Sven Luytens, Mehmet Ipekci, March 5th 2013

1. Koruma Tedbirleri Genel Gorüsmesi:Terephthalic Acid (PTA)Public hearing: Safeguard investigation Terephthalic Acid (PTA) Sven Luytens, Mehmet Ipekci, March 5th 2013

2. PTA Arz / Talep Türkiye PTA • Rakamlarbagimsizüçüncüsahisverikaynaklarindanalinmistir: PCI Xylenes and Polyesters Ltd. • Türkiye net olarak PTA ithalatçisivebunadayali alt ürünlerihracatçisidir. • Mevcutyillik PTA talebiyaklasik 250 bin ton ,PTA üretimkapasitesi 70 bin tondur. • 2012 den 2015 e kadarekonomikbüyümeveistihdamyaratacakyeniprojelervediger ham maddelerinplastifiyansanayindeoldugugibizorunluikamesiile PTA tüketimi 300 bin den 550 bin tonaçikacaktir. • 2015 yili sonrasi icin yeni ek kapasite yatirimlati açiklanmistir. Yerli PTA bazli sanayinin devamini gelismesini ve büyümeye devam etmesini saglayacak rakip PTA ithalatı Veri Kaynagi: PCI

3. PTA Supply / Demand Turkish PTA • Numbers based on independant third party data source: PCI Xylenes and Polyesters Ltd • Turkey is a net importer of PTA and a net exporter of downstream products. • Current PTA demand ~250kt/yr, PTA capacity 70kt. • Increased PTA consumption >300k tonnes (to 550kt) from 2012 to 2015 through new build projects (creating economic growth and employment) and substitution of other raw materials (driven by legal requirements, eg. Plasticizer industry). • Additional new capacity investments are announced post 2015. Competitive PTA imports needed to sustain, develop and continue to grow the local PTA based industry. Data Source: PCI

4. Koruma : Genel Görüsler • BP prensipolarakasagidakikonularidesteklemektedir: • Normal piyasadinamiklerinedayali, “adil“ ticaret: Bu durum sanayide hem üretici hem de tüketiciiçin en iyisonuçlarisaglar. • Ancakbelirliüreticilertarafindan damping veyadesteklemeuygulamalarigibiadilolmayanislemleryapildigininispatlandigitakdirde, belirlitedbirleralinmasi. • BP genelkorumatedbirlerinin; • Mahalli PTA üretiminikoruyabilecegine. • Türk PTA tüketicilerininkendipazarlarindaveihracatpazarlarindadevamliligini,büyümeleriniverakabetedebilirlikleriniazaltarakciddiorandazararverebilecegineinanmaktadir. • Avrupavedünyadayenivedünyaçapndakapasiteliüretimlerinindevreyegirmesininsonuçlari: • Türkiyedeki PTA fiyatlari normal ve rekabetçi dinamiklerden etkilenmistir. • Diger pazarlarda da oldugu gibi Türk piyasasinda görülen yeni PTA saticilari ortaya çikmis ancak ortalama ithalat miktarlari artmamistir. Örnegin,Türk Ithalat Iststistiklerine göre 2012 ithalati 2006 veya 2007 yillari düzeyindedir.

5. Safeguard general comments • BP as a principle supports: • “fair” trade flows based on normal market dynamics as this will result in the best outcome for both producers and consumers in an industry. • specific measures where unfair competitive behaviour such as dumping or subsidy practices by specific producers can be demonstrated. • BP believes a general safeguard measure may: • safeguard local PTA production. • harm the Turkish PTA consumers, reducing their ability to compete in their home market and export markets critical to their sustainability and continued growth. • The start-up of new world scale production capacity in Europe and globally has resulted in: • Turkish PTA prices being influenced by normal competive dynamics. • new PTA exporters emerging on the Turkish market (as elsewhere), however the aggregate level of imports did not matelially increase (eg Turkish import statistics show 2012 imports at similar levels to 2006 or 2007).

6. PTA Teknoloji Evrimi • Dünyadayeni PTA teknolojisindekievrim (dahabüyükboyutluvedahaverimliüretimler) vekapasiteartimlarieskinesilfabrikalarinisletmeleriniekonomikolmaktançikarmistir. • Örnekolarak, BP’ninBelçikaGeel’deki en eskiünitesiileAlmanya’dakibirüretimininkapatilmasigösterilebilir. Bunlarin her ikisi de Türkye’dekimahalliprosesiileayninesilteknolojivelisanstipinesahipti. YineAsyasanayiindeeskinesilfabrikalarindünyaçapindayeniünitelerlerekabetimkaninikaybetmelerinedeniilekapatildiginadairraporlaralinmaktadir. • Su andaki piyasa fiyatlarina göre teknoloji yaklasik olarak USD 100/ ton maliyet farki yaratmaktadir. • Paraksilenhammaddesi PTA maliyetininçogunumeydanagetirmektedir. Bu halihazirdadünyaçapındabirfabrikadamaliyein % 80 iniolusturmaktadir. BP’ nintahminlerinegöreeskinesilbirfabrikada (yaklasik 200 bin ton kapasiteyekadar) burakamdahayüksekdegiskenvesabitbirimmasraflarnedeniile % 70 dir. • Digerdegiskenvesabitmasraflardünyaçapindafabrikalarda % 20 iken BP tahminlerinegöreeskinesilfabrikalarda % 30 kadaryüksekolabilmektedir.

7. PTA technology evolution • The evolution in new PTA technology (larger in scale and more efficient) and capacity additions throughout the world has resulted in old generation plants becoming uneconomic to run. • Examples are the announced closures of the oldest unit at BP Geel in Belgium and a PTA production unit in Germany, both of the same generation technology and licence type as the local process in Turkey included in the case application form. Also in the Asian industry there are reports that old generation plants are being stopped as they can no longer compete with the new world scale units. • Based on current market pricing, technology results in a cost difference of ~100$/mt. • The raw material Paraxylene accounts for the majority of the costs of PTA. In a current world scale plant this accounts for ~80% of the cost. BP estimates this can be as low as 70% for older generation plants (up to 200kmt capacity) given the higher other variable costs and fixed costs on per unit base. • Other Variable and fixed costs account for ~20% for a world scale plant, BP estimates this can be as high as 30% for older generation plants.