Press Release

Kraton Polymers Announces
Latin America Capacity Expansion

HOUSTON (August 11, 2003) – Kraton Polymers, the world’s leading manufacturer and supplier of styrenic block copolymer (SBC) technology, is expanding capacity of Kraton D polymers at its Paulinia, Brazil, plant. The increase in production capability is in response to increasing demand from the adhesives, compounding, footwear and asphalt industries in the Latin American, U.S. and European markets.

“The completion of this expansion, scheduled for the end of 2004, will increase capacity by 25 percent in Latin America,” said Garret Davies, vice president of the Americas for Kraton Polymers. “This expansion reinforces our commitment to bring innovative, high-performance products to market quickly to maintain supply and meet customer needs on a global scale.”

The expansion at Paulinia will be achieved through a series of debottlenecks in selected units of the plant. The first phase will begin with installation of a natural gas powered boiler which will increase steam generation at the plant. The new boiler is expected to be online by the end of 2003. Detailed engineering began in Q2 2003.

Other plant modifications required to make room for the expansion have been started as separate projects and will be integrated to achieve the expansion in Paulinia’s capacity. Included are modifications to the process, as well as to ancillary equipment.
Kraton D polymers are elastic and flexible and when properly formulated can provide a wide range of properties which can enhance the performance of the end-products and applications in which they are used. They provide superior adhesion and tack in adhesive formulations, formulation flexibility and ease of processing in commonly used thermoplastic processing technology, and enhanced performance benefits when used to modify asphalt for road and roofing applications.

The Kraton Polymers Group of Companies pioneered the production of styrenic block copolymers in the 1960s and today retains its position as the world’s leading manufacturer and supplier of the technology. Manufacturers and formulators around the world use Kraton polymers in their compounds and applications to add value to their products through improved finish and advanced manufacturing processes.

For more information, e-mail info@Kraton.com or in the United States call toll-free 1-800-4Kraton.

About Kraton

Kraton Polymers LLC is a premier, global specialty chemicals company and is the world’s largest producer of styrenic block copolymers (“SBCs”), a family of products whose chemistry was pioneered by Kraton over forty years ago.  SBCs are highly-engineered synthetic elastomers, which enhance the performance of 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 road and roofing materials, numerous consumer products (e.g., diapers, tool handles and toothbrushes), tapes, labels, medical applications, packaging, automotive 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, The Netherlands, Germany, France, Brazil, and Japan.

Polymer Holdings LLC is the parent company of Kraton Polymers LLC and has no material assets other than its investment in Kraton Polymers LLC. 

Kraton, the Kraton logo and design are trademarks of Kraton Polymers LLC.

Forward Looking Statements

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