Melamine: Building Block Building Block Building Block Building Block Chemicals Chemicals Chemicals Chemicals
Melamine: Building Block Building Block Building Block Building Block Chemicals Chemicals Chemicals Chemicals
Melamine: Building Block Building Block Building Block Building Block Chemicals Chemicals Chemicals Chemicals
Chemicals
Melamine
49%
38%
Building Block Chemicals Asia
9% 14%
Cytec Specialty
Chemicals 6%
20% Latin America
22% 42%
Cytec Engineered Materials Europe
Cytec Performance Chemicals*
5
3.80
3.60
3.45
4 3.03 3.07
0
2003 2004 2005 2006 2007E
* Excludes sales of divested water treatment chemicals product lines
** See appendix for reconciliation of Non-GAAP to GAAP EPS 2
Building Block Cytec’s Growth Strategy
Chemicals
Focus on Technology
Grow With New Product
GDP Growth Introductions and Existing Geographic Expansion
Growth With Market Products For New Applications Grow In Areas Such As:
Asia, Latin America
TOP LINE
BOTTOM LINE
31%
20%
37% 33%
Polymer Additives
10% 18%
Urethanes North America Europe
Specialty Additives
#1ininspecialty
#1 specialtymining
miningchemicals
chemicalsfor
forcopper
copperand
andalumina
aluminaprocessing
processing
#1high
#1 highpurity
purityphosphine
phosphineand
andderivative
derivativechemicals
chemicals
AAleading
leadingglobal
globalsupplier
supplierofofpolymer
polymeradditives
additiveslight
lightstabilizers
stabilizers
Nichesupplier
Niche supplierfor
foremulsion
emulsionpolymers,
polymers,inks,
inks,adhesives
adhesivesandandacrylic
acrylicmonomer
monomerstabilization
stabilization
17%
Amino Resins
55%
17% 22%
Powder
Solventborne Europe
Leadershippositions
Leadership positionsinineco-friendly
eco-friendlyand
andsolventborne
solventbornetechnologies
technologies
Globalpresence,
Global presence,including
includingR&D
R&Dand andmanufacturing,
manufacturing,totoservice
servicecustomers
customers
Business Growth
11% CAGR
700
600
500
Sales (M$)
400
300
200
100
0
2002 2003 2004 2005 2006
Diverse Range of Applications Global Reach
High Performance
Non—Aerospace
Asia Europe
Satellite & Launch 9% 8%
3%
Large Commercial
Biz/Reg Jet & Transport
42% 30%
17%
Comm Rotorcraft
62%
29%
North America
Military
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Building Block Building Block Chemicals
Chemicals
Major Products
Acrylonitrile Acrylic Fiber, ABS plastic, Kemira
Hydrocyanic Acid Degussa
• ~410+ employees
• Capacity of over 2 billion pounds of industrial chemical production annually
• Location
800 acres on the Mississippi River
219 acres in process area, 20 acres immediately available
• Continuous process operations
• Access to all major forms of transportation
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Building Block Fortier Plant - History
Chemicals
1954 Today
• Land on which plant is sited was granted to Eugene Fortier by Spanish colonial government in 1776
• Fortier family sugar plantation until late 1800’s
• 1940-1950 was a decade of significant oil discovery and development in Louisiana
• Plentiful quantities of natural gas and limited shipment infrastructure led oil companies to look for natural gas
consuming partners
• Lucrative long-term natural gas contracts brought significant capital investment to the Louisiana gulf coast by
major chemical companies, concentrating in Ammonia and Fertilizer production
• 1953 : American Cyanamid constructs original complex at Fortier consisting of the following:
Ammonia, Acetylene, HCN, Sulfuric Acid, Acrylonitrile, and Ammonium Sulfate
• 1976 : CYRO Joint Venture formed with Rhoem (now subsidiary of Degussa)
• 1989 : AMEL Joint Venture formed with DSM
• 1999 & 2001 : Shutdown of methanol and ammonia facilities due to high U.S. natural gas prices
• 2005 : Sale of Joint Venture interest in CYRO to Degussa (Cytec as operator)
• 2006 : Sale of Acrylamide business lines to Kemira (Cytec as operator)
• 2006: Assume full control of Melamine business with dissolution of AMEL joint venture
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Building Block
Chemicals
Melamine
Plant Characteristics
•Process Description:
Low Pressure Catalytic Trimerization of Urea
Melamine
Urea Section
C
H2N NH2
2NH3 + CO2 →
Ammonia + Carbon Dioxide Urea
Melamine Section
H2N N NH2
O N N
C
H2N NH2 NH2
→
Urea Melamine
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Building Block
Chemicals
Site Integration
Raw Materials Products and Intermediates Applications
Automotive coatings,
CO2 Urea Melamine laminated flooring,
countertops
Ammonia
Acetone
Acrylic sheet, polymer
MMA products, CDs
Methanol
• Target Mix
North America 75%
Europe 25%
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Building Block
Chemicals Technical Aspects
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Building Block
Chemicals Cytec Marketing in Russia
marketed by
Melamine
Branches in
− St. Petersburg, Moscow, Novosibirsk, Yekaterinburg, Chernigov, and Kiev
Strengths
Largest Distributor in Russia
Product delivered to customer with tax and duty requirements completed
Currency capable in Euro, Dollar, Rouble, and Grivna
Inventory stock stored in Russia
Local (Russian) sales and technical support
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Building Block
Chemicals Summary of Cytec Competencies
• Product • Placement
Quality
European Cytec-centric organization
− All Melamine produced to highest experienced in global commerce
melamine specifications supported by
Cytec worldwide demand for Amino
Resins Russian supply chain managed by UTS for
seamless border clearance, delivery, and
support
Reliability
− Business synergies and strong internal
demand support Cytec business model
− Long history of melamine manufacture
• Promotion • Price
UTS provides local expertise for contact on available Product pricing competitive with other high quality
product, logistics, who can provide market feedback sources of supply
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Building Block
Chemicals For More Information
Presented by:
Gregory Zoglio
Director Sales and Marketing
Building Block Chemicals
10800 River Road
Westwego, LA 70098
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