Songwon Group announces a positive performance for Q3 2010

Ulsan, Korea – December 17, 2010
• Songwon’s Q3 2010 results continued on a positive trend. Songwon Group achieved a net profit of 7.23 Billion KRW for Q3 2010 and a net profit of 20.54 Billion KRW for the first nine months of 2010.
• Songwon signed the definitive agreement to acquire a share in one of the major Chinese Thioesters manufacturers - Tangshan Baifu Chemical Co. Ltd.
• Songwon announced the signature of a MoU to acquire a major share of the Polymer Stabilizers business of HPL Additives Ltd. (India).
• Songwon announced the expansion of its antioxidants capacity at its Maeam facility with an additional 15.000 tons by August 2011, bringing the total to 70.000 tons.
• Songwon has announced the introduction of innovative solutions for PP fibers stabilization and for high heat, low colour and low emissions polyolefin applications.
• Service, cost competitiveness, product range extension and safety remain priorities.

Q3 2010 Results

Key Figures	Period July 1- September 30, 2010 Billion Korean Won	%
Sales Revenue	139.93
EBITDA	17.29	12%
Net Profit After Tax	7.23	5%

* Unaudited consolidated Songwon Group figures

Q3 2010 Results

Key Figures	Period April 1 - June 30, 2010 Billion Korean Won	Period July 1- September 30, 2010 Billion Korean Won	Growth %
Sales Revenue	139.66	139.93	-
EBITDA	17.38	17.29	-1%
Net Profit After Tax	7.03	7.23	+3%

* Unaudited consolidated Songwon Group figures

January-September 2010 Results

Key Figures	Nine Months ending September 30, 2010 Billion Korean Won	%
Sales Revenue	403.96
EBITDA	51.23	13%
Net Profit After Tax	20.54	5%

* Unaudited consolidated Songwon Group figures

Songwon Group, a leading global supplier of additives and other chemicals to the plastic industry, announces sales revenues close to 140 Billion KRW and a net profit of KRW 7.23 Billion for the third Quarter of 2010. Compared to the second Quarter of 2010, sales were slightly up, with a positive price development (+3%) and favorable currency (2%), partly offset by unfavorable mix (-4.5%). The Net Profit was also up by 3%, in spite of a continuous and significant increase of raw material costs, which were only partially offset by the positive price development.

Jongho Park, Chairman and CEO of Songwon Industrial Co., Ltd., stated: “We have reported once again a solid result for Songwon despite the fact we again had to partially absorb another significant increase of raw material costs: the positive price development was far from compensating this increase in costs. In addition shortage of some key raw materials is of some concern, but we believe that we are well covered with our back-integration and our strong suppliers’ base.” Mr. Park continued: “On the positive side we continue to see a strong demand which we anticipate will continue in 2011, in spite of a still unstable global economic situation which is also driving a significant volatility on the currency side.

We are now accelerating the implementation of our strategic plan: the definitive agreement for acquisition of a share with Tangshan Baifu Chemical Co. Ltd., a major Chinese supplier of thioesters; the signature of the MoU to acquire a major share of the Polymer Stabilizers business of HPL Additives Ltd. (India); the expansion of our antioxidants capacity at our Maeam facility with an additional 15.000 tons by August 2011, bringing the total to 70.000 tons. We continue to focus on innovation with the introduction of new additive solutions and on quality, service and regulatory affairs: in particular our Reach registrations are fully on track.”

Reader enquiries

Songwon Industrial Co., Ltd.
Walzmühlestrasse 48
8500 Frauenfeld
Switzerland

+41 52 635 0000

marketing@​songwon.com

www.songwon.com