Kraton Polymers to curtail 50% global SBC capacity to manage cash flow

24-Dec-08

Kraton Polymers LLC, one of the leading producers of engineered polymers, has announced to curtail global production of styrenic block co polymers (SBCs) by a massive 50% due to rising 'destocking' activity by customers and rising company inventory values as a result of low demand. The company will take a number of its SBC production facilities in U.S. and Europe off steam shortly. "Given the rapid and unprecedented deflation in prices for petrochemical based feed stocks, the impact of such deflation on our current inventory values, and a general de-stocking occurring in most of the down-stream value chains we serve, we have decided to take these actions to diligently manage our cash flow," said David Bradley, Kraton's Chief Operating Officer.