Press Release

Kraton Polymers Increases Price of SIS & SBS Polymers for North America

HOUSTON (July 1, 2004) – Kraton Polymers will increase the price of SIS & SBS polymers by USD 7 cents per pound (7 CPP) for adhesives customers in North America effective July 15. “Kraton Polymers has continued to see a combination of strong demand for our products, with no relief from continuing increases in feedstock price pressures,” said Richard Brennan, global business manager, adhesives and sealants. “While we have seen sustained growth in certain key markets as alternative technologies have risen in cost, we continue to experience continuous, and severe, margin erosion, with no sign of a downturn in costs.”

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.

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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