Kraton Performance Polymers Brings Poly-Isoprene Rubber Manufacturing to the U.S.

HOUSTON, Apr 26, 2010 (BUSINESS WIRE) --Kraton Performance Polymers, Inc. (NYSE: "KRA"), a leading global producer of styrenic block copolymers or "SBC's" (together with Kraton Polymers LLC and its other subsidiaries "Kraton"), announced plans to invest approximately $27 million in its Belpre, Ohio plant to enable production of Poly-Isoprene Rubber. This strategic decision will allow Kraton to manufacture this product in the U.S. to support increased customer demand and the projected long-term needs of the market.


The demand and popularity of Poly-Isoprene Rubber (PIR) products has grown significantly, especially in the medical industry, due to its ability to provide comfort and alternatives to natural rubber latex (NRL) products (which are often made with silicone or PVC-based devices). PIR is often substituted for NRL because it does not have natural impurities that can cause allergic reactions. Specific medical applications that benefit from the superior performance of Kraton Poly-Isoprene Rubber include catheters, surgical gloves, medical stoppers, medical tube connectors, dental dams, physiotherapy bands and personal care products.


"We are pleased to bring Poly-Isoprene Rubber manufacturing to our Belpre facility and believe that this location offers the best synergies between PIR and other existing SBC operations. It will allow Kraton to operate PIR production assets that are competitive and sustainable," said David Bradley, Chief Operating Officer. "Plant modifications and upgrades are scheduled to commence around the third quarter 2010 with the new PIR production capabilities expected by mid-2011."


"It is important to note," stated Bradley, "that Kraton has adequate PIR inventories on hand to satisfy its estimated customer demand throughout the scheduled Belpre modification phase. Customers, especially those in the medical segment, should be reassured that we foresee no interruption of supply as Kraton makes these capital improvements." Bradley added that "the U.S. location will, in fact, be better-suited to serve a region that increasingly seeks high quality alternatives to natural rubber for medical applications. The Belpre, Ohio plant should also offer a more reliable environment for future production of PIR to further serve existing and new customers. This investment further demonstrates our commitment to the industry." In December 2009, Kraton ceased production at its Pernis, the Netherlands PIR plant as part of the production relocation process.


For more information about Poly-Isoprene Rubber, please contact Philippe Henderson at philippe.henderson@kraton.com, visit our website at www.Kraton.com, or e-mail info@Kraton.com.


About Kraton


Kraton Performance Polymers, Inc., through its operating subsidiary Kraton Polymers LLC and its subsidiaries, is a leading global producer of engineered polymers and, we believe, the world's largest producer of styrenic block copolymers ("SBC's"), a family of products whose chemistry was pioneered by us almost fifty years ago. SBC's are highly-engineered thermoplastic elastomers which enhance the performance of numerous products by delivering a variety of attributes, including greater flexibility, resilience, strength, durability and processability. Our polymers are used in a wide range of applications, including adhesives, coatings, consumer and personal care products, sealants and lubricants, and medical, packaging, automotive, paving, roofing and footwear products. We currently offer approximately 800 products to more than 700 customers in over 60 countries worldwide, and are the only SBC producer with manufacturing and service capabilities on four continents. We manufacture products at five plants globally, including our flagship plant in Belpre, Ohio, as well as plants in Germany, France and Brazil, and a joint venture plant operated in Japan.


Kraton, the Kraton logo and design, and the "Giving Innovators their Edge" tagline are all trademarks of Kraton Polymers LLC.


Forward Looking Statements


This press release includes "forward-looking statements," which are statements other than statements of historical fact and are often characterized by the use of words such as "believes," "expects," "estimates," "projects," "may," "will," "intends," "plans" or "anticipates," or by discussions of strategy, plans or intentions. All forward-looking statements in this press release are made based on management's current expectations and estimates, which involve risks, uncertainties and other factors that could cause results to differ materially from those expressed in forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements. We assume no obligation to update such information.

 

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