PITTSBURGH, PA--(Marketwire - Aug 19, 2012) - The Board of Directors of Koppers Holdings Inc. (NYSE: KOP) has approved the formation of a majority-owned joint venture company by its wholly-owned subsidiary, Koppers International B.V., to design and construct a tar distillation plant in partnership with Yizhou Group in Pizhou City, Jiangsu Province, China. The tar distillation facility will be part of an integrated carbon production complex comprised of three plants, including a 300,000 metric ton coal tar distillation plant and two downstream plants producing needle coke and carbon black. The downstream facilities will be owned primarily by subsidiaries of Nippon Steel Chemical Co., Ltd. (Nippon Steel Chemical). It is expected that a significant majority of the production from the coal tar distillation plant will be dedicated for the production of needle coke and carbon black. Plant construction is expected to commence in late 2012 with completion targeted for the first half of 2014. Once fully operational, annualized revenues from the tar distillation facility are estimated to reach $150-200 million.
"We are excited to partner with Nippon Steel Chemical, Yizhou Group and Pizhou City Government for this growth project. This project is unique in many ways including the fact that the end market is driven by needle coke demand, a high value product used in the production of electrodes for the electric arc steel making industry. The joint cooperation among these entities brings together the many strengths of each partner to further expand our presence in the carbon chemicals markets in China," said Walter W. Turner, President and CEO of 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, The Netherlands, 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 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.