Polyester Fiber Overview and Dynamics
May 2011
Bill Jasper, Chairman and CEO, Unifi
Unifi Global Operations
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Unifi Manufacturing Processes
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Innovation – PVA Brands & Partnerships

PVA portfolio represent 15% of consolidated sales in fiscal 2010

Products utilized in apparel, contract, home furnishings, military, socks and hospitality

Steady investment in R&D and commercialization of PVA products remains a strategic priority
PVA Brands
Retail / Brand Partnerships
Sustainability…
Performance…
Touch & Texture…
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Sustainability
Unifi believes in working hard to minimize its environmental impact by doing everything possible to achieve
the highest standards for sustainable textiles.
 Create environmentally friendly products
 Conserve & Reclaim Water
 Reduce Energy Consumption
 Use of Returnable Packaging
 Operate fuel efficient transportation fleet
Backward Integration
PET Bottles
Bottle
Washing
Bottle to Flake
Flake to Chip
Chip Extrusion
and Yarn
Spinning
Recycling Center
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Polyester DTY
Global Production by Region
Polyester Fiber: 33 Million Tons
Annual Growth: 4.0 to 5.0% (2010 to 2015)

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Nylon Fiber (Type 6 & 66): 3.3 Million Tons
Annual Growth: 1.0 to 1.5% (2010 to 2015)
Polyester production is ten times as much as nylon
Unifi Polyester Supply Chain Overview
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Polyester Raw Material Chain
GASOLINE
CRUDE OIL
MIXED XYLENES
PARAXYLENE
PTA
BOTTLES
POLYESTER
NATURAL GAS
ETHYLENE
ETHYLENE OXIDE
MEG
(0.86 X PTA) + (0.34 X MEG) = 1 Polymer
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FILAMENT &
STAPLE
FILM
PX (Para-xylene) – Feedstock to PTA
Top 5 Global PX Producers
Company
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Locations
Capaciity
% of World
million tons
Capacity
ExxonMobile
Americas, Europe, Asia
3.7
10%
Sinopec
China
3.7
10%
BP
Americas, Europe
3.1
9%
Reliance
India
1.9
5%
Nippon Oil
Japan
1.7
5%

Supply/demand became tighter in 2010 and 2011 due to unplanned production outages
and robust demand from PTA sector.

New projects are scarce for 2011/2012 supporting progressive tightening of global
operating rates above mid-80’s.

High energy cost set the floor for PX prices
PTA
Top 5 Global PTA Producers
Company
9
Locations
Capaciity
% of World
million tons
Capacity
BP
Americas, Europe, Asia
8.1
17%
Formosa
Taiwan
3.0
6%
Reliance
India
2.2
4%
Yuandong
China
1.9
4%
Samsung
Korea
1.8
4%

Strong operating rates is driven by robust global polyester demand

PTA supply tightness expected to last for the rest of the year, due to delays in new
projects in Asia/China.
MEG
Top 5 Global MEG Producers
Company
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Locations
Capaciity
% of World
million tons
Capacity
SABIC
Saudi Arabia
5.8
21%
MEGlobal
Americas, Europe, Asia
2.8
10%
Nanya
Asia, Americas
2.5
9%
Shell
Americas, Europe, Asia
2.3
8%
Honam
Korea
1.2
4%

A combination of planned, unplanned outages and closures plus feedstock limitations
(EO), and speculation in 2010/YTD 2011 kept supply just slightly ahead of demand.

No new MEG plants until 2013.
Polyester Raw Material Drivers

Global supply/demand of key ingredients



Energy cost

Crude oil

Natural gas
Multiple product effect

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New plant start-ups or expansions, plant shut-downs (planned and unplanned),
Inventory levels, trade flows, regional demand patterns
Variety of products compete for the same molecules used by the textile polyester
industry – PET bottle, anti-freeze, fertilizers, gasoline, and chemicals
Polyester Raw Material Trends
1. Tight PX & MEG (90% OR)
2. Hurricane Katrina
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4
9
2
3
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3. Replace MSTDB in
gasoline blend resulting in
surge in MX / PX demand
4. World-scale MEG plant
explosion in Middle East
5. Crude oil surge ($140/bbl)
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6
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6. Significant demand and
crude drop due to global
economic fallout
7. Global demand recovery
8. World-scale MEG plant
shutdown in Middle East
9. Multiple factors despite
manageable crude range
a. Robust global demand
b. Tight PX, PTA, & MEG
supply (90+% OR)
c. No major RM plant coming
on line in 2011/12
d. Cotton impact
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Polyester Raw Material Outlook
Though pricing stabilization is projected to return during April-June quarter,
pricing volatility will continue….
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THANK YOU!