PAKEL KİMYA TEKSTİL AŞ NEW ADDRESS OF ACRYLIC FIBER

PAKEL KİMYA TEKSTİL AŞ

NEW ADDRESS OF ACRYLICFIBER


Yumurtalık Free Zone Location



The Best LocationThe Adana Yumurtalik Free Trade Zone enables you to take full

advantage of Turkey's unique geographical position.Located in Turkey on the Gulf of Iskenderun at the juncture of Adana and Hatay provinces,

its ideal site offers close contact to three continents.

The markets of Europe, the Middle East, North Africa and the Near East are readily accesible through the transport opportunities offered in the free trade zone.The Adana Yumurtalik Free Trade Zone is the natural maritime gateway for agricultural and industrial trade generated by

Turkey's massive South East Anatolian Project (GAP).


TAYSEB FREE ZONE


The Best Opportunities The Adana Yumurtalik Free Trade Zone is tax-exempt. Your earnings and revenues as well as your operations will not be subject to corporate, income , value-added or customs tax,nor any other similar tax or duty. Moreover ,there are no withholding tax on salaries,interest earnings or profit shares.Payments may be made in any convertible currency at the Adana Yumurtalik Free Trade Zone. Investors can transfer their personal or corporate earnings freely to anywhere in Turkey or the world without any difficulty, without paying any tax or duty, and without having to obtain permission from any government department.Numerous advantages offered at the Adana Yumurtalik Free Trade Zone include: up to 100% foreign investment, recruitment of foreign directors and specialists, transfer of facilities or businesses to other invertors, minimal red tape and bureucracy through a one-stop service provided by the Free Trade Zone Authority, favorable land prices, easy access to the domestic market and provision of low-cost electrical energy.The Port of Toros is a multi-purpose seaport on Turkey's Mediterranean coast, with the capacity to serve ship up to 110,000 DWT. The largest privately run port in Turkey, it also offers the most suitable conditions. The Adana Yumurtalik Free Zone will meet all your commercial transport needs thanks to the Port of Toros and the Adana Airport as well as the Ceyhan Railway and a motorway connection direct form its gates. The Adana Yumurtalik Free Trade Zone provides the most comfortable and the fastest links to the outside world.Built on 4,500,000 square metres, the size of the Adana Yumurtalik Free Trade Zone makes it one of the largest free trade zones in Turkey and the world. It is the first and only Turkish free trade zone designed to serve heavy industry. With unlimited space and an infrastructure of electricity, water and communications, it provides opportunities for every type of industrial or commericial business, including heavy industry and transit operations.



General Company DescriptionThe project will be realized in TOROS Adana Yumurtalık Free Trade Zone.The port of TOROS the largest Turkish seaport under private management offering efficient loading and unloading capacity, for the bulk cargo the terminal is capable over 17,000 tons per day.The railway connection is 16 km far from zone but plans are to extendit in to zone in near future.The land area of the project is 100,000 m2 including the land necessary for future expansions and is rented for 30 years period.



More About PAKEL ProductionThe SNIA process was designed during the process development phasein 1960 in order to reach an acrylic fiber production process only “Onestep”. This process means that the liquid monomer is transformed infiber without any process stop, so the production goes from mixturepreparation department to fiber baling area directly without anyintermediate product storage. The monomer is mixed in the spinningsolvent before polymerization and the produced poly acrylonitrile (PAN)dissolved in dimethilformamide is ready for spinning process. Inspinning process the fiber is shrunken in hold drum dryer, no ailing stepis required.With SNIA process it is possible to produce any type of fiber (wool and cotton type from 1 to 17 den per filament) and several specialties (tow,staple, dyed Tow and staple, high bulk fiber)




PAKEL Acrylic plant aimed to become a main player in Acrylic fibremarket in South East of Turkey-Iran & Syria with 30.000 capacity at first step and expand it in future to 75.000 Tons

PAKEL believe World demand/supply balance for Acrylic fiber showsthat future of this type fiber will be attractive in Far East and MiddleEast and there will be a decrease in supply and demand in USA andEurope



*2002 Started in ADANA –Yumurtalık Free Zone*30,000 Ton Anually capacity*20,000 Ton Dyed Fibre 10,000 Ton Ecru*Total Investment 45,750,000 USD*Realized Investment 30,000,000 USD*Had to be stopped in 2005 due to financial insufficieny*Need to 15,750,000 USD



•Annual Cost Annual Income1.ACN 40.000.000 1. Price of 1 kg Undyed Fibre 2.40 2.Chemicals 9.000.000 2.Price of 1 kg Dyed Fibre 2.75 3.Labor 2.100.000 4.Rent 250.0005.Maintenance 750.000 Undyed Fibre 18.000 ton6.Energy 2.900.000 Dyed Fibre 8.000 ton

TOTAL : 55.000.000 USD TOTAL 65.200.000 USD ANNUAL ESTIMATED PROFIT : 10.200.000 USD


PAKEL PROJECT

• PAKEL Project:Based on ‘SNIA VISCOSA’process by Noy Engineering Italy.•Basic and detail engineering done by Pro-Team Italy•Detailed engineering supported by FOSTER WHEELER B.•Automation system supported by FAST & FOXBORO.


PROJECT STATUS

PAKEL PROJECT STATUS SUMMARY OF PROGRESS ACHIVED UPTODATE

As of 31.March.2005

A-ENGINEERING A-1 Basic engineering Completed A-2 Detail Engineering Comleted

B- CIVIL

As per civil installation drawings all process and utility building has been erected. (Reinforce-concrete and steel) process building ready for piping, mechanical, electrical equipments installation.

PROJECT STATUS

C- EQUIPMENT

Most of the equipments such as column, drums,exchangers, pumps machinery has been procured and big part of them arrived at site, utilities systems are ready for order. All the necessary piping and fittings procured and arrived to site for erection works.

All electrical instrumentation, steel structures are included in this work discipline.

PAKEL KİMYA TEKSTİL A.Ş.

E__PAKELP~1_IMG_0005.jpg

PLANNED INVESTMENT&REALIZED

(USD)

Investment Items Budgeted Realised Items Will be Realised

Building/Land 7.000.000 6.650.000 350.000

Machinery Equipment 19.500.000 12.490.000 7.010.000

Tanks+Piping&Fitting+Pipe Rack 3.000.000 2.530.000 470.000

Erection Mechanical and elect 5.800.000 1.440.000 4.360.000

Automation & Elect.Items 5.050.000 3.200.000 1.850.000

Utilities 2.580.000 1.075.000 1.505.000

Engineering 2.500.000 2.300.000 200.000

TOTAL 45.430.000 29.685.000 15.745.000

PAKEL KİMYA TEKSTİL A.Ş.

PAKEL KİMYA TEKSTİL AŞRealized Jobs

Construction 6,650,000 Land 850,000 Building 5,800,000 Machinery & Equiepment 12,490,000 Polymer plant Mac.Import 1,500,000 Polymer plant Mac.Turkey 540,000 Ploymer plant modification 400,000 Spinning line import 7,800,000 Spinning line Turkey 450,000 Mechanical modernization 650,000 Dyeing line 350,000 Washing & Drying line 420,000 Crimping line 270,000 Baling press 110,000 Laboratoary - Steel Works (Tanks+Piping+Pipe Rack) 2,530,000 Pipe rack 580,000 Tanks 1,000,000 Piping & Fitting 950,000

PAKEL KİMYA TEKSTİL AŞRealized Jobs

Auotomation & Electrical Items 3.200.000 Polymer plant 1.450.000 Fibre plant 1.000.000 High Voltage Siemens - Low Voltage Siemens 700.000 Cables - DCS system 50.000 ERP system - Erection 1.440.000 Mechanical Erection 1.390.000 Electrical Erection 50.000 Utilities 1.075.000 Fire Fighting 470.000 Water softning 35.000 Co Generation & Steam 140.000 Nitrogen Generation - Chiller 300.000 Cooling Tower 130.000 Waste Water Treatment System - Emgineering 2.300.000 Basic & Detail By Proteam 1.450.000 Detailed By FWC 750.000 Mechanical Engineering by Pakel 100.000 Total 29.685.000

PAKEL KİMYA TEKSTİL AŞWill be Realized Works

Costruction 350.000 Land 150.000 Building 200.000 Machinery & Equipment 7.010.000 Polymer plant Mac.Import 200.000 Polymer plant Mac.Turkey 310.000 Polymer plant modification 850.000 Spinning line import - Spinning line Turkey 700.000 Mecanical modernization 2.100.000 Dyeing line 500.000 Washing & Drying line 480.000 Crimping line 480.000 Baling press 840.000 Laboratory 550.000 Steel Works 470.000 Pipe rack 170.000 Tanks 200.000 Piping & Fitting 100.000

PAKEL KİMYA TEKSTİL AŞWill be Realized Works

Auotomation & Electrical Items 1.850.000 Polymer plant 150.000 Fibre plant 100.000 High Voltage Siemens 800.000 Low Voltage Siemens - Cables 300.000 DCS system 300.000 ERP system 200.000 Erection 4.360.000 Mechanical Erection 3.110.000 Electrical Erection 1.250.000 Utilities 1.505.000 Fire Fighting 30.000 Water softning 115.000 Co Generation & Steam 760.000 Nitrogen Generation 100.000 Chiller - Cooling Tower - Waste Water Treat System 500.000 Emgineering 200.000 Basic & Detail By Proteam - Detailed By FWB 50.000 Mechanical Engine.By Pakel 150.000 Total 15.745.000


INVESTMENTS FORECAST

*Pakel needs at least 9 months to finish remaining part of project

*Pakel needs totaly 15.745.000 USD

Cash 11.080.000 USD

LC 4.665.000 USD

Total Cash LC

1. Month 525.000 525.000

2. Month 855.000 855.000

3. Month 920.000 920.000

4. Month 1.335.000 985.000 350.000

5. Month 1.815.000 1.225.000 590.000

6. Month 1.930.000 1.330.000 600.000

7. Month 1.910.000 1.260.000 650.000

8. Month 1.685.000 1.035.000 650.000

9. Month 1.130.000 830.000 300.000

10.Month 1.220.000 795.000 425.000

11.Month 1.460.000 610.000 850.000

12.Month 960.000 710.000 250.000

Total 15.745.000 11.080.000 4.665.000

Documents

PAKEL KİMYA TEKSTİL AŞ NEW ADDRESS OF ACRYLIC FIBER