DuPont (E. I. du Pont de Nemours and Company) Business Report Business Report up until FY ended Dec. 31, 2010

Business Highlights

Recent Years

Contracts

<2010>
-In April 2010, the Company announced that injection-molded, low friction bushings made of DuPont Vespel TP polyimide are used in exhaust gas recirculation (EGR) systems produced by Gustav Wahler GmbH & Co. KG of Germany, a supplier of engine related products. The polyimide combines excellent wearing resistance and dimensional stability under high temperatures, supporting the smooth operations of the EGR valves including their fast and precise opening and closing. These valves are located behind the precatalytic converters of four and six cylinder gasoline engines. (From an article in the Nikkan Jidosha Shimbun on April 16, 2010)

-In 2010, a new car air conditioner refrigerant developed jointly by the Company and Honeywell is likely to be used as a standard product by global automakers. The HFO-1234yf fluorinated gas solution is designed to meet European Union's low global warming potential (GWP) requirements, which will become effective in 2011. Carbon dioxide had also been considered as one of the potential candidates for an alternative refrigerant to comply with the world's most stringent GWP regulations. But the HFO-1234yf was finally chosen as the new global standard for its high levels of vehicle fuel economy and cost efficiency it can offer. The Company and Honeywell are planning to start joint production of HFO-1234yf in 2011, aiming to establish a stable production structure for the international market by 2015. (From an article in the Nikkan Jidosha Shimbun on June. 28, 2010)

<2009>
-In December 2009, its Japanese subsidiary announced its plant based polymer fiber "Poly Trimethylene Terephtalate (PTT)" has been selected as material for interior components of Toyota's "SAI." This is the first time in the world that plant-derived polymer material has been used in interiors of a commercial production car. It is adopted for outer skins of the model's ceiling, sun visors and pillar garnish, as well as of genuine optional floor mats. The PTT fiber is made of the Company's Sorona polymer. (From an article in the Nikkan Jidosha Shimbun on Dec. 19, 2009)

-In September 2009, its Japanese subsidiary announced on September 2 that its bio-based material has been selected by Toyota Motor Corp. for the new Prius' floor mat as an optional luxury type for factory-installation. The material is a fiber version of the Polytrimethylene terephthalate (PTT) DuPont Sorona Polymer, made through fermentation of plant-derived sugar. Compared to petroleum-derived nylon fibers used for conventional floor mats, CO2 emission through production will be reduced by over 50%. According to the Company, the material's texture and other features in addition to this ecological advantage have been highly appreciated by Toyota. UNIPLAS Corp., Nishi-ku, Osaka, which holds the yarn-making and sales license of the Sorona Polymer in Japan, will produce the yarn, which will be made into floor mats by a floor mat supplier. (From an article in the Nikkan Jidosha Shimbun on Sep. 3 2009)

<2008>
-In November 2008, Martinrea International Inc. is supplying a new "capless" fuel filler system for the 2008 Ford "Flex", "Escape", "F150", "Expedition" and Lincoln "MKS" vehicles. The new system integrates a Mis-Fuel Inhibitor (MFI) and is compatible with new-type fuels such as biodiesel and ethanol. DuPont Zytel HTN PPA is incorporated in this capless fuel filler system. (From a press release on Nov.13, 2008)

-In October 2008, for the first time, DuPont Zytel Nylon is used for an oil pan module adopted for commercial production vehicles. Working in cooperation with Bruss and DuPont Automotive, Daimler has developed a modular design for its new diesel engines (OM651), which consists of a die-cast aluminum upper shell and a lower shell made of Zytel 70G35 HSLR. The new oil pan design will be first used in the Mercedes-Benz C Class. (From a press release on Oct 14, 2008)

-In May 2008, Daimler Trucks North America (DTNA) has approved DuPont CorMax VI and ElectroShield 21 cathodic epoxy electrodeposition primers for use on all DTNA truck bodies and parts. The Company has been awarded business as a Freightliner parts supplier. (From a press release on May 12, 2008)

-In Feb. 2008, the Company announced that its reinforced DuPont Zytel nylon resin has replaced steel in exhaust system parts on all Volkswagen vehicles built on the current "Golf" platform. The new Golf catalytic converter bracket was previously a complex metal/rubber part which required multiple assembly steps. The new component is a global first, as a metal to plastics transition had not been attempted for parts such as these, which must withstand dynamic forces, chemical exposure and high temperatures. In addition to the nearly 50 percent weight reduction, the new all-plastic design with Zytel; also makes possible more efficient, one-step assembly. (From a press release on Feb. 26, 2008)

Acquisition

-Effective July 1, 2005, DuPont-Dow Elastomers (DDE) becomes DuPont Performance Elastomers, a wholly-owned subsidiary of DuPont. In addition, DDE's "Engage" polyolefin elastomers, "Nordel" hydrocarbon rubber, and "Tyrin" products have moved to the Company as part of its Specialty Plastics and Elastomers business. (From a press release in July 2005)

Joint Venture

-In 2010, the Company and Honeywell announced a manufacturing joint venture to produce a new refrigerant for use in automotive air conditioning systems. The new refrigerant has 99.7 percent lower global warming potential (GWP) than the current refrigerant. Under the agreement, The Company and Honeywell will construct a manufacturing facility for the new refrigerant, HFO-1234yf. The product meets European Union regulatory requirements starting in 2011. The joint venture will begin supplying the refrigerant in the fourth quarter of 2011. (From a press release on May 20, 2010)

-In January 2006, the Company announced that the Company and Russkie Kraski Corp. have created a joint venture aimed at supplying automotive coatings to manufacturers of automobiles and commercial vehicles in Russia and former Soviet republics in Eastern Europe. The new company, DuPont Russian Coatings LLC, will draw on technologies licensed from both partners. Russkie Kraski is the Russian's largest manufacturer of automotive coatings and resins. (From a press release in January 2006)

R&D

R&D Expenditure

(in million dollars)
FY2011 FY2010 FY2009
Sales 1,956 1,651 1,378
As % of net sales 5% 5% 5%

R&D Facilities

<China>
-In December 2010, the Company announced a new R&D expansion in China to focus on next-generation material developments for photovoltaics, bio-based materials, and automotive applications. Opened in 2005, the DuPont China R&D Center is located in Zhangjiang Hi-Tech Park, Pudong, Shanghai. Today, the facility operates more than 30 labs with about 200 scientists and technicians, which will double in size creating about 200 additional science and technology jobs within the next two years. (From a press release on December 21, 2010)

<Korea>
-In June 2006, the Company announced the opening of the DuPont Korea Technology Center to support the research and development needs of fast-growing major industries in Asia, including electronics, automotive and construction. The DuPont Center is located on the campus of the Korean Institute of Science & Technology (KIST) in Seoul, Korea.The first area of focus for Center researchers will be basic research and applications development in the field of materials science for flat panel displays, with projects already in progress. 4HE new laboratory will facilitate a close collaboration with the Company's customers, as well as industries, universities, and government in Korea. (From a press release in June 2006)

Technological Alliance

-In May 2008, the Company and Genencor, a division of Danisco A/S, announced that they will form DuPont Danisco Cellulosic Ethanol LLC, a 50/50 global joint venture to develop and commercialize the leading, low-cost technology solution for the production of cellulosic ethanol to address a 75 billion dollars global market opportunity. (From a press release on May 15, 2008)

-In October 2007, DuPont Engineering Polymers announced an alliance with Canadian-based Morph Technologies Inc., Integran Technologies Inc. and US-based PowerMetal Technologies to develop and commercialize a nanocrystalline metal/polymer hybrid technology used to manufacture extremely lightweight components with the strength and stiffness of metal combined with the design flexibility and lightweight benefits of high-performance thermoplastics. (From a press release in October 2007)

-In April 2007, the Company and Honeywell of the US announced that they basically agreed on a joint development of next-generation refrigerants for car air conditioning with low GWP (global-warming potential). (From an article in the Nikkan Jidosha Shimbun in April 2007)

-In June 2006, the Company and U.K. Corporation BP announced that they formed a partnership for a joint development and production of next generation biofuels. Their first joint initiative will be an introduction of bio-butanol, a gasoline bio-component, to the UK market in 2007. (From a an article in the Nikkan Jidosha Shimbun in June 2006)

-In April 2005, the Company announced that it has signed a research agreement with the National Chemical Laboratory (NCL) in Pune, India. Under terms of the agreement, the Company will have access to the talents and capabilities of this laboratory to expand new technologies. (From a press release in April 2005)

Product Developments

Environmentally Responsive Materials for the Next-generation Vehicles
-In 2010, the Company will step up supply of its environmentally responsive materials for the next-generation vehicles including HVs. Full-swing launches of practical applications of the technologies developed at DuPont Automotive Center (DAC), opened in Nagoya at the end of 2005 exclusively for automotive R&D, are expected this year. The products include resins for electronics parts, interior-materials, and air-intake and fuel systems. The Company has received many orders because they have shown effects to reduce the environmental burdens, such as CO2 emission, over the production processes and while the vehicle is running. (From an article in the Nikkan Jidosha Shimbun on Jan. 28, 2010)

Advanced Magnet Wire Insulation Coil
-In 2010, the Company will step up its marketing activities to supply its advanced magnet wire insulation coil for use in hybrid and electric vehicle drive motors. the Company's copper wire device, which is coated with a thin teflon insulator film, is expected to contribute to making high-power yet smaller motors for next generation vehicles. Compared with conventional wire using glass fiber as an insulator material, the Company's new wire insulation offers increased wiring density by conforming tightly to shaped conductors. It also has improved bending property. In addition, the wire withstands high temperatures as high as 240 degrees Celsius, making it possible to be used in high-speed revolution motors achieving greater power. The advanced wire insulator is already used in motors of bullet trains. Maximizing its technical capabilities, the company aims to win business in the hybrid and electric vehicle market as well. (From an article in the Nikkan Jidosha Shimbun on Feb. 10, 2010)

Nylon Products
-In 2010, the Company released DuPont Zytel PLUS nylon, a new family of nylon products. The new technology offers improved durability and performance levels in harsh environments such as high temperature and exposure to chemical substances, while maintaining the design and processing ease provided by the company's existing nylon products. The Company intends to propose the new nylon to the automotive industry as a replacement for metal to cut down weight of auto parts and improve fuel economy. The new nylon is expected to be used in a variety of vehicle components such as exhaust mufflers, turbo air ducts, and cylinder head covers. The Company is planning to launch four types of DuPont Zytel PLUS nylon this year; they will be categorized according to weight and cost. (From an article in the Nikkan Jidosha Shimbun on Mar. 3, 2010)

-In October 2010, the Company announced that it has developed three types of nylon products, which contribute to more than doubling the product lifecycle of auto parts exposed to hot environments. With their ability to withstand an elevated temperature of up to 230 degrees Celsius, the nylon products can be used as replacements for metallic components of vehicle exhaust systems and EGR coolers. By underlining the weight saving feature and improved processability the nylon can offer, the Company aims to win new business. (From an article in the Nikkan Jidosha Shimbun on October. 29, 2010)

Automotive Interiors
-In 2010, the Company developed cultured marble products for automotive interiors. Up until now, cultured marble has not been used in automotive interior systems, because shaping of the material normally requires cutting processes, making mass production quite difficult. The Company, however, achieved a breakthrough by mass producing natural-marble-like interior products using injection forming technology, which made their applications in production vehicles possible. The new technology was developed at DuPont Automotive Center in Nagoya City, which the Company established for developing innovative new materials for automobiles and increasing proposals to automakers. The cultured marble parts are likely to be supplied to Japanese automakers, beginning next year. (From an article in the Nikkan Jidosha Shimbun on November. 16, 2010)

Next-generation Refrigerant

-The next-generation refrigerant jointly developed by E. I. du Pont de Nemours and Co. and Honeywell International Inc., HFO-1234yf, is expected to be utilized as early as 2011, while replacement for the refrigerant of car air-conditioners have been sought after to abate global warming, Although there were other replacement options including CO2, HFO-1234yf can be used in the existing car air-conditioning systems. It is, therefore, easy to replace the refrigerant of existing vehicles. Commercialization of HFO-1234yf has become realistic as automakers in Japan, the U.S. and Europe, excluding a few German manufacturers, have appreciated its high cooling effect and low fuel consumption. (From an article in the Nikkan Jidosha Shimbun on Jan. 10, 2009)

Vespel SP-2515 Polyimide
-In April 2009, the Company announced that it has developed and added to its portfolio the Vespel SP-2515 polyimide, which offers high thermal conductivity to improve dimensional control and a low coefficient of friction of seal rings and thrust washers. The company aims to expand sales of the new product by underlining features including reduced friction, weight and cost that are optimized for transmission application. The Vespel SP-2515 demonstrates a low coefficient of thermal expansion to better match aluminum and other metal materials, which help ensure stable seal performance. Additionally, parts made of the new plastic offer superior thermal conductivity, which is more than four times higher than those made of conventional type of plastic. The ability to remove heat from critical bearing surfaces leads to cooler running parts and higher pressure-velocity limits. (From an article in the Nikkan Jidosha Shimbun on Apr. 3, 2009)

New Functions of a Seat heater and a Seat Sensor
-In 2009, the Company is proposing a new technology to combine functions of a seat heater and a seat sensor by using a special polyimide film to reduce the number and weight of components. The film has a conductive surface and an insulating back surface. When an electric current is applied, the surface functions as a heated field. Temperature can be heightened more rapidly than by a nichrome wire used for the seat heater, and wire breaking can be better protected. The Company is intending to take advantage of such excellent characteristics of the film to win new orders. The product called "Kapton RS" is made of the polyimide material with conductive and insulated layers combined physically, giving the impression of adding heater function to the seat sensor film. The seat sensor is a crucial device for controlling high-function airbag systems. (From an article in the Nikkan Jidosha Shimbun on May 28, 2009)

Investment Activities

Investments Outside USA

<China>
-In June 2008, the Company announced the start of operation of its new paint production plant in Shanghai, China. With the opening of the facility having a 20,000-ton annual production capacity, the Company is now "better prepared to quickly respond" to the growing needs for automotive and industrial paints in the Asia Pacific region. It also intends to supply products to other regions from the new plant, which produces automotive paints for not only the after-market but also new and even large vehicles, as well as paints for industrial use. In the future, the Company will concentrate its production of water base paints and low solvent base paints in its US and European plants, and the new plant produces mainly solvent base paints. The new Chinese production facility, which now employs 160 workers, is planning to expand the workforce to approximately 250 by 2010 when it goes into full operation. (From an article in the Nikkan Jidosha Shimbun on Jun.10, 2008)

-In May 2006, the Company begun construction of a new world-class coatings plant in the Jiading district of Shanghai. When completed next year, it will serve a variety of automotive and industrial markets in China. Operations at the new plant are expected to begin in late 2007. The facility will employ approximately 250 people initially. (From a press release in May 2006)

<Korea>
-In August 2007, the Company of the U.S.A. announced that it has expanded its production capacity at its Ulsan Plant in South Korea, compounding facility of polyamide resins. Through a 20,000-ton-per-year expansion project for nylon 6 and nylon 66, the Korean plant is now capable of manufacturing the same amount of resins made at the group's facility in Japan, the company says without giving a concrete figure of the volume. The capacity expansion will enhance the Company's competitiveness to meet surging demand from the car industry in the Asia Pacific region. With extremely high strength, stiffness, and heat resistance, mineral/glass reinforced nylon resins made at the Ulsan Plant are used in car engine related components such as intake manifolds and cylinder head covers, as well as various electronics and electric products. With the increased capacity, the Company aims to enhance support to automotive and electronics business in Korea, the major industries of the country, while strengthening its global ties with its customers that have operations in the country. (From an article in the Nikkan Jidosha Shimbun in Aug., 2007)

<UK>
-In July 2007, the Company announced a plan to invest 58 million dollars, or approximately 7 billion yen, to construct two biofuel production facilities. The company plans to construct a biobutanol demonstration facility with BP p.l.c.-the first of its kind in the world-and a 420 million liter ethanol production facility with BP and British Sugar.p.l.c. Both facilities will be located at BP's existing operations in the central part of the UK. The demonstration facility is expected to start up in early 2009 and the production facility to come on line in late 2009. The Company and BP, which target to open up new markets by the end of 2007, will begin supply of biobutanol in the U.K, conduct testing on manufacturing infrastructure and further advance the vehicle testing on the next-generation biofuel. (From an article in the Nikkan Jidosha Shimbun in July 2007)

<Russia>
-In June 2007, as a part of its continued growth strategy in emerging markets, the Company announced the opening of its second office in Russia. The Saint Petersburg office will focus specifically on strengthening the company's relationships with and support for the automotive industry. The opening follows significant expansions of the company's offices in Moscow and Kiev in the Ukraine, and the launch of an office in Almaty, Kazakhstan. The company's offerings for the automotive industry include more than 100 products, with 30- 40 percent being applicable to cars manufactured in Russia. (From a press release in June 2007)

<Japan>
-In November 2005, the Company opened a 10 million dollars laboratory in Aichi Prefecture, Japan, to facilitate technical services and approvals for automotive coatings used by Japanese auto manufacturers worldwide, and to support their home country assembly operations. The facility will employ approximately 30 scientists and be managed by the Company and DuPont Shinto Automotive Systems, a joint venture between the Company and Shinto Paint Company. (From a press release in November 2005)

Investment in USA

-In September 2007, the Company announced production expansion plans for its high performance Kevlar para-aramid brand fiber. The company will invest 500 million dollars in its plant in Virginia to increase its production capacity by more than 25% by 2010. The applications of the light but strong material Kevlar are recently expanding in various areas including the automotive sector. The supply capacity expansion will allow the company to win new orders. For over 40 years, DuPont Kevlar has been used as one of the reinforcement materials for automotive brakes and tires. It also has been recognized as materials for body armor and protective apparel or aerospace and airplane components. (From an article in the Nikkan Jidosha Shnbun in Sept., 2007)

-In June 2005, the Company announced its "Vespel" business unit is expanding its polyimide resin production facility in Circleville, Ohio. The expansion will provide material required for production of direct-formed "Vespel" SP-1 and SP-21 polyimide parts. This additional facility will provide a 50 percent increase in capacity upon its projected startup in October. "Vespel" parts deliver outstanding performance in high-temperature, low-wear and low-friction components such as bushings, seal rings or thrust washers for automotive, aerospace, semiconductor, and various other end-use industries. (From a press release in June 2005)