Profile: PolyOne Corporation (POL.N)

PolyOne Corporation is a provider of specialized polymer materials, services and solutions with operations in thermoplastic compounds, specialty polymer formulations, color and additive systems, thermoplastic resin distribution and specialty polyvinyl chloride (PVC) resins, with equity investments in manufacturers of caustic soda and chlorine, and PVC compound products and in a formulator of polyurethane compounds. It offers more than 35,000 polymer solutions to approximately 10,000 customers worldwide. It operates in six segments: International Color and Engineered Materials; Specialty Engineered Materials; Specialty Color, Additives and Inks; Performance Products and Solutions; PolyOne Distribution, and Resin and Intermediates. On January 2, 2008, the Company acquired GLS Corporation (GLS), provider of specialty thermoplastic elastomer (TPE) compounds for consumer, packaging and medical applications.

International Color and Engineered Materials

The Company operates 12 facilities in Europe (Belgium, France, Germany, Hungary, Poland, Spain, Sweden and Turkey) and six facilities in Asia (China, Singapore and Thailand). It works in conjunction with its Specialty Color, Additives and Inks and Specialty Engineered Materials operating segments.

Specialty Engineered Materials

The Specialty Engineered Materials operating segment is a provider of custom plastic compounding services and solutions for processors of thermoplastic materials across a range of markets and end-use applications, including applications employing traditional materials, such as metal. This segment also includes the business of GLS.

Specialty Color, Additives and Inks

The Specialty Color, Additives and Inks operating segment is a provider of specialized color and additive concentrates, as well as inks and latexes. Its colorant and additives masterbatches are used in plastics manufacturing processes, including injection molding, extrusion, sheet, film, rotational molding and blow molding throughout the plastics industry, particularly in the packaging, transportation, consumer, outdoor decking, pipe and wire, and cable markets. It also incorporated into such end-use products as stadium seating, toys, housewares, vinyl siding, pipe, food packaging and medical packaging. This segment also provides liquid systems, including vinyl, natural rubber and latex, polyurethane and silicone. Products include fabric screen-printing inks and latexes for diversified markets that range from recreational and athletic apparel, construction and filtration to outdoor furniture, and healthcare. In addition, the Company has 50% interest in BayOne Urethane Systems, L.L.C. (BayOne), a joint venture between PolyOne and Bayer Corporation, which sells liquid polyurethane systems into many of the same markets.

Performance Products and Solutions

The Performance Products and Solutions operating segment offers variety of products and services for vinyl coating, molding and extrusion processors. Its product offerings include: rigid, flexible and dry blend vinyl compounds; blending and specialty suspension grade vinyl resins, and specialty coating materials based largely on vinyl. These products are sold to a variety of manufacturers of plastic parts and consumer-oriented products. It also offers a range of services to the customer base utilizing these products. These services include materials testing and component analysis, custom compound development, colorant and additive services, design assistance, structural analyses, process simulations and extruder screw design. Vinyl is a plastic, utilizing a range of applications in building and construction, wire and cable, consumer and recreation markets, transportation, packaging and healthcare. This operating segment also includes producer services, which offers compounding services to resin producers and processors that design and develop their own compound and masterbatch recipes.

PolyOne Distribution

The Company’s PolyOne Distribution operating segment distributes more than 3,500 grades of engineering and commodity grade resins, including PolyOne-produced compounds, to the North American market. These products are sold to approximately 5,000 custom injection molders and extruders who, in turn, convert them into plastic parts that are sold to end users in a range of industries.

Resin and Intermediates

This segment consists almost entirely of the Company’s 50% equity interest in SunBelt Chlor-Alkali Partnership (SunBelt) and its former 24% equity interest in OxyVinyls, through its disposition date of July 6, 2007. SunBelt, a producer of chlorine and caustic soda, is a partnership with Olin Corporation. OxyVinyls, a producer of PVC resins, vinyl chloride monomer (VCM), and chlorine and caustic soda, was a partnership with Occidental Chemical Corporation. During the year ended December 31, 2008, SunBelt had production capacity of approximately 320 thousand tons of chlorine and 358 thousand tons of caustic soda. Most of the chlorine manufactured by OxyVinyls and SunBelt is consumed by OxyVinyls to produce PVC resin. Caustic soda is sold on the merchant market to customers in the pulp and paper, chemical, construction and consumer products industries.