NetworksNetworksGlobal UnionGlobal Union NetworkNetwork

Brussels, 22-23 March 2006

NetworksNetworksContentsContents

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1. Main Developments In the Chemical Industry

2. Economic Situation of DuPont

3. Industrial Relations

4. Products & Problems

NetworksNetworks1. Main Developments in the Chemical Industry1. Main Developments in the Chemical Industry

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Global sales in the chemical sector by regions - 2004 (in billion US $)

$516

$36 $19$120

$748

$81 $89

$637

0100200

300400500600

700800

US

A

Ca

na

da

Me

xic

o

La

tin

Am

eri

ca

We

ste

rnE

uro

pe

Ce

ntr

al/

Ea

ste

rnE

uro

pe

Afr

ica

& M

idd

leE

as

t

As

ia/P

ac

ific

NetworksNetworksSales 2004 for Asia only (in billion €)Sales 2004 for Asia only (in billion €)

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137 €

186 €

183 €

ChinaJapanRest of Asia

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NetworksNetworksChemical industry in the USA (2004)Chemical industry in the USA (2004)

The US chemical industry is responsible for almost a quarter of total world sales in the chemical sector (2,245 bn $)

881, 757 people are employed in the chemical industry in the US (representing 6.2% of all manufacturing jobs)

The average salary in the chemical sector in the United States is US$ 68,174 (42 % above average in comparison with the overal average for the manufacturing industry and 73,3%

higher than the average for all industries)

The average hourly salary in the US chemical sector is US$ 19.17 (19% above average in comparison with the

manufacturing sector)

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NetworksNetworks2. 2. Economic Situation Of DuPont

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2005 2004 2003 2002 2001 2000

Net Sales

(in bn $)26.639 27.340 26.996 24.006 24.726 28.268

Net Income

(in bn $)2.053 1.78 1.002 (1.103) 4.339 2.314

Earnings

Per Share (in $)2.08 1.77 0.96 (1.11) 4.16 2.19

Dividends Per Share (in $)

1.46 1.4 1.4 1.4 1.4 1.4

Employees 60,000 60,000 81,000 79,000 79,000 93,000

NetworksNetworksDuPont employees per region (2004)DuPont employees per region (2004)

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Region Employees %

USA 34,362 57,5

Europe 14,786 24,7

Asia-Pacific 4,732 7,9

Latin America 4,741 7,9

Canada 1,165 2,0

TOTAL 59,786 100

NetworksNetworksDuPont Segment Sales (2004)DuPont Segment Sales (2004)

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Sales (in m $) %

Agriculture & Nutrition 6,247 22.8

Coatings & Color Technologies

6,028 22.0

Electronic & Communication Technologies

3,279 12.0

Performance Materials 6,633 24.3

Safety & Protection 4,693 17.2

Textiles & Interiors1 3,250 11.9

1 sold to Koch Industries on 30 April 2004

NetworksNetworksSales per Region (2004)Sales per Region (2004)

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0%

10%

20%

30%

40%

50%

60%

NorthAmerica

Europe Asia-Pacific

LatinAmerica

Agriculture & Nutrition

NetworksNetworksSales per Region (2004)Sales per Region (2004)

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0%

5%

10%

15%

20%25%

30%

35%

40%

45%

NorthAmerica

Europe Asia-Pacific

LatinAmerica

Coatings & Color Technologies

NetworksNetworksSales per Region (2004)Sales per Region (2004)

10

0%

5%

10%

15%

20%

25%

30%

35%

40%

NorthAmerica

AsiaPacific

Europe SouthAmerica

Electronic & Communication Technologies

Sales per Region (2004)Sales per Region (2004)

0%5%

10%

15%

20%

25%30%

35%

40%

45%

NorthAmerica

AsiaPacific

Europe SouthAmerica 11

Performance Materials

Sales per Region (2004)Sales per Region (2004)

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0%

10%

20%

30%

40%

50%

60%

70%

NorthAmerica

AsiaPacific

Europe SouthAmerica

Safety & Protection

3. Industrial Relations

In the US

Get an impression at http://www.dupontcouncil.org

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• Not negotiating with trade unions

• Fighting against trade unions

• Active in „union-busting“

• Trying to organise decertification votes

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in the EU • DuPont has a „European Communication Network“

• DuPont, contrary to other MNEs in the sector, supports the use of collective agreements at branch levels in The Netherlands

• DuPont is famous for its health and safety programme.

4. Products & Problems

• PFOA

• Chloroprene (Neoprene®)

• Coatings

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Perfluorooctanoic acid / PFOA

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• PFOA is a „likely“ cause of cancer according to the EPA (Environmental Protection Agency) scientific advisory board.

• Companies in the US have to eliminate the presence of PFOA by 2015 – DuPont already agreed to this.

• DuPont paid $107m to settle a class-action lawsuit from residents of Parkersburg, WV, in 2004 (an additional $235m fine might still need to be paid, pending the result of a study)

• DuPont agreed to pay a penalty of $16.5m to the EPA

• DuPont will invest $20m at its Pascagoula plant to eliminate emission of PFOA

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Chloroprene

•DuPont Performance Elastomers (DPE) paid a $84m fine for price fixing in the US.

•DPE announced to close its Louisville, Kentucky, plant in March 2007 / about 250 workers will be losing their jobs.

•Shortage of chloroprene in the US states of New England because of the closure of a Polimeri plant in France, the damages of the DPE plant in Pontchartrain, Louisiana and the anti-dumping duties on Japanese chloroprene.

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Coatings

DuPont announced to cut 1,500 jobs in the coating and colour technologies divison (16 March 2006)

4 plants in Europe:

• Rubi (Spain)

• Polinya (Spain)

• Breda (NL)

• Helmstedt (Germany)

Plus an additional 250 employees in Wuppertal, Germany

Chad Holliday, CEO of DuPont calls it a „transformation plan“

A clear strategy is missing.