Over the past several years, Koppers has researched and developed technology allowing for the effective distillation of certain petroleum feedstocks utilizing the vacuum distillation units that were designed for coal tar. As a result of this extensive work, Koppers has been able to develop new products that should allow for expansion into these new markets, adding incremental growth to its North American Carbon Materials and Chemicals business. Based on current economic conditions, management estimates that the current size of this market is approximately $20 million. As the North American electric arc steel and shooting target industries increase production from currently depressed levels we would expect to see increasing demand levels for petroleum pitch products.
"The petroleum pitch business gives us an opportunity to expand our market position in North America utilizing our existing distillation capacity," said Walt Turner, President and CEO of Koppers.
Mr. Turner continued, "We believe that we have an excellent opportunity to supply a new product to our existing electrode customer base as well as to add a new customer base in the shooting target markets. Given that we have the ability to produce these products at our existing distillation facilities and utilize our existing logistics network for distribution, we are uniquely positioned to capitalize on this exciting opportunity for Koppers by offering our customers security of supply and cost-effective transportation of these high-quality products."
About Koppers
Koppers, with corporate headquarters and a research center in Pittsburgh, Pennsylvania, is a global integrated producer of carbon compounds and treated wood products. Including its joint ventures, Koppers operates facilities in the United States, United Kingdom, Denmark, Australia, and China. The stock of Koppers Holdings Inc. is publicly traded on the New York Stock Exchange under the symbol "KOP." For more information, visit us on the Web: www.koppers.com. Questions concerning investor relations should be directed to Brian H. McCurrie at 412 227 2153 or Michael W. Snyder at 412 227 2131.
Safe Harbor Statement
This news release may contain forward-looking statements based on management's current expectations, estimates and projections. All statements that address expectations or projections about the future, including statements about the company's strategy for growth, product development, market position, expected expenditures and financial results are forward-looking statements. Some of the forward-looking statements may be identified by words like "expects," "anticipates," "plans," "intends," "projects," "indicates," and similar expressions. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. Many factors, including those discussed more fully elsewhere in this release and in documents filed with the Securities and Exchange Commission by Koppers, particularly its latest annual report on Form 10-K and quarterly report on Form 10-Q, as well as others, could cause results to differ materially from those stated. These factors include, but are not limited to, changes in the laws, regulations, policies and economic conditions, including inflation, interest and foreign currency exchange rates, of countries in which the Company does business; competitive pressures; the loss of one or more key customer or supplier relationships; customer insolvencies; successful integration of structural changes, including restructuring plans, acquisitions, divestitures and alliances; cost and availability of raw materials; and other economic, business, competitive, regulatory and/or operational factors affecting the business of Koppers generally.
For Information: Brian H. McCurrie Vice President, Chief Financial Officer 412 227 2153 Email Contact
SOURCE: Koppers Holdings Inc.
http://www2.marketwire.com/mw/emailprcntct?id=3CA0536EB794ABEA