Cylics First CBT(R) plant on stream

18-Mar-05

The Cyclics Corporation announced the commissioning of its first CBT manufacturing plant in Germany, with an initial capacity of 2500 metric tons of CBT(R) resin. CBT resins melt to a water-like viscosity when heated and with the use of a catalyst polymerize into the engineering thermoplastic polybutylene terephthalate (PBT). CBT resin is used in compounding, casting, injection molding, nanocomposites, rotational molding, and composites. CBT resin applications under development include wind power blades, rotationally molded parts and fuel tanks, tooling blocks, marine composites, automotive parts and for use as a carrier resin for color and filler concentrates in other plastics. Cyclics' CBT resin processes between 170-240C and is available in both one and two-part systems. The Cyclics plant was built with an investment of EUR 59.4 Million project financing package through a number of German governmental programs and KfW IPEX-Bank. More than 50% of the initial plant capacity is under contract and numerous applications currently in development have led Cyclics to take steps to double the capacity to 5000 metric ton (10 million pounds) by early in 2006. By the fourth quarter of 2005, Cyclics will announce the location of its second, world-scale plant for the production of CBT resin, expected to have an annual capacity of 50-100 million pounds. There has been no decision as to the new plant's location with a number of sites under consideration. Proximity to raw materials, low raw material and energy costs, availability of skilled labor, good transportation routes and attractive financial incentives are among the key criteria. (Based on a company press release)