Engineering News

Cytec Gulf Coast Plants Restarting Operations
Friday September 9, 4:10 pm ET

WEST PATERSON, N.J.--(BUSINESS WIRE)--Sept. 9, 2005--Cytec Industries Inc. has resumed full operations at its Cytec Performance Specialties' facility in Mobile, Alabama. Earlier in the week, employees completed repairs resulting from wind damage from Hurricane Katrina. The Mobile plant is receiving raw materials and is shipping products to meet customer requirements.

The Cytec Building Block Chemicals' Fortier plant, west of New Orleans, Louisiana, is engaged in an orderly restoration of operations as each unit is assessed for damage and repairs are completed. The plant, damaged by high winds from Hurricane Katrina, now has full and stable electrical power that has enabled repairs and a planned start-up sequence of the production units. The acrylamide unit restarted earlier this week and the acrylonitrile, sulfuric acid and melamine units are expected to be back online in the next two weeks. Some telecommunications have been restored to the site. However, customer service coordination centers have been moved offsite to speed the response to customer inquiries until full communications are restored.

Chairman, President and Chief Executive Officer David Lilley said, "At this time, we have been in contact with all of our employees at Mobile and almost all our employees at Fortier. We are grateful for their dedication during this difficult period and are hopeful that we'll know soon that everyone is safe and sound. In the interim, we will provide assistance to our colleagues as we recognize that many of their homes were damaged and need to be restored as quickly as possible."

Force majeure on supply obligations was declared September 2, 2005, for acrylonitrile, aminonitrile and sulfuric acid manufactured at Fortier. This remains in effect and order controls have been activated to release available inventories. Melamine and acrylamide inventories are ample and are being shipped to all customers. Rail and road transportation is improving. However, longer lead times are required from customers to meet delivery schedules but Cytec expects to provide its customers with their full requirements. Throughout this period, all other Cytec plants continued to operate as planned as raw material stocks were adequate.

"At this time we have not completed all the damage assessment and repair work related to Hurricane Katrina so we cannot quantify the financial impact," Lilley added. "We expect to provide this information in our third quarter earnings release."

Source: Cytec Industries Inc.

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