Project Name: 1 million tons per annum bottle-grade polyethylene terephthalate cut pieces (800,000 tons PET, 200,000 tons RPET) and by-product 2,178 tons formaldehyde project

Construction Unit: Kesen (Nantong) New Materials Co., Ltd.

constructive

Construction Site: South side of Wei Er Road and West side of Jing Er Road, Yangkou Port Industrial Zone, Rudong County, Nantong City, Jiangsu Province.

Land area: 138062.66 square meters

Total Investment: Phase 1 total investment of 1,026.76 million yuan, Phase 2 total investment of 1,313.47 million yuan, total investment of 2,340.23 million yuan; of which, environmental protection investment is approximately 11.25 million yuan, accounting for 4.8% of the total investment.

Construction Content: This project proposes to build a facility with a total capacity of 1 million tons per year of bottle-grade polyester chips (800,000 tons PET, 200,000 tons RPET) and 2,178 tons of acetaldehyde as a byproduct. The project will be constructed in two phases, with the phased construction content as follows:

\* 2 year old PET production line (including ethylene oxide process and polymerization process), 1 set of aliphatic alcohol recovery unit (1st year production 908.3 tons, 2nd year production 1269.7 tons, 3rd year production 2178 tons), and corresponding public engineering and supporting facilities.

Phase 2: Two PET production lines, each with an annual capacity of 200,000 tons (including esterification and polymerization units), one RPET production line with an annual capacity of 200,000 tons (including bottle flake recycling and polymerization units), and corresponding utilities and auxiliary facilities.

The PET production equipment at the OBHE plant uses the specialized technology of Yancheng, Zhejiang, OBHE. The decahydrofuran dehydrating equipment at the PET production plant uses the exclusive technology of KOKSAN Group. The equipment has greatly reduced the running costs and energy consumption by replacing nitrogen with compressed air in the high-polymer decahydrofuran dehydrating process.

As a leading enterprise in the green packaging industry chain in Central Asia and West Asia, Turkey's Kosen Group supplies food-grade polyester packaging products to over 100 countries in North Africa, the Middle East, West Asia, and Europe. Its cooperative clients include globally renowned beverage and oil producers such as Coca-Cola, Pepsi, and Nestlé.

In November 2024, Kosen Group will invest $710 million to build a "green polyester new materials" project with a total capacity of 2.2 million tons in five phases. The first phase includes two production lines for bottle-grade polyester chips, each with an annual output of 200,000 tons. This will be the first production line in China to use the liquid phase blending one-step method to produce bottle-grade polyester chips. Once in production, it will require approximately 1,000 tons of PTA raw materials daily.

Kohtechn (Nantong) New Materials Co., Ltd., established on September 2, 2024, is a subsidiary set up by Koç Group in China to implement this major project.

According to the project schedule, Phase I is expected to complete the foundation excavation by April, with the main construction starting at the end of the month. The polyester building is scheduled to be topped off in August, and handover for installation will be completed by the end of September. The entire project is set to be completed and operational by June next year. Once the project reaches its designed production capacity, it can achieve an annual output value of 2.8 billion yuan.