Our specialty is making products special

Kraton is a global leader in specialty polymers that enhance the performance and appeal of products that touch our daily lives. As a supplier of specialized products and customized solutions, we do not compete in the price-driven commodity chemicals arena. In most applications, Kraton is a small component of the total end product cost, but is a key enabling ingredient that gives end use products their unique qualities and characteristics. As such, our products merit specialty margins and deliver attractive returns.

The Right Chemistry

The majority of Kraton’s products are based on styrenic block copolymer (SBC) chemistry, which we pioneered nearly 50 years ago. These highly engineered synthetic elastomers launched a new era of versatility, aesthetics, durability and performance for a host of consumer and industrial products. Kraton’s vast array of product offerings are organized around three end use markets. A fourth business end use is focused on the development and commercialization of some of our key innovation products. Adhesives, Sealants and Coatings Representing 32 percent of Kraton’s total revenue in 2010, our Adhesives, Sealants and Coatings end use covers a wide range of consumer and industrial applications from disposable hygiene products to packaging tape, labels and decals. Other applications include industrial coatings, protective films, printing plates, insulating gels used in fiber optic cable and clear sealants for the do-it-yourself, home improvement market. This end use derives approximately 80 percent of its sales from adhesives, primarily hot melt pressure sensitive technology, and coatings and sealants represent an area of our business with high growth potential.

Advanced Materials

Advanced Materials accounted for 31 percent of the company’s 2010 revenue, and is our most diverse end use. Whether it is providing stretch to diapers and adult incontinence products, or providing soft-touch surfaces for razors and toothbrushes, the area of personal care continues to represent an important and growing market space for this business. Additionally, new product innovations have led to significant growth across both the medical and the wire and cable markets. Kraton continues to respond to the emerging needs of developing nations, and provides next-generation innovations in materials that allow our customers to offer solutions in a more environmentally responsible manner.

Paving and Roofing

Accounting for approximately 28 percent of our 2010 revenue, Kraton’s Paving and Roofing end use offers asphalt modification solutions that increase lifespan, reduce maintenance and improve asphalt’s ability to withstand temperature extremes and high traffic loads. In some applications, Kraton enables a reduction in pavement thickness of up to 40 percent, delivering enhanced performance as well as environmental benefits. Roofing materials modified with Kraton last longer and are more energy efficient. Approximately 60 percent of sales for this end use are from paving applications, with the balance coming from roofing applications.

Emerging Businesses

Kraton’s Emerging Businesses end use represents a relatively small part of our current revenue, but plays an important role in our future. Accounting for seven percent of our 2010 revenue, this end use nurtures new products, such as our Cariflex™ polyisoprene rubber and our family of NE XAR ™ polymers, from idea through commercialization.