20 August 2012

Koppers Finalizes Approval to Build Tar Distillation Plant in Pizhou, China

20 August 2012 (Marketwire via COMTEX) - The Board of Directors of Koppers Holdings Inc. 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." 

Source: Koppers