Press Release

Kraton Polymers Enters
Phase One of Capacity Expansion

HOUSTON (JULY 16, 2003) – Kraton Polymers has awarded a detailed engineering contract to Aker Kvaerner to begin work on the capacity expansion for Kraton G polymers at its Belpre, Ohio, plant. The effort to increase production capability is in response to rising demand from customers for high-performance raw materials in the adhesives, construction, compounding and packaging sectors.

“We are on schedule to complete the capacity expansion at Belpre by mid-2004, as originally anticipated,” said Steve Nestlerode, venture manager for the Belpre expansion. “Once completed, this expansion will essentially double the capacity of the G-1 unit at the Belpre plant,” he added. Aker Kvaerner is expected to complete detailed engineering work by March 2004.

The debottleneck at Belpre is based on new proprietary process technologies developed by Kraton Polymers’ global research and manufacturing teams. This investment ensures that Kraton Polymers will continue to bring innovative, high-performance products to market quickly to maintain supply and meet customer needs.

Kraton G polymers are a range of versatile, high-performance materials. They offer a variety of processing and application advantages, such as increased processing stability, oxidation and weather resistance, high temperature performance and “soft-touch” over-molding. Kraton Polymers, the market leader in styrene-ethylene-butylene-styrene (SEBS) products and styrene-ethylene-propylene-styrene (SEPS) products, commercialized the first grades of these products in 1972. Automotive parts, packaging, roofing materials, sealants, construction and footwear are among the diverse applications that can benefit from Kraton G polymers.

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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