South America Opportunities on Risks

Latin AmericaA great region in the western

side, total demand of plastic and Polymer was consumed 25% ofglobal demand approximated

amount 60 Trillion USD. While the demand of plastic have beenintegrated to the agriculturalbusiness and food business.

While the biggest player for mining still be Chile and Brazil have

integrate the system to be the biggest consumer for agricultural

for energy supply.

Journal from Latin today Feb 10, 2011

Peru GDP VS trade Balance Peru GDP VS trade Balance

2009 passed crisis with plus sign

2010 trade balance

Economic Geography in PeruEconomic Geography in Peru

Peru in the World- Leading silver producer. - Second largest copper producer.- Leading exporter of asparagus, organic coffee.- Leading producer of fishmeal and fish oil.- US$ 4,500 per capita income in 2009.- Leading producer of gold, zinc, tin and lead.- Third largest country in South America.- Second largest natural forest area.- Only sustainable natural gas source on the South America Pacific coast.

Peru greater amount of agriculture in Peru greater amount of agriculture in LATAM as same as the growth of imported LATAM as same as the growth of imported growth of import plastic resin for growth of import plastic resin for agricultural filmagricultural film

Export Agricultural product from LATAM 2006 - 2010

0

2

4

6

8

10

12

14

16

18

20

2006 2007 2008 2009 2010

D

C

B

A

Amount of importing polymer in Peru from 2006 - 2010

MUS

Import agricultural from USA to Import agricultural from USA to PeruPeru

Peru #2 Cupper producer in the Peru #2 Cupper producer in the worldworld

2009 Growth of Mining production in Chile2009 Growth of Mining production in Chile

KG - 2009

Distribuidor

Pipes

Film

Inyección/Soplado

Soplado

Inyección

Otros

Tuberia Riego

Planchas

Segmentation for Application

Chile HDPE to pipe Demand in 2009Thailand paid 6% import duty while Korea 0 duty

26%

21%

20%

13%

3%4%

4% 3% 2% 4%

Korea USA Sweden Brazil Singapore

S. Arabia Thailand Germany Argentina Others

Total HDPE Consumption

2008 50,000 MT

2009 45,000 MT

2010 ~ 48,000 MT

Colombia and Peru Total demand supply for Pipe 4118 MT and 9210 MT in 2009 respectively 33%

29%

23%

13% 1%1%0%

 USA  Belgium  Korea  BRASIL  Germany  Spain

Colombia Total HDPE Consumption

2008 5,300 MT

2009 4,100 MT

2010 ~ 5,120 MT

29%

7%

31%

13%

13%3% 4% 0%

USA  Belgium  Korea China

 BRASIL  Germany  Spain

Peru Total HDPE Consumption

2008 7,300 MT

2009 9,210 MT

2010 ~ 11,210 MT

Segmentation for Application

Chile LLDPE to Rotomolding Demand in 2009Korea free tax while Thailand 6% expected 2010 will reach t0 2100 MT

KG - 2009

Distribuidor

Film

Geomembrana

Otros

Riego

Masterbatch

Inyección

Rotomoldeo

Cables

Total demand supply for Roto Molding 2009 ColombiaWas 4500 MT while expected 7,600 MT for 2010

CustomerCustomer   MEXICOMEXICO   USAUSA  Saudi Saudi ArabiaArabia

  CANADCANADAA

  AustrAustriaia Total Total

TotalTotal3.786.123.786.12

00 453.067453.067188.00188.00

00 25.72025.7202.202.20

00

4.454.455.105.10

77

1470

1353

1067

565

RotpPlast

AJ Over

Colombit

Rototec

Supply ability from Mexico and USA

Import duty is our opportunities or riskCompare with Asia’s cargo we have the less competitiveness in CHILE

DutyDuty

raterate

ORIGINSORIGINS

USAUSA EUROPEEUROPE KOREAKOREA CHINACHINA TAIWANTAIWAN ARGENTINAARGENTINA BRAZILBRAZIL THAILANDTHAILAND

CHILECHILE 00 00 00 00 66 00 00 66

PeruPeru 00 00 00 00 00 00 00 00

BRAZILBRAZIL 1414 1414 1414 1414 1414 00 00 1414

ARGENTINAARGENTINA 1414 1414 1414 1414 1414 00 00 1414

COLOMBIACOLOMBIA 5.55.5 5.55.5 5.55.5 5.55.5 5.55.5 2.52.5 2.52.5 5.55.5

BOLIVIABOLIVIA 1010 1010 1010 1010 1010 00 00 1010

Chile import quantity (MT) of HDPE 2009

1. Opportunities loss 120 KT2. Need the FTA to support toExpand market base in Chile.