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The Latin American PVC market
First Brazilian PVC Congress
Sao Paulo, June 7, 2005
Outlook focused on

The Andean Countries

Mexico, Chile

Central America and

The Caribbean
What we will see:

Regional economic data

Outlook on PVC markets

Challenges, opportunities
Regional economic data
Latin American Economies by size
US$ Billions
Mexico
Brazil
Argentina
Venezuela
Colombia
Chile
Peru
Ecuador
Guatemala
Dom Republic
Costa Rica
El Salvador
0
200
Source: International Monetary Fund's World Economic Outlook
400
600
800
Regional economic data
GDP per capita, 2004
6506
5856
Mexico
Chile
Panama
Costa Rica
Venezuela
Argentina
Uruguay
Brasil
Peru
El Salvador
Dom. Republic
Ecuador
Colombia
Guatemala
4524
4361
4148
3912
3543
3417
2349
2335
2190
2145
2099
1953
0
Source: International Monetary Fund's World Economic Outlook
2000
USD$
4000
6000
8000
Regional economic data
GDP per cápita in Central America
2004
5000
4500
4000
3500
3000
2500
2000
1500
1000
500
0
Nicaragua
Honduras
Guatemala
EL Salvador
Costa Rica
Panama
2003
Source: International Monetary Fund's World Economic Outlook
Regional economic data
Per capita GDP in the Caribbean
2003
US$
(US $)
18000
16000
14000
12000
10000
8000
6000
4000
2000
0
Puerto Rico
R.Dominicana
Trinidad
Jamaica
Guyana
Haiti
2003
Source: International Monetary Fund's World Economic Outlook
Regional economic data
Colombia
Real GDP
US$ Bs 95.2
Population:
45 millions
Per capita GDP
US$ 2.099
Source: International Monetary Fund's World Economic Outlook
GDP Growth (%)
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
Regional economic data
Venezuela
Real GDP
US$ Bs 107,5
Population:
24 millions
Per capita GDP
US$ 4148
Source: International Monetary Fund's World Economic Outlook
GDP Growth (%)
Regional economic data
GDP Growth (%)
20
15
10
Colombia
Venezuela
5
Mexico
Perú
Chile
0
2003
2004
2005
-5
-10
Source: International Monetary Fund's World Economic Outlook
2006
Latin
America
Contents

Regional economic trends

Outlook on PVC market

Challenges, opportunities
268
752
Policyd
Production Capacities
356
470
kt / year
Pemex
Petco
PrimexMexichem
Pequiven
280
185
150
600
442
479
360
BRAZIL
Braskem
140
PVC
Carbocloro
231
355
210
Source: CMAI
240
Solvay
Indupa
MVC
140
128
EDC
Total PVC production capacities
( 1.169 k t / year)
• Mexico: 53%
• Colombia: 30%
700
600
500
400
Colombia
300
Mexico
200
Venezuela
100
0
1999 2000 2001 2002 2003 2004 2005
Source: CMAI,
Colombia´s Additional Emulsion PVC
Total Capacity, Jan 2006: 60.000 tons per year
C a p a c id a d d e p ro d u c c ió n d e P V C E m u ls ió n
U .S .A Y L a tin o a m é ric a
9 0 .0 0 0
8 0 .0 0 0
7 0 .0 0 0
TM S
6 0 .0 0 0
5 0 .0 0 0
4 0 .0 0 0
3 0 .0 0 0
2 0 .0 0 0
1 0 .0 0 0
e p vc
P o ly o n e
F o rm o s a
C o lo ri te
S o lv a y
B ra s k e m
P e tc o
P o li c y d
P ri m e x
80000
60000
20000
30000
20000
30000
30000
13000
PVC Internal Demand
(kt / year)
• Venezuela´s
production and
consumption was
dramatically
impacted in 2003
400
350
300
250
200
150
Colombia
100
Mexico
50
Venezuela
0
1999 2000 2001 2002 2003 2004 2005
Sources: CMAI, and analysis by PETCO
PVC Demand
Andean Countries and Chile
(Tons per year)
140000
120000
Colombia
Venezuela
Ecuador
Perú
Bolivia
Chile
100000
80000
60000
40000
20000
0
2001
2002
Sources: CMAI and analysis by PETCO
2003
2004
PVC Demand
Central America and the Caribbean
90
C o s ta R ic a
80
70
D o m in ic a n
Rep .
60
50
A ll
C a r ib b e a n
40
C e n tr a l
A m e r ic a
30
20
10
0
1999
2001
Sources: CMAI, and analysis PETCO
2003
2005
Plastics Consumption: PVC VS Others
(Colombia, 000 metric tons per year)
PVC
160
PP
140
LDPE
120
HDPE
100
80
•
PS
PET
60
40
20
0
1999
2000
Source: Acoplasticos
2001
2002
2003
PVC per cápita consumption, 2004
Kg./Person
Total World
Northest Asia
China
USA
West Europe
Latin America
Argentina
Brazil
Mexico
Colombia
Venezuela
0,0
4,6
6,7
5,23
21,1
7,01
3,4
2,8
3,9
3,7
4,2
1,8
5,0
Sources: CMAI, and analysis PETCO
10,0
15,0
20,0
PVC per cápita consumption / each
US$1,000 of GDP
2003
China
Europa
Ecuador
Colombia
CAN y Chile
Perú
Chile
Promedio Mundial
LATAM
Bolivia
USA
Venezuela
4,5
1,9
1,6
1,5
1,0
0,9
0,9
0,9
0,9
0,9
0,6
0,4
0,0
Sources: CMAI, and analysis PETCO
1,0
2,0
3,0
4,0
5,0
PVC applications market share, 2003
Pipe&Fittings
Profiles&Tubes
Bottles
Film&Sheet
Cables
All Others
100%
80%
60%
40%
20%
0%
World
Millions TM:
30
W Europe
5.5
USA
6.2
Sources: CMAI, World Bank and analysis by PETCO
China
1.5
Colombia
Mexico
0.13
0.33
PVC applications market share, 2003
Pipes
Profiles
Packing
Cables
Others
100%
80%
60%
40%
20%
0%
USA
LATAM
Sources: CMAI, World Bank and analysis by PETCO
AC and Chile
China
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.
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
Commercial opportunities
Medical devices
Commercial opportunities
Synthetic leathers
Commercial opportunities
• Non slip rug pads
• Multipurpose liners
• Place mats
Commercial opportunities
Traffic Cones
Commercial opportunities
Furniture
Commercial opportunities
Roofing titles
Commercial opportunities
Roofing
membranes
Commercial opportunities
Flooring
Commercial opportunities
Profiles for windows
and building
systems
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
The Colombian Award for
PVC Innovations