Songwon announces the expansion of its antioxidants capacity

Ulsan, Korea – November 2, 2010 – Songwon Industrial Co. Ltd. announces the expansion of its antioxidants capacity from 55.000 tons to 70.000 tons. The expanded capacity will be on stream from August 2011. The expansion is the result of the consolidation of the Songnox® 1076 production into Songwon’s new fully backwardintegrated Maeam plant.

Jongho Park, Chairman and CEO of Songwon Industrial Co., Ltd. commented; “In 2006 we made a commitment to customers to drive reliability of supply and competitiveness through economies of scale and backward integration from a state of the art facility in Maeam, Korea. Maeam was from the outset dedicated to key antioxidants with critical intermediates fully integrated into the manufacturing process. In 2009 we took backward integration a step further by investing in an isobutylene plant based on proprietary technology. In order to enhance our competiveness and to consolidate our position as partner of choice for the polymer industry, we have now decided to integrate the production of Songnox® 1076 into Maeam. This will create the best possible manufacturing platform for this product in line with our strategy to maximize backward integration and economies of scale. We believe that Maeam is now the biggest plant in the world dedicated to key anitoxidants based on a fully integrated manufacturing process.”

Maurizio Butti, CEO of Songwon International added: “In 2007 we told the market that they could “count on us” for their polymer stabilizers requirements. This move once more shows our continuous commitment to support the polymer industry. This decision is particularly important because this allows Songwon to create additional capacity, not only for Songnox® 1076, but for all our antioxidants as well as enhancing our production flexibility. These two aspects are paramount to our commitment to customers in periods of strong demand, when product availability is critical”. Maurizio concluded: “Last but not least, we will take this opportunity to introduce a new enhanced physical form for Songnox® 1076. The new product, Songnox® 1076 SB will upgrade critical properties making it more robust and easier to handle and will deliver clear benefits for our customers”.

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