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With Their First Commercial Plant Nearing Completion, Cyclics go in Search of a Location for a Second Plant

The Cyclics Corporation announced the initiation of a formal search to site a second, world scale plant for the production of CBT® resin. Although the search currently is focused primarily in North America and Europe, other regions will also be considered. Proximity to raw materials, low raw material and energy costs, availability of skilled labor, good transportation routes and attractive financial incentives are among the key criteria Cyclics is evaluating for siting the second plant. Davy Process Engineering (www.davyprotech.com), the engineering firm that led the design and construction of Cyclics’ first plant, in Schwarzheide, Germany, will assist in the site qualification process.

The announcement comes as Cyclics nears completion of its first commercial plant, with a capacity of 2500 metric tonnes (5.5 million pounds). Located in Schwarzheide, Germany, the plant is scheduled to be producing commercial products in the first quarter of 2005. Greater than 50% of the initial nameplate capacity is under contract and a strong pipeline of development projects has led Cyclics to take steps to double the capacity to 5000 metric tonnes (10 million pounds) at the Schwarzheide plant late in 2005.

“The tremendous growth in demand we are seeing for our products has given us the confidence to launch this search,” said Ted Eveleth, CEO of Cyclics Corporation. “We are experiencing very encouraging developments in high-volume applications.”

“It is exciting to see the Schwarzheide plant nearing completion,” said Dr. Gary Faler, Chief Technology Officer of Cyclics Corporation, “Our enthusiasm is shared by our customers who have played an invaluable role in helping us develop our first commercial products, our financial backers who have financed the plant and all of our employees in both North America and Europe.”

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