Sources: CMAI, and analysis PETCO. PVC per c pit

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The Latin American PVC market
First Brazilian PVC Congress
Sao Paulo, June 7, 2005
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• Outlook focused on
• The Andean Countries
• Mexico, Chile
• Central America and
• The Caribbean

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What we will see

• Regional economic data
• Outlook on PVC markets
• Challenges, opportunities

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• Regional economic data

Latin American Economies by size US Billions
Source International Monetary Fund's World
Economic Outlook
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• Regional economic data

GDP per capita, 2004
USD
Source International Monetary Fund's World
Economic Outlook
6

• Regional economic data

GDP per cápita in Central America 2004
Source International Monetary Fund's World
Economic Outlook
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• Regional economic data

Per capita GDP in the Caribbean 2003 (US )
US
Source International Monetary Fund's World
Economic Outlook
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• Regional economic data

Colombia
Real GDP US Bs 95.2
GDP Growth ()
Population 45 millions
Per capita GDP US 2.099
Source International Monetary Fund's World
Economic Outlook
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• Regional economic data

Mexico
GDP Growth ()
Real GDP US Bs 676,5
Population 105 millions
Per capita GDP US 6502
Source International Monetary Fund's World
Economic Outlook
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• Regional economic data

Venezuela
GDP Growth ()
Real GDP US Bs 107,5
Population 24 millions
Per capita GDP US 4148
Source International Monetary Fund's World
Economic Outlook
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• Regional economic data

GDP Growth ()
Source International Monetary Fund's World
Economic Outlook
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Contents

• Regional economic trends
• Outlook on PVC market
• Challenges, opportunities

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268
Policyd
Production Capacitieskt / year
752
356
470
Pemex
Primex-Mexichem
280
150
600
185
Pequiven
442
Petco
479
360
BRAZIL
Braskem
140
PVC
Carbocloro
MVC
231
140
Solvay Indupa
EDC
128
355
210
240
Source CMAI
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Total PVC production capacities ( 1.169 k t /
year)

• Mexico 53
• Colombia 30

Source CMAI,
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Colombias Additional Emulsion PVC
Total Capacity, Jan 2006 60.000 tons per year
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PVC Internal Demand (kt / year)

• Venezuelas production and consumption was
  dramatically impacted in 2003

Sources CMAI, and analysis by PETCO
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PVC Demand Andean Countries and Chile(Tons per
year)
Sources CMAI and analysis by PETCO
18
PVC Demand Central America and the Caribbean
Sources CMAI, and analysis PETCO
19

Plastics Consumption PVC VS Others (Colombia,
000 metric tons per year)

Source Acoplasticos
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PVC per cápita consumption, 2004
Kg./Person
Sources CMAI, and analysis PETCO
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• PVC per cápita consumption / each US1,000 of GDP
• 2003

Sources CMAI, and analysis PETCO
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PVC applications market share, 2003
Millions TM 30 5.5
6.2 1.5 0.13
0.33
Sources CMAI, World Bank and analysis by PETCO
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PVC applications market share, 2003
Sources CMAI, World Bank and analysis by PETCO
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Why the growing in Other Aplications has been
limited?

• Little advantage of the existing opportunities
• to export manufactured vinyl products
• Little exploration of the potential domestic
  markets
• for PVC products which have a long and
  succesful
• record in developed countries.

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Challenges , opportunities

• Free trade agreements lays the way towards a
• market with great demand of manufactured
• products
• Latin American PVC products can accede
• competitively to that market

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Commercial opportunities
Medical devices

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Commercial opportunities
Synthetic leathers

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Commercial opportunities

• Non slip rug pads
• Multipurpose liners
• Place mats

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Commercial opportunities
Traffic Cones

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Commercial opportunities
Furniture
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Commercial opportunities
Roofing titles
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Commercial opportunities
Roofing membranes
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Commercial opportunities
Flooring
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Profiles for windows and building systems
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• Our challenges
• To promote the regional internal markets
  development
• To emulate the Chinese industry in its huge
  exports of PVC final products
• To impulse innovation and design of new vinyl
  products
• To reach a better understanding of vinyl
  applications and benefits

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• The Colombian Award for
• PVC Innovations