While all Performance Standards are applicable to this investment, IFC’s environmental and social due diligence indicates that the investment will have impacts which must be managed in a manner consistent with the following Performance Standards: PS1: Social and Environmental Assessment and Management Systems PS2: Labor and Working Conditions PS3: Pollution Prevention and Abatement PS4: Community Health, Safety and Security Other PS may become applicable in the future should any new IFC investment in this project have impacts beyond the ones hereby identified. Environmental, Health & Safety (EHS)

This is a category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental and social impacts may result that can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria as is described in the following sections.

SOCIAL AND ENVIRONMENTAL ASSESSMENT AND MANAGEMENT SYSTEMS Environmental and Social Assessment. Kordsa Argentina is the result of the acquisition of a textile operation owned by Du Pont in the same site. Currently the Company shares the industrial site with DuPont industrial operations and Invista, another textile company, which also provides certain utility services to Kordsa. At the time of acquisition in 2000 the operations were compliant with GoA environmental and social assessment requirements. As no expansions took place at the time or since then, no additional E&S assessment was necessary beyond IFC’s due diligence. Management Systems. Kordsa Global has a number of management systems certifications in various operations worldwide. Kordsa Argentina has a quality management system certified under the ISO 9001 standard and an integrated environment-cum-health and safety management system, consistent with, although not certified under ISO14001 and OHSAS 18001 standards. In addition, Kordsa Argentina has a number of continuous improvement systems in place including 6-SIGMA and 5-Ss. EHS Organization and Capacity. Kordsa Argentina has capable dedicated EHS staff. Following the re-structuring, the organization chart shows the Safety, Health and Environment (SHE) and Systems Development Manager reporting directly to the Manufacturing Director. His responsibilities include: environment, occupational safety, emergency preparedness and response, and management systems. Labor issues, occupational health, security and community relations are managed by the Human Resources Manager.. Training. The Company provides regular training to employees in a number of areas according to their roles and responsibilities. Training areas include: quality; safety, health and environment (SHE); manufacturing practices; human resources; and career development. Community Engagement. Kordsa Argentina operations are located in Berazategui, Buenos Aires Province. The Company is an active participant in community engagement that includes environmental awareness building, ad-hoc social development support and voluntary work for the enhancement of local schools. LABOR AND WORKING CONDITIONS Human Resources Policy and Management. The Company has a workforce of 270 including employees, contractors and temporary workers, who are contracted for specific activities. There are also a number of 3rd party contractors in the premises working in the canteen, doing gardening and cleaning. Female employees comprise 7% of the workforce. The Company complies with local requirements regarding labor laws. The Company has a human resources policy that includes non-discrimination, equal opportunity, workers’ organization and collective bargaining, and grievance mechanisms. The Company communicates the Policy to its employees at inception and keeps it available to all employees. During induction all employees receive a handbook that contains (i) the Company’s organization and contact details for HR issues, (ii) Salary and Benefits, (iii) Human Resources Procedures, which fulfill IFC’s labor and working conditions requirements including hiring procedures, disciplinary practices and grievance mechanisms, (iv) Occupational Health and Safety, and (v) Workers’ Voluntary Social Services. Worker’s Organizations. The Company has agreement with local unions in its operations at Berazategui; the company does not impose restriction for the participation in worker’s organizations and has a collective bargaining agreement, whose conditions and benefits apply to all workers. There are two unions in the Company’s operations AOTRA (Asociación Obrera Textil de la República Argentina) for blue-collar workers, and SETIA (Sindicato de Empleados Textiles de la Industria y Afines) for clerical staff. No recent workers’ actions or strikes have taken place. Retrenchment. Kordsa Argentina currently has three operational sections: spinning, utilities, and the tire cord fabric stage (“TCF) which includes twisting, weaving and dipping. The Company is currently restructuring its production to focus on yarn manufacturing only and the TCF section should close by end of February 2011. This produced the retrenchment of 205 people, leaving a final workforce of 239 to man the spinning plant and ancillary facilities. The company developed a series of voluntary agreements for the retrenchment of employees and contractors. The voluntary agreements ensured a smooth transition without conflict and secured the necessary personnel for the continuing operation of the remaining facilities. There is a grievance mechanism in place to respond and resolve any concerns of the workers, which the Company is committed to track and address as appropriate. Protecting the Work Force. As required by law, the Company does not hire employees under 18 years old. Salaries and benefits are in line with market conditions. Employees are provided with medical insurance and transportation. Occupational Health and Safety. The Company has a SHE management system that comprises programs and procedures to develop and maintain the high level of health and safety required by the Argentinean legislation. The company has a SHE manager reporting to the Operations Director and several safety officers at the Berezategui site. All employees receive a thorough initial SHE training and regular reinforcement by supervisors and fellow workers. Kordsa undertakes regular reviews of its occupational risks and prepares an action plan to manage them. According to plan, OHS issues associated with Kordsa’s operations are handled promptly and systematically. Kordsa’s spinning plant has had no lost-time accidents for nearly 5 years. POLLUTION PREVENTION AND ABATEMENT Pollution Prevention, Resource Conservation and Energy Efficiency. Kordsa Argentina is compliant with Argentine environmental requirements and has all the corresponding permits and licenses. The Company regularly monitors its environmental performance and keeps it within the standards of IFC and Argentine authorities. The industrial process at Kordsa Argentina involves the following operations: drying of nylon chips, spinning/drawing, converting (twisting and weaving), and, dipping to produce rubber coated fabric for the tire industry. Electricity is used mainly in the drying and converting operations, and for air conditioning and lighting; the use of steam is focused in the drying and spinning areas; gas is used to fuel the ovens in the dipping area. The Company promotes resource conservation and energy efficiency and has implemented a number of initiatives, involving the re-distribution of sites and closure of underused areas, which have significantly reduced energy consumption in terms of electricity, gas and steam. Air Emissions. Given that no polymerization takes place at the Company plant, air emissions are mainly from the dipping area, and include the exhaust from the gas ovens and from the dipping materials such as ammonia, volatile organic compounds, nitrogen oxides and formaldehyde. As the TCF unit will be closed by the end of February of 2011, the corresponding emissions will be eliminated. The spinning plant produces no significant air emissions. The total production of GHG at the Company plant in Berazategui is equivalent to around 22,000 tonnes of CO2/yr. Liquid Effluents. Excess cooling water is mixed with domestic wastewater and disposed of in the municipal sewer as permitted. Berazategui is currently building a municipal wastewater treatment plant according to international good practice. Waste. The Company has an elaborate system for separation and recycling which minimizes the disposal of unrecoverable waste. The company recycles a number of wastes including cardboard, paper, plastic, metal, and wood. All final waste is collected under contract with a private company and disposed of according to the characteristic of the waste: in the municipal sanitary land fill or in dedicated disposal sites for hazardous materials. Hazardous Materials. Various plant sections, particularly drying, spinning and dipping, use materials that are considered hazardous because of toxicity, corrosiveness or flammability. The Company takes all the necessary precautions for the proper handling of hazardous materials including Material Safety Data Sheets (MSDS) in Spanish, labeling, personal protective equipment, spill containment, and fire prevention equipment. COMMUNITY HEALTH, SAFETY AND SECURITY Community Health, Safety and Security. The Company’s operations are located within the industrial complex at Berazategui and with limited contact with communities. The Company’s community engagement involves voluntary social services undertaken by employees within the framework of Kordsa’s initiatives. Emergency Preparedness and Response The company has community health and safety procedures consistent with IFC requirements, including life and fire safety, and emergency preparedness and response procedures. Emergency procedures in the Company are robust and operate in coordination with health, fire and rescue emergency systems of in the industrial complex and the municipality of Berazategui. Security Personnel Requirements The company hires the services of a security company that work in accordance to procedures consistent with the Voluntary Principles on Security and Human Rights (VPSHR, commonly referred to as the VPs), which require that personnel be properly trained to deal with security issues with due consideration to the rights of Company employees, visitors and the community.

Kordsa is located in Berazategui, an area of Buenos Aires currently surrounded by suburban developments. Interaction with the community focuses on support to local institutions such as the fire department, schools and other needy institutions. The company also has a number of social development activities aimed at the development of personnel and support to the workers’ families.

KORDSA ARGENTINA S.A. Calle 144 No. 512 Berazategui (1884) Buenos Aires Argentina Tel. +54 11 4229 3224