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Research & Development — Where Innovation Thrives

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Research & Development — Where Innovation Thrives

Research & Development Page 3

Making a Difference Page 4

Diversity of Thought to Maximize Innovation Page 7

Fluorochemicals – Global Warming Solutions Page 8

Hydrogen Peroxide Brightens A Sustainable Future Page 11

Thiochemicals – Greening the World Page 12

Arkema Coatings Resins (ACR) Page 15

PVC Additives & Sustainability Additives Page 16

Polymers Offer Flexible Solutions Page 19

Technical Polymers Page 20

Fluoropolymers Page 23

UV Resins for Energy Savings Page 24

Corporate Research Offers Exciting New Developments Page 27-28

Analytical and Systems Research Page 31

Process Technology Adds Innovation Page 32

A State-of-the-Art Pilot Plant Makes Innovation a Reality Page 35

Information Resources at Your Fingertips Page 36

Table of Contents

Innovation. It thrives at Arkema Inc. in the hearts and minds of our R&D researchers and scientists. In a planned effort built by scientists working together in a collaborative environment, we develop state-of-the-art specialty chemicals and polymers that provide customers with practical solutions to the challenges and opportunities they face. As a company, Arkema is committed to developing solutions today for tomorrow’s societal needs. We have established four priorities for our R&D focus:

• Water management

• Lightweight materials

• Materials for new energies

• Renewable materials

It is an inspiring time to be a part of a future-oriented R&D organization working to make a difference in our planet’s future. Arkema is committed to excellence, the pursuit of safety and environmental protection, optimized performance of its industrial tools, and best-in-class competitiveness.

The world is our inspiration. We encourage you to learn more about us. Imagine what your innovation can make possible, and then make it real.

Dr. Ryan Dirkx Vice President of Research & Development

Welcome to ArkemaResearch & Development

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We strongly believe that R&D is the growth engine of a technology enterprise. It is an investment that can be a major contributor to earnings. We work closely with our businesses and customers to fuel their product development and help them realize their goals. Our work covers the whole spectrum – from exploratory work to projects in conceptual, feasibility, developmental, and commercialization phases. In addition, a significant portion of our work is aimed at application development and providing technical support to our customers and to our manufacturing facilities.

As a part of Arkema group, a global chemical enterprise headquartered in France, we work closely with their business and technology organizations, including the company’s worldwide research laboratories. To optimize their investment value, our research portfolios are managed for growth potential, quality, efficiency and speed. Therefore, we make an effort to maintain state-of-the-art research methodologies and capabilities. Our R&D activities take our products to the next level; developing the next generation of technology for our customers and the marketplace.

R&D fulfills a critical role for innovation and sustainable growth – both core strategies at Arkema. Our R&D community is proud of our emphasis on safety, health and the environment. We support the company’s efforts in product stewardship, and we strive to be a good neighbor in all our communities.

Making a Difference

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Arkema Inc. Research & Development relies on a broad range of technical disciplines such as chemistry, chemical engineering, polymer synthesis and polymer processing. Our researchers and scientists consist of chemists, chemical engineers and many other disciplines. We encourage publication and presentation of technical work to enhance communications with our customers and the technical community. By coming together from multiple environments, cultures, industries and disciplines, we build on our success with every new development.

For a full list of our technical capabilities that illustrate our areas of expertise and breadth of our work, visit our website.

Combining Multiple Disciplines and Diversity of Thought to Maximize Innovation

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Fluorochemicals — Global Warming Solutions

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Arkema’s Chlorofluorochemicals (CFCs) helped establish air-conditioning, refrigeration and effective foam insulation as essentials of modern life.

Following the implementation of the Montreal protocol to phase out ozone depleting chemicals such as CFCs, Arkema introduced hydrochlorofluorocarbon (HCFCs) and later hydrofluorocarbons (HFCs) as zero ozone depleting alternatives.

Arkema is a leading worldwide supplier of hydrofluorocarbons (HCFCs and HFCs) used in air-conditioning, refrigeration and foam applications. However, some HFCs have relatively high global warming potential (GWP) and are coming under closer scrutiny due to the increasing concern over global climate change. The focus now is the search for the next generation of environmentally sustainable working fluids with negligible direct environmental impact in terms of both ozone depletion and global warming potential.

In this area, researchers will:

• Develop and improve both gas and liquid phase fluorination processes

• Develop novel catalysts for fluorination reactions

• Utilize modeling and characterization techniques in the development of new refrigerant and foam insulation fluorochemicals

• And more...

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As a basic chemical building block and a simple oxidant, hydrogen peroxide finds use throughout chemical and related industries. Applications recently expanded, as it was recognized as an environmentally benign chemical that decomposes to oxygen and water. The pulp and paper industry represents the major user, but it also serves in a variety of applications. Aside from being a chemical intermediate, it is used in waste- and drinking-water treatment, food processing, aseptic packaging, semiconductor manufacturing, rocket fuels, and formulations for a variety of cleaning and personal care products.

Research & Development in this area focuses on:

• Stabilization of hydrogen peroxide to allow use in new products and markets

• Formulation to integrate hydrogen peroxide into our customers end products

• Development of new peroxygen-based technologies that will provide performance – or environmental benefits relative to current commercial alternatives

• And more...

Hydrogen Peroxide Brightens A Sustainable Future

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Thiochemicals Research is largely based on the organic and inorganic chemistry of sulfur. Many of our products (dimethylsulfide, methanesulfonic acid, dimethylsulfoxide) occur naturally as part of the atmospheric, marine and terrestrial sulfur cycles.

As part of our green chemistry initiative a large amount of our chemistry is based on products that reduce environmental impact. For example, Scaleva® is an environmentally-friendly descaling agent for dairies, breweries and industrial/institutional cleaners.

Areas of focus here are:

• Environmentally-friendly descaling agents

• Soil fumigants

• Polar aprotic solvents

• Trithiocarbonate-based RAFT agents for novel polymer architectures and properties

• And more...

Thiochemicals — Greening the World

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All industry segments served by Arkema Coating Resins are driven toward reducing their environmental footprint, and ACR is leading the way with new products that greatly reduce or eliminate the need for fugitive solvents during application.

ACR is a leading supplier of polymer technologies including waterborne, high solids and powder resins along with solvent-borne resins and high performance coating additives for formulators of architectural coatings, industrial finishes, construction products, traffic paints, sealants, adhesives, inks, floor care and graphic arts products.

While improving our environmental footprint, ACR R&D also seeks to further improve coatings performance by organizing around several market-driven innovation themes including: improved durability, reduced total system cost, smart coatings and improved end-user coating application experience.

In this area, research focuses on:

• Resins based on biorenewable feedstocks

• Reducing emissions from our manufacturing processes

• Polycondensation

• Free radical polymerization

• And more...

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Table of Contents

Arkema Coating Resins (ACR) – Enhancing Energy Efficiency, Durability & Finish

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PVC Additives & Sustainability Additives

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Functional Additives focuses on working with industrial customers to solve their problems, offer differentiated products and technologies, and improve product performance. Our polymer additives enhance the properties of polymers, offering higher impact resistance, better toughness, increased melt strength, faster processing speeds, and increased heat stability. Our glass coatings technologies lead to improved glass containers, more energy efficient windows and transparent conducting oxides, a critical component for photovoltaics, lighting and displays. Our organic peroxides generate radicals that initiate polymerizations to produce polymers such as polyethylene, polystyrene, PVC and acrylics. The radicals are also used to initiate crosslinking reactions in rubber, polymers and composites where they bring improved physical and chemical properties.

Functional Additives is committed to developing sustainability additives that will lead to more efficient use of resources and energy, help manage or create less waste, extend the life of existing products and develop and grow new products to harness new or renewable sources of energy and materials. Several disciplines are essential to our ability to succeed in these research efforts:

• Polymer and Material Science: Expertise in polymer reactivity, processing, blends, and characterization provides the foundation for all of our work in polymer additives, polymer transformation, polymer modification, and crosslinking

• Polymer Synthesis: A common theme in this area is the design and synthesis of specific polymer architectures to achieve targeted properties

• Chemical vapor deposition (CVD): CVD techniques are used to deposit metal, metal oxide and metal nitride films onto glass or polymer substrates to improve optical and functional properties

• Organometallic and Organic chemistry: These disciplines provide the basis for the design of new precursors for CVD and for the development of new organic peroxide initiators and new organotin compounds for use as stabilizers and catalysts

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Polymers Offer Flexible Solutions

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Altuglas International is a global leader in PMMA (polymethyl methacrylate), manufacturing approximately 20% of the world’s PMMA. We market our resin and sheet lines of business under the Plexiglas® brand in the Americas and Altuglas® in Asia, Europe, Africa, and the Middle East. Worldwide Altuglas markets capstocks under the SolarKote® brand and polycarbonates under the Tuffak® brand.

Altuglas Research uses technology from multiple disciplines to improve our products and processes to better serve the current and future needs of our customers. Our scientists and engineers address challenges related to product development, application development, process development, and technical service.

Product development generates and develops ideas for new and improved acrylic products, while application development engineers help to demonstrate the performance of our new or existing products in new applications. Our engineers work closely with original equipment manufacturers (OEMs) to test fabricated parts to demonstrate that they provide the desired performance. Process development engineers bridge the gap between product development and manufacturing plants. They develop and scale-up processes for new products while improving those of current products.

Researchers will focus on:

• Development of high performance green polymers

• Preparation of new surfacing materials with tailored adhesion, toughness and surface properties

• Plastics for use in emerging renewable energy applications

• Creation of multiphase materials to manipulate light

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Technical Polymers

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Arkema Inc.’s Technical Polymers Research group is dedicated to providing solutions to improve the performances of our Rilsan® polyamide resins.

Our scientists and engineers are experts in melt-processing of Rilsan® and in resin modification through compounding to meet specific market requirements. They operate a full range of melt-processing equipment such as injection molding, pipe and tubing extruders, cable coatings extruders, and a variety of compounding equipment. They also operate the best available testing equipment including a robotized system to assess mechanical properties.

Our Technical Polymers Research group in King of Prussia, Pa., works in close collaboration with our research center in Serquigny (France), for all basic research on Rilsan® polyamides, and with specific competencies in melt-processing techniques and computer-aided design. They also have a close relationship with our research center in Pierre-Benite (France), and work closely with our team in Kyoto Technical Center (Japan) and our development teams in Europe, the U.S. and Asia.

Our most recent developments illustrate how we continuously look for opportunities to bring value to our customers through new products or applications:

• Rilsan® polyamide 11 pipes have been successfully installed in pilot installations for natural gas transportation at pressures up to 200 psi

• Rilsan®/PE bi-layer rotomolded containers with very low fuel permeability for fuel tanks used in boats, lawn mowers, or snowmobiles

• Cavitation-resistant coatings with Rilsan® fine powders are well-suited for the potable water industry

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FluoropolymersThe Fluoropolymers Research Group is dedicated to developing solutions to improve and extend the performances of our Kynar® fluoropolymers to meet existing and future customer needs.

The research group includes a global multi-disciplinary team of scientists working in areas from new molecule synthesis and process scale up to application development and customer technical support. The labs contain state-of-the-art equipment needed for scientists to conduct fluoropolymers synthesis, material characterization, material transformations and application testing in customer processes.

In North America, we have teams focusing on: synthesis & process optimization, industrial application developments and coating application developments.

Our most recent developments illustrate how we continuously look for opportunities to bring value to our customers through new products and applications such as:

• Low VOC waterborne Kynar Aquatec® resins for a range of OEM and renovation coating applications

• Multi-layered Kynar® Films for protecting other substrates, like photovoltaic cells, from weathering

• Grafted Kynar® resins with excellent adhesion to polyamides, polyethylene and other plastics or to metals

• Kynar® HSV resin developed as a binder for lithium ion batteries

• High purity Kynar® PVDF resins for use in bio-processing and pharmaceuticals production

Our Fluoropolymers Research group in King of Prussia, Pa., works in close collaboration with Fluoropolymers Research teams in Serquigny (France), Pierre-Benite (France), and Kyoto (Japan), as well as Arkema’s other research labs, universities, national labs and industrial partners.

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Sartomer, a business unit of Arkema, is a leading global supplier of specialty (meth)acrylate monomers and oligomers and other specialty curable resins for ultra-violet (UV), electron beam (EB), peroxide, epoxy and hybrid cured-in-place technologies. Sartomer’s 100% curable products form the foundation for cured-in-place systems including inks, coatings, adhesives and rubber.

UV and EB curing takes place in a fraction of a second by crosslinking Sartomer’s 100% curable products onto a substrate. UV/EB curing offers high productivity and conserves energy and space and is friendly for the atmosphere since no Volatile Organic Compounds (VOC) or Green House Gasses (GHG) are emitted in the process. Users can select from a wide range of monomers and oligomers to custom design cured-in-place polymers that provide a wide range of properties including toughness, abrasion resistance, hardness, gloss, weatherability or just about any other desired performance characteristic on your substrate of choice.

Sartomer’s name means “tailor-made part”. We are unique; specifically structured to accommodate the special needs of each individual customer, large or small. We draw from hundreds of products and global resources and takes pride in our ability to listen to customers and work with them to enhance their businesses by making exciting new, innovative discoveries in products and applications technologies.

UV Resins For Energy Savings

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Our Corporate Research group is responsible for longer term developments that are important to the future growth of Arkema and strives to identify and develop breakthrough technologies through:

• Driving collaborations with universities and government laboratories

• Establishing relationships with global experts • Pursuing government funding in support of research activities

aligned with strategic priorities • Identifying and developing technology platforms

as potential growth engines such as:

• Nanostructured materials • Next generations materials for alternative energies • Supramolecular chemistry • High-performance polymers and composites for

lightweighting applications • Membranes for applications such as water filtration/

purification

Additionally, Corporate Research manages new product developments that are not yet a fit for our existing business units. These include our Graphistrength® carbon nanotubes, Nanostrength® block copolymers, Reverlink® supramolecular technology, and Polyether ketone ketone (PEKK).

Corporate Research Offers Exciting New Developments

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Graphistrength® carbon nanotubes used in applications that demand mechanical strength enhancement, electrostatic antistatic dissipation (ESD), catalyst support, and energy storage (batteries and capacitors).

Polyether ketone ketone (PEKK), a high-temperature, high-performance thermoplastic polymer used in high-tech applications and markets, such as aeronautics and electronics.

Reverlink® supramolecular technology, which enables polymer-type behavior from small or medium-sized molecules linked through thermo-reversible physical bonds and/or polymers with very unique properties such as self-healing and extreme dampening.

Nanostrength® block copolymers made up of two or more chemically distinct segments and Apolhya® a high performance polyamide grafted on a polyolefin backbone, which inherently self assemble at the nanometer length-scale.

Corporate Research Offers Exciting New Developments

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Research at Arkema requires knowledge of the chemical composition, structure, and chemical and physical properties of our products. Rapid and accurate analysis and modeling of complex experimental and process data lead to successful design of new products and optimization and safe operation of manufacturing processes.

Our scientists are graduates from leading universities around the world. This assembly of experts provides in-depth information using all of the sub-disciplines of analytical chemistry and a wide variety of state-of-the-art data analysis techniques. We are equipped with a broad range of modern, highly sophisticated instrumentation representing a capital investment of nearly $12 million. Instrumentation techniques include the latest available, such as surface analysis, electron microscopy, spectoscopy, thermal analysis, mass spectrometry, chromatography and rheology. Many times we combine these techniques to achieve more powerful investigative tools.

Analytical and Systems Research

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Process Technology Adds Innovation

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Process Technology develops new manufacturing processes that position Arkema to be cost competitive and cutting-edge. As an example, the Sulfox expansion at our plant in Beaumont, TX, further positions us as a global leader in thiochemistry. The Sulfox plant produces MMP, an integral ingredient in an advanced animal feed supplement which is critical to meeting the world’s food shortages.

Process Technology includes:

• New Product, Scale Up and Commercialization: Working with Research and our Pilot Plant to successfully take a research concept and convert it into a manufacturing process

• New Technologies: We are the key driver behind developing new manufacturing processes that position our manufacturing plants to be cost competitive

• Capital Projects: We are active in almost all stages of most plant capital projects, from concept development through startup

The Process Technology group is composed of engineers of many disciplines, mostly chemical engineers. It is a subgroup of the larger Engineering and Technology division and has a flexible organization; in most cases there is dual reporting to both the Engineering and Technology division and the business units.

Engineers are typically situated in one of three sub organizations:

1) The Central Technology Group; a group of technical experts that work across multiple business units and are applied as the workload dictates

2) Local production site technology; engineers that are focused on one particular production site

3) Division process technology engineers who are located within a specific business unit and typically work across multiple plants within that business unit.

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The Pilot Plant fills the technology gap between a successfully demonstrated research concept and its practical implementation in a chemical facility. The Pilot Plant also works directly with plants and other groups to fine-tune their manufacturing processes and identify systems that can help facilities operate more safely.

A hive of activity, the Pilot Plant is responsible for demonstrating new technologies, creating design information for new processes, assisting plants in developing safe operating parameters and preparing customer samples for continuing product research.

The Pilot Plant helps to bring new products to market. When a research group or a business unit requests a specialty product or has a particular need, the Pilot Plant forms a team for the project from its staff of chemical engineers and technicians. The team normally works as part of a larger group (with representatives from business, product safety, management, engineering, etc.) to address all the issues that impact the project. The Pilot Plant’s role is to develop the safest and most efficient technology for production. Some of its successes in this area include developing processes to commercially produce Kynar® polyvinylidene fluoride resins, impact modifiers, stabilizers, Plexiglas® molding resins and organotin glass coatings.

A State-of-the-Art Pilot Plant Makes Innovation a Reality

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Information Resources provides many forms of information for Arkema Inc. A “virtual library” is available in addition to providing some of the traditional library services, including access to print media and electronic subscriptions.

Information Resources provides access to Internet, library and proprietary sources for research and compilation of literature and patent reviews in support of current products and research activities.

End-user tools such as SciFinder® software and PatBase® database (U.S. and foreign patents) enable R&D staff to directly access external and internal databases. Tools like LexisNexis® were implemented to provide business staff with direct access to competitive intelligence sources.

To monitor technical developments and market activities, we develop customized profiles that are automatically executed against commercial databases. These bulletins are delivered periodically in electronic or print formats and currently include U.S. imports and exports of competitors, new patents in critical areas of technology, current prices of essential commodity chemicals, and publications in journals on research topics.

The Library collection includes electronic access to technical journals from major scientific publishers and books from the Knovel® Library’s comprehensive collection. Information is readily available primarily in electronic format from abstracts and indices and market studies. Lastly, we can facilitates the acquisition of documents not available in our collection, such as foreign patents, translations, article reprints and books both in and out of print.

Information Resources at Your Fingertips

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RESEARCH CENTER AND CORPORATE OFFICES 900 First AvenueKing of Prussia, PA 19406610-878-6500www.arkema-inc.com

Plexiglas®, KYNAR®, KYNAR Aquatec®

are trademarks of Arkema, Inc.Sci Finder is a register trademark of American Chemical SocietyKnovel is a register trademark of Knovel Corp.

Altuglas®, Tuffak®, Rilsan®, Solarkote®, Graphistrength®, Nanostrength®, Reverlink®, Apolhya® is a trademark of Arkema. Pat Base is a register trademark of RWS Information Ltd., and Minesoft Ltd.