V: 48MT 12 Yadong Anti-Corrosion- Co-Polymer Adhesive LE200T: 336MT West-East Pipeline ProjectCNPC2001-2002Hualong Petroleum Anti-Corrosion 13 Dongsung C-Tech- Co-Polymer Adhesive LE149V: 120MT Aleppo-Palmyra Gas Pipeline Project Syrian Petroleum Co.2001 6. 99,Seorin-Dong Jongro-Gu, Seoul ,KoreaTEL:82-2-2121-6487, FAX:82-2-2121-6937 2/2 PAGENo.Applicator Products Project NameUser Year 14 Petrojet - Co-Polymer Adhesive LE100A: 15MTOffshore Gas Pipeline Project EGPC 2001 15 PPSC Malaysia- Co-Polymer Adhesive LE149V: 465MT In Salah Gas Development ProjectBP & Sonatrach 2002 16 Ahwaz Pipe Mills - Polyethylene ET509B: 880MTDomestic Oil Pipeline coating Project NIOC 2002 - Co-Polymer Adhesive LE149V: 120MT 17 PSL Holdings Ltd.- Polyethylene ET509B: 748MTVizag-Secondrabad Pipeline ProjectEIL2002 - Co-Polymer Adhesive LE149V: 80MT 18 Yadong Anti-Corrosion- Polyethylene ET509B: 690MTOnshore Pipeline ProjectCNOOC2002 19 Petrojet - Co-Polymer Adhesive LE200T: 225MT Egyptian Gas Transmission Network EGPC 2002 20 WISTCO - Polyethylene ET509B: 56MT West Semo PMIndonesian Government/ 2002 - Co-Polymer Adhesive LE149V: 5MT (Oil Station Construction)Unocal 21 DATA Steel - Polyethylene ET509B: 65MT SSGC Gas Pipeline Project SSGC 2002 - Co-Polymer Adhesive LE149V: 28MT 22 Crescent Steel - Polyethylene ET509B: 75MT SSGC Gas Pipeline Project SSGC 2002 23 Socotherm Australia- Co-Polymer Adhesive LE149V: 48MTSea Gas Pipeline Project: Southeast Australia2002 673Km, 18 (Port Campbell To Pelican Point) Gas Pty 24 PPSC Malaysia- Co-Polymer Adhesive LE149V: 445MT BTC Pipeline projectBP Consortium2002-2003 25 C.P.E.C.C. - Polyethylene ET509B: 4,180MTWhite Oil Pipelines Project in Pakistan PARCO, SHELL, PSO, 2003 - Co-Polymer Adhesive LE149V: 720MT CALTEX 26 C.P.T.D.C. - Polyethylene ET509B: 3,124MTSudan Fula Oil Shipping Pipeline Project: SUDAN Government 2003 - Co-Polymer Adhesive LE200T: 282MT 600Km, 24(Fula oil field----Khartoum) 27 C.P.T.D.C. - Polypropylene PT900W: 770MT Sudan Fula Oil Shipping Pipeline Project: SUDAN Government 2003 - Co-Polymer Adhesive RE340B: 62MT110Km, 24(Fula oil field----Khartoum) 7. 99,Seorin-Dong Jongro-Gu, Seoul ,KoreaTEL:82-2-2121-6487, FAX:82-2-2121-6937 3/3 PAGENo. ApplicatorProducts Project NameUser Year 28 PPSC Malaysia- Co-Polymer Adhesive LE149V: 92MTSakhalin II Project S.E.I.C. 2003-? 29 Shinho Korindo - Co-Polymer Adhesive LE149V: 15MTIndonesia Domestic Project 2003 30 SAW PIPES LTD. - Co-Polymer Adhsive LE149V: 40MT Mora Sajod Gas Pipeline Project IOCL 2003 31 Bredero Shaw Australia PTY - Co-Polymer Adhesive LE851P: 100.2MT Enertrade Project Enertrade2003-2004 32 PPSC Malaysia- Co-Polymer Adhesive LE149V: 400MT SCP(South Caucasus Pipeline) Pipeline BP Consortium2004-? project 33 PPSC Malaysia- Co-Polymer Adhesive LE149V: 138MT Trans Thai Malaysia Project T.T.M. Limited 2004-? 34 PSL Limited- Polyethylene ET509B: 600MTNalka-Bogra Gas Transmission Pipeline Gas Transmission 2004 - Co-Polymer Adhesive LE149V: 64MTCompany Ltd. (GTCL) 35 Petrojet - Polypropylene PT900W: 250MT Burullus Gas Simian Sienna/Sierra KHALDA Petroleum 2004 - Co-Polymer Adhesive RE340B: 20MT& Sapphire ProjectCompany - - - - - - - - - - - 8. References 9. References | Socotherm Italy Adhesion Strength Test result at Socotherm Italy. SKs adhesives (LE100A/LE149V) were tested with combinations of other Epoxies and PE Top Coat material for its Adhesion Strength at various temperature (through item 4 to 9) | PPSC in Malaysia | PPSC in Malaysia Adhesion Strength Test resultAdhesion Strength Test result From PPSC in Malaysia on June 99. From PPSC in Malaysia on June 99. Epoxy: EP1197,JotunEpoxy: L-300, KCC Adhesive: LE149V, SK Adhesive: LE149V, SK18 10. References| PT Perusahaan GasNegaraPT Perusahaan Gas Negara hasapproved to use SKs AdhesiveLE149V and PE Top Coat materialET509B for its gas transmission anddistribution pipeline project (1999)| PetronasPetronas has approved SKsLE149V to be used in conjunctionwith Karumel (Epoxy, KCC) and PETop Coat of Etilinas.19 11. References | PSL in India Complete 3-layer system adopting Karumel L-301 of KCC/LE149V of SK/ET509B of SK was line tested by PSLs coating plant20 12. References| PT Hyundae MetalMaterial Certification from PTHyundae Metal was issued afterthey finished pipeline project oftotal length 550Km in Indonesiausing LE149V and ET509B.| Indian Oil Company Ltd.IOCL has put the name of SK into itsVendor List (LE149V and ET509B)21 13. References Qualty Control> Certification ISO 9001 (1994), ISO14001 (1996), KOLAS (1999): Korea Laboratory Accreditation Scheme> Quality Control System By the standard of ISO 9001, SK Corporation has quality control system. All the physical properties of POLYGLUEare estimated by Quality Control System and issued in the form of analysis test report at every batch.> Evaluation of Physical Properties ASTM (American Standard Test Method) is the evaluation standard of quality control and technical service. And we do estimate all the characteristics of materials according to this standard. SK R&D center is a officially authorized institute by KOLAS (Korea Laboratory Accreditation Scheme). | ISO 9001 (1994)22 14. References | ISO 14001 (1996) | KOLAS (1999) 15. www.skchem.com> Advanced Polymer Business TeamTel : 82-2-2121-6487, 6771, 6891Fax : 82-2-2121-6937> Advanced Polymer Technology GroupTel : 82-42-866-7663, 7844Fax : 82-42-866-7402