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Cytec Assessing Options for New Carbon Fibre Line

23 July 2006

Cytec has completed the exploration phase of a major, new carbon fibre line development initiative and has begun assessing site selection and design details.

This new project follows a carbon fibre capacity expansion slated for later this year at Cytec's Greenville, S.C., plant as well as a sizeable carbon fibre research and development expansion. Cytec is now framing the proposed new fibre line's technical, product and process definitions, which will lead to the detailed design and final capital cost estimate in early 2007.

Cytec Engineered Materials President Steve Speak said, ""In response to the growing demand for carbon fibre materials, we're looking at a phased approach to more than double our carbon fibre capacity at a capital cost in excess of $100 million. Preliminary indications are that a new plant could be operational as early as 2009. We're dedicated to the aerospace industry and would expect to benefit from this investment primarily by using a large part of the additional carbon fibre capacity in our advanced composites product line, which is experiencing significant growth as a result of the secular trend towards increased aerospace composites usage combined with growing production rates.""

Speak added, ""We're also recommissioning and modernizing an existing carbon fibre unit in South Carolina that has been idle in recent years. It is expected to be up and running in the third quarter of this year and will result in a 30 percent hike in our annual carbon fibre capacity. These investments follow an expansion of our carbon fibre R&D facilities begun in 2005 that will be completed shortly.""

Cytec Industries CEO David Lilley said, ""We continue to build on our heritage of carbon fibre development, which includes the breakthrough work of researchers who led the first commercial carbon fibre production process. These investments will ultimately enhance our ability to provide innovative, engineered material solutions for the demanding challenges our customers face.""






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