Aug 25 2010
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 that it has initiated a project assessment, which includes site-selection activities, to identify options for building a new, hydrogenated styrenic block copolymer (HSBC) plant in Asia.
Strong growth in Kraton's differentiated grades of HSBC's has created the need for additional manufacturing capacity in the region. The site-selection team is expected to make a recommendation by December 2010, followed by a detailed cost-assessment by early 2011. Kraton anticipates seeking final Board of Directors' approval soon thereafter, whereupon construction of the plant would likely commence in the first half of 2012, with start-up occurring as early as the second half of 2013.
The proposed 30 Kta HSBC manufacturing facility would employ Kraton's latest state-of-the-art technology for producing HSBC's, and should set a new global standard for manufacturing costs and product quality.
"Kraton has built a strong presence in Asia, and such an investment would represent the next step to grow our position in the region—committing the necessary resources, technology and capital," said Kevin M. Fogarty, President and Chief Executive Officer. "The growth in application and technology development, using Kraton's styrenic block copolymers in Asia, continues to accelerate. This new plant should help facilitate this additional growth, demonstrating further our commitment to the region," he said.
Additionally, Kraton has recently relocated its Shanghai, China office to a new facility, double the size of the previous location, to better accommodate on-going increase in staff capability, which has more than doubled in China since 2006.
"This new office facility includes a multi-functional customer service center and a dedicated training facility," added David A. Bradley, Kraton's Chief Operating Officer. "When combined with our expanded warehouse capacity in Shanghai Waigaoqiao Free Trade Zone and our recent investments to enhance product packaging in China, we believe customers in the region will benefit from Kraton's commitment to further enhancing our service capability," he concluded.