Cytec selects site for carbon fiber expansion project

Cytec Industries Inc. has completed the site selection for a carbon fiber expansion project announced last year, with Greenville, S.C., chosen as the location of the company's proposed new facility. Employing capital best practices, the project is in the assessment and engineering definition phase. Pending final approval, construction is expected to begin in 2008 with plant start-up scheduled for early 2010. The expansion would double Cytec's carbon fiber manufacturing capacity and provide additional capability to meet the demand for next-generation carbon fibers.

Cytec's capital investment in the expansion, projected at approximately $150 million, is in addition to a modernization and recommissioning effort completed last year at the company's existing carbon fiber manufacturing site in Greenville, which increased Cytec's annual carbon fiber production capacity by 33 percent and added 60 new jobs. Cytec expects to add approximately 225 additional skilled and professional jobs when the expansion project is fully operational. Today, Cytec employs nearly 290 at its carbon fiber plants in Greenville and Rock Hill, S.C.

"We're committed to meeting the increasing needs of our customers for carbon fiber-based materials," said Cytec executive vice president and chief financial officer James P. Cronin, who led the site selection team. "We expect to benefit from this strategic investment by focusing a large part of our additional carbon fiber capacity on Cytec Engineered Materials' advanced composites product line, which is experiencing significant growth as aerospace composites use escalates."

"Today's announcement is another positive sign that our efforts to improve the state's business climate are paying dividends," said Governor Mark Sanford. "Cytec is an innovative world leader and this expansion enhances our state's ability to compete in the global economy for new high-tech, high-wage jobs. As well, given Cytec's involvement in the aerospace industry, this announcement certainly has potential in terms of future job creation, investment and growth opportunities for many years to come."

When the planned new facility goes online in 2010, it will manufacture high volumes of Cytec carbon fibers such as THORNEL T300, T650 and T40/800, which are used by a variety of commercial aerospace and military customers, as well as new fibers currently under development.

"The proposed facility will be built adjacent to Cytec's existing Greenville carbon fiber plant and will leverage the surrounding developed land, rail access and some of the current infrastructure," said Cytec Engineered Materials president Steve Speak. "And when you factor in the pool of highly-skilled talent already available and the in-depth training that the South Carolina Technical College System can provide, South Carolina's value proposition is clear and compelling."

Speak added, "Cytec's history in Greenville County – combined with the unflagging support and enthusiasm of the local, county, state and federal organizations involved in this project – significantly influenced our decision to invest here. South Carolina is positioned for growth and we're excited to be part of that progress through the construction of a state-of-the-art manufacturing facility."

About Carbon Fiber
Carbon fibers act as a reinforcement material in advanced composites used by aerospace and high-performance manufacturers and offer advantages such as light weight, high tensile strength, durability and resistance to corrosion and high temperatures. More than 65 percent of Cytec's carbon fiber production is earmarked for internal use by Cytec Engineered Materials in the manufacture of advanced composites, with the balance being sold to third-party materials manufacturers focused on the aerospace industry.