KRATON EXPANDS AMS RESIN CAPACITY AT NIORT FACILITY TO SUPPORT CUSTOMER GROWTH

Rhea-AI Summary

Kraton Corporation, a leading producer of specialty polymers, has announced a significant investment in its Alpha Methyl Styrene (AMS) Resins facility in Niort, France. This investment is expected to boost production by 15% by 2023 and reduce solvent consumption by 70%, enhancing the product's life cycle by the end of 2022. Kraton's AMS Resins, particularly its SYLVATRAXX™ Tread Enhancement Additives, are in high demand due to increasing regulatory requirements and the rise of Electric Vehicles (EV), which necessitate improved tire performance.

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• 15% increase in production capacity expected by 2023.
• 70% reduction in solvent consumption, improving environmental impact.

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• None.

HOUSTON, April 4, 2022 /PRNewswire/ -- Kraton Corporation, a leading global sustainable producer of specialty polymers and high-value biobased products derived from pine wood pulping co-products, announces a significant investment in its Alpha Methyl Styrene (AMS) Resins facility in Niort, France. Kraton expects the investment will result in a 15% production increase at the Niort manufacturing facility by 2023. In addition to the capacity increase, Kraton anticipates the investment will lead to a 70% reduction in solvent consumption, creating a favorable impact on the product life cycle by the end of 2022. 

Kraton's AMS Resins, also known as Pure Monomer Resins, are sold in high-end applications such as Tread Enhancement Additives for premium tires and as high-performance tackifying resins in fast-growing adhesive markets. Kraton's SYLVATRAXX™ Tread Enhancement Additives improve the overall performance of tire treads in terms of wet grip, low rolling resistance, and durability, thus enabling safer driving, better fuel efficiency and range. Due to increasingly stringent car emission standards across the globe, these high-performance additives have seen substantial demand growth.

"The rise in Electric Vehicles (EV) also contributes to this growth, as the increased EV weight and higher torque bring new challenges in tire performance," said Torsten Schmidt, Vice President of Commercial, Kraton Pine Chemicals. "Our SYLVATRAXX products continue to gain popularity across the entire tire value chain as they enable our customers to meet these new requirements."

In recent years, Kraton has made significant investments in AMS Resins at the manufacturing facility in Niort, resulting in added operational capacity and improved asset reliability. As customer demand increases, the new growth project focuses on advancing production efficiencies while improving the site's environmental footprint.

In parallel with the current expansion projects, Kraton is exploring additional manufacturing expansion opportunities at the Niort plant beyond the 2023 horizon.

About Kraton Corporation  
Kraton Corporation is a leading global sustainable producer of specialty polymers and high-value biobased products derived from pine wood pulping co-products. Kraton's polymers are used in a wide range of applications, including adhesives, coatings, consumer and personal care products, sealants and lubricants, medical, packaging, automotive, paving and roofing applications. As the largest global provider in the pine chemicals industry, the company's pine-based specialty products are sold into adhesive, road and construction and tire markets, and it produces and sells a broad range of performance chemicals into markets that include fuel additives, oilfield chemicals, coatings, metalworking fluids and lubricants, inks and mining. Kraton offers its products to a diverse customer base in numerous countries worldwide. Kraton and the Kraton logo are registered trademarks of Kraton Corporation, or its subsidiaries or affiliates, in one or more, but not all countries.  

Media Contact: 
Kristen Boyd:
(281) 504-4986

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SOURCE Kraton Corporation

FAQ

What is Kraton's investment in the Niort facility about?

Kraton is investing in its AMS Resins facility in Niort, France, aiming for a 15% production increase by 2023.

How will the investment impact solvent consumption?

The investment is expected to reduce solvent consumption by 70%, enhancing the product's life cycle.

What products are affected by Kraton's expansion?

The expansion affects Kraton's AMS Resins, particularly the SYLVATRAXX™ Tread Enhancement Additives used in tire applications.

What market trends are influencing Kraton's growth?

The rise of Electric Vehicles and stringent car emission standards are driving demand for Kraton's performance additives.

When is the expected completion date for the production increase?

The production increase is expected to be completed by 2023.