Consumables

Kraton Polymers Suspends Production of SBCs at Key Manufacturing Plants

Friday 26. December 2008 - Kraton Polymers LLC (Kraton), a leading global producer of engineered polymers, will be suspending certainproduction of styrenic block co polymers (SBCs) at a number of its global production facilities.

The suspension of production will affect approximately 50% of Kraton’s global capacity. “Given the rapid and unprecedented deflation in prices for petrochemical based feed stocks, the impact of such deflation on our current inventory values, and a general de-stocking occurring in most of the down-stream value chains we serve, we have decided to take these actions to diligently manage our cash flow,” said David Bradley, Kraton’s Chief Operating Officer. “We are working with our customers to better understand their needs for the next several months to limit service interruptions. We plan to keep affected capacity idle until we see a more normalized order pattern from our customers, expected early in the new year.” Kraton is currently evaluating the effect, if any, of this decision on its 2008 consolidated financial statements.

The plants concerned are in the USA and Europe, and have already been taken off line, or about to be taken off line over next several days.