July 8, 2014 - Woodland Park, NJ - Cytec Industries Inc. (CYT) announced today that they have entered into strategic discussions with Dralon GmbH, the recognized German manufacturer of acrylic fibers, to support the exploration and development of large tow industrial grade carbon fiber.
Demand for large tow carbon fiber is projected to grow significantly in the coming years, driven by increasing use in industrial markets such as automotive, whereby OEM manufacturers are actively researching the technology to help them achieve lighter-weight vehicles with greater fuel efficiency.
According to Shane Fleming, Chairman, President, and CEO of Cytec Industries, "Cytec offers a strong channel to market given our position today of supplying high performance automotive applications, as well as our decades of experience supplying carbon fiber composite technology to the aerospace industry. We are actively pursuing the development of carbon fiber based composites for the next addressable serial automotive market. Large scale adoption will necessitate the need for a robust supply chain of industrial grade, or high tow fibers, that offer low cost supply and continuity. We are therefore working with Dralon to evaluate the most appropriate solution to address this market, including potential joint investment. Dralon's manufacturing experience in acrylic fiber production, its rich brand identity, and ideal location relative to the target market make for a good strategic partner to explore the possibilities together, including conversion of an existing facility from acrylic to carbon fiber production. As of now we envision operating the carbon fiber production as a separate entity with opportunities to seek additional external partners."
Stefan Braun, Dralon's CEO adds "We are excited to develop a precursor and carbon fiber business by leveraging our strong asset base, together with Cytec, a global leader in carbon fiber-based materials. We are investigating conversion of existing Dralon acrylic fiber production lines for the manufacture of high-quality heavy-tow precursor as well as investment in new carbon fiber lines. With our local footprint, we will be able to offer superior security of supply of high quality large tow carbon fiber to the European market. "
About Cytec
Cytec's vision is to deliver specialty material and chemical 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 and industrial materials, mining and plastics.
For more information about Cytec please visit www.cytec.com (http://www.cytec.com/).
About Dralon
Dralon GmbH is renowned as a recognized global manufacturer of acrylic fibers with two German operations in Dormagen and Lingen.
Contacts:
Jodi Allen
Cytec
Investor Relations
Tel: 1.973.357.3283
Jodi.allen@cytec.com (mailto:Jodi.allen@cytec.com)
Petra Müller-Böttcher
Dralon GmbH
Tel. +49 2133 51 5130
info@dralon.com
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Cytec Industries Inc via Globenewswire
