Woodland Park, New Jersey, June 5, 2012 - Cytec Industries Inc.'s (NYSE:CYT) Board of Directors has approved restart of a carbon fiber manufacturing expansion project at the company's Piedmont, South Carolina facility as well as commencement of a prepreg manufacturing expansion project at the company's site in Greenville, Texas. Both projects support growing demand for Cytec's composite materials in the aerospace industry.
The project in South Carolina will provide additional capacity for manufacture of our polyacrylonitrile-based (PAN-based) carbon fiber production including precursor manufacturing and carbonization. Cytec uses these fibers in the manufacture of carbon fiber reinforced composite prepregs which are widely used in both commercial and military aerospace applications. Construction is expected to be completed by the end of 2013 with industrial fiber production expected in 2015 and aerospace qualified fiber production expected in 2016.
The Greenville, Texas project includes a building expansion and associated infrastructure to support a new impregnation line which will increase the site's prepreg capacity by 20%. Commercial production in the new facility is expected to begin in 2015. David Snyder, Vice President of Operations for Engineered Materials, added, "We are excited about the growth of our production capabilities in Greenville and Piedmont and what it means for both our customers and the communities in which our facilities operate. We look forward to continuing our strong relationships and to continued growth and success of our operations at both sites."
In addition to the above expansions, Cytec's Michigan site is increasing its KM polymer capacity, an important raw material used in the production of certain prepregs. The first phase of this project is expected to be completed by the end of 2012 and will increase capacity by 25%. A second phase of expansion is also planned which will double the capacity for this material by early 2014.
The combined expansions will provide capacity for growing demand from the Joint Strike Fighter, new Boeing progams such as 787 and 747-8, new Bombardier programs, and general build rate increases in Cytec's legacy civil transport, business jet, and helicopter businesses. "Aerospace manufacturers are increasingly turning to composite materials to reduce aircraft weight and improve fuel efficiency. Our investments in carbon fiber and prepreg show our commitment to supporting the industry growth by optimizing supply capability for our customers," said Bill Wood, President, Engineered Materials.
Forward-Looking and Cautionary Statements
Except for the historical information and discussions contained herein, statements contained in this release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Achieving the results described in these statements involves a number of risks, uncertainties and other factors that could cause actual results to differ materially, as discussed in Cytec's filings with the Securities and Exchange Commission.
Cytec's vision is to deliver specialty chemical and material technologies beyond our customers' imagination. Our focus on innovation, advanced technology and application expertise enables us to develop, manufacture and sell products that change the way our customers do business. These pioneering products perform specific and important functions for our customers, enabling them to offer innovative solutions to the industries that they serve. Our products serve a diverse range of end markets including aerospace composites, structural adhesives, automotive and industrial coatings, electronics, inks, mining and plastics.
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Source: Cytec Industries Inc via Thomson Reuters ONE