We benefit from a number of competitive strengths, including the following:
Leading Positions
We believe that we are a leading global integrated producer of acetyl, acetate and vinyl emulsion products. Advanced Engineered Materials and our strategic affiliates, Polyplastics Co., Ltd. (“Polyplastics”) and Korea Engineering Plastics Co., Ltd. (“KEPCO”), are leading producers and suppliers of engineered polymers in North America, Europe and the Asia-Pacific region. Our leadership positions are based on our large share of global production capacity, operating efficiencies, proprietary production technology and competitive cost structures in our major product lines.
Proprietary Production Technology and Operating Expertise
Our production of acetyl products employs industry-leading proprietary and licensed technologies, including our proprietary AOPlus ® 2 and AOPlus TM technologies for the production of acetic acid and VAntage TM and VAntage Plus TM vinyl acetate monomer technology. AOPlus ® 2 builds on the industry benchmark with the ability to increase acetic acid production from our current capacity of 1.2 million tons per reactor per year to approximately 1.5 million tons per reactor per year at a fraction of the cost of a new facility. This technology is applicable to existing and new greenfield units. AOPlus TM enables increased raw material efficiencies, lower operating costs and the ability to expand plant capacity with minimal investment. VAntage TM and VAntage Plus TM enable significant increases in production efficiencies, lower operating costs and increases in capacity at ten to fifteen percent of the cost of building a new plant.
Low Cost Producer
Our competitive cost structures are based on production and purchasing economies of scale, vertical integration, technical expertise and the use of advanced technologies.
Global Reach
We own or lease thirty-two production facilities throughout the world, of which five sites are no longer operating as of December 31, 2009. We participate in strategic ventures which operate thirteen additional facilities. Our infrastructure of manufacturing plants, terminals, warehouses and sales offices provides us with a competitive advantage in anticipating and meeting the needs of our global and local customers in well-established and growing markets, while our geographic diversity reduces the potential impact of volatility in any individual country or region. We have a strong, growing presence in Asia, particularly in China, and we have a defined strategy to continue this growth.
