Cytec Acquires Manufacturing Assets in India
Supports the Growth of the In Process Separation Business
Woodland Park, New Jersey, April 2, 2012 - Cytec Industries Inc. (NYSE:CYT) today announced that it has completed the acquisition of the manufacturing assets of Star Orechem International Private Limited (SOIL), in Nagpur, Central India in a cash transaction for a total 1,848,250,000 Indian Rupees or $37 million US Dollars at current exchange rate. The amount is subject to normal and customary adjustments. The acquisition will increase Cytec's global capacity for its metal extraction product line by approximately 25% and provides the ability to further expand production at the site.
"This acquisition enables us to meet the strong growth we are seeing for our extractant products coming from increased use of this technology in both new copper mining projects as well as existing properties," said Shane Fleming, Chairman, President and CEO of Cytec. "The acquisition expands our global manufacturing footprint for the In Process Separation business, providing us with a more direct supply chain line to better serve our mining customers in Africa and the Asia Pacific region. Consistent with our goal of creating value for our shareholders, we remain focused on strengthening all of our growth platforms."
The acquired operations will manufacture Cytec's ACORGA® solvent extractant products and will also continue to supply solvent extractant products for SOIL's distribution operations and supply obligations. The employees at the manufacturing site will transfer to Cytec. Manufacturing and product qualification will begin immediately and will contribute to the segment's expected double digit sales growth in 2012 and beyond.
Cytec's In Process Separation business is a pioneer in developing innovative technologies as well as new formulations tailored for specific applications to separate desired minerals from complex orebodies. Cytec has a leading position in the metal processing industry, particularly in copper and associated base and precious metals.
Forward-Looking and Cautionary Statements
Except for the historical information and discussions contained herein, statements contained in this release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Achieving the results described in these statements involves a number of risks, uncertainties and other factors that could cause actual results to differ materially, as discussed in Cytec's filings with the Securities and Exchange Commission.
Cytec's vision is to deliver specialty chemical and material technologies beyond our customers' imagination. Our focus on innovation, advanced technology and application expertise enables us to develop, manufacture and sell products that change the way our customers do business. Our pioneering products perform specific and important functions for our customers, enabling them to offer innovative solutions to the industries that they serve. Our products serve a diverse range of end markets including aerospace composites, structural adhesives, automotive and industrial coatings, electronics, inks, mining and plastics.