Kraton Polymers LLC (Kraton), a leading global producer of engineered polymers, will suspend certain production of styrenic block copolymers (SBCs) at a number of its global production facilities. The suspension of production will affect approximately 50 percent 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 destocking 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 U.S. and Europe, and have already been taken off line, or about to be taken off line over the next several days.
Kraton is a leading global producer of engineered polymers and, we believe, the world's largest producer of styrenic block copolymers (SBCs), a family of products whose chemistry was pioneered by us over forty years ago. SBCs 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. Kraton polymers are used in a wide range of applications, including adhesives, coatings, consumer and personal care products, sealants, lubricants, medical, packaging, automotive, paving, roofing, and footwear products. Kraton has the leading position in nearly all of its core markets and is the only producer of SBCs with global manufacturing capability. Its production facilities are located in the United States, Germany, France, The Netherlands, Brazil and Japan.
