Consolidation of Tar Distillation Operations Being Considered
PITTSBURGH, PA -- (Marketwired) -- 07/15/14 --
Koppers Holdings Inc. (NYSE: KOP) today announced that it will be applying for various environmental permits as it investigates the possibility of consolidating its North American tar distillation operations.
"This is another step in Koppers continual process of evaluating opportunities to improve the long-term operating structure of our carbon materials and chemicals business," said Walter W. Turner, President and Chief Executive Officer. "One of the most promising scenarios currently under consideration involves consolidating our tar distillation operations, which would require us to relocate naphthalene production from our Follansbee, West Virginia facility to our Stickney, Illinois facility."
Mr. Turner continued, "A potential plant consolidation in North America would provide Koppers with its first full-service plant that would include coal tar distillation as well as downstream distillate and chemical production of naphthalene and phthalic anhydride. This would allow us to better serve our customers through a more consistent quality, production, and delivery of product while also effectively addressing our goal of being more cost competitive. I expect that we will make a decision within the next several months, once the analysis is completed."
The Company emphasized that any decision concerning this matter was tentative, and would only become finalized after further exploration and discussion with all potentially affected employees and union representatives. If a decision is actually made to move forward, it is possible that a new naphthalene unit could be operational at Stickney in early 2016.
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, Canada, 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 at www.koppers.com. Questions concerning investor relations should be directed to Leroy M. Ball at 412 227 2118 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.
Leroy M. Ball
Chief Operating Officer and Chief Financial Officer
412 227 2118
Source: Koppers Holdings Inc.