In keeping with Option to Optimize Industry Portfolio and Reinforce Detached Money Stream

PITTSBURGH, Dec. 5, 2024 /PRNewswire/ — Koppers Inc., a wholly-owned subsidiary of Koppers Holdings Inc. (NYSE: KOP), lately introduced that the corporate will discontinue phthalic anhydride manufacturing at its facility in Stickney, Illinois, in 2025.

The verdict, affecting roughly 25 workers, used to be pushed by way of vital near-term capital spending necessities that would no longer be economically correct by way of end-market projections. An ancillary receive advantages is an growth within the website online’s environmental footprint as annual emissions of sure regulated breeze contaminants are anticipated to be decreased by way of 50 to 70 %.

Koppers has centered mid-2025 for the shutdown and expects to ramp i’m sick manufacturing of phthalic anhydride over the then six months as the corporate builds stock to offer current word of honour via 2025, as essential. The closure of the phthalic anhydride plant won’t affect Stickney’s coal tar distillation operations, which form merchandise together with creosote, carbon sound and pavement sealer bottom.

The phthalic anhydride plant at Stickney used to be built to devour naphthalene, a byproduct of the coal tar distillation procedure, as a feedstock to manufacture the chemical intermediate impaired to form plasticizers, polyester resins, and alkyd paints. As availability of coal tar has declined, phthalic anhydride has develop into much less winning as decrease naphthalene manufacturing ended in a want to complement manufacturing with a better share of higher-cost third-party feedstock.

This motion is anticipated to lead to pre-tax fees to income of $51 million to $55 million throughout the terminate of 2026. Roughly $28 million constitutes non-cash fees expected to be recorded in 2024 and 2025 with roughly $23 million to $27 million over the then two years going towards coins expenditures, essentially for plant cleansing, misspend disposal, and shatter prices. Ongoing operational and capital expenditure financial savings were included into the corporate’s stream 2025 objectives of $300 million of adjusted EBITDA and $65 million to $75 million of capital expenditures.

Koppers CEO Leroy Ball mentioned, “The decision to close the phthalic anhydride plant demonstrates our ongoing willingness to critically assess our portfolio and pivot from underperforming businesses when it is clear that improvement is not on the horizon. By focusing on our core strengths, we can continue to enhance our competitive position in healthier markets to drive better long-term returns. Ceasing operations at any plant is never easy, however, this will improve the performance, efficiency, and emissions profile at Stickney. I want to thank our dedicated employees who have worked hard over the years to serve our customers with quality products.  I am mindful of the impact this decision has on them and am committed to ensuring that they are supported through this transition.”

About Koppers

Koppers (NYSE: KOP) is an built-in world supplier of very important handled plank merchandise, plank preservation applied sciences and carbon compounds. Our staff of two,200 workers build, offer protection to and saving key components of our world infrastructure – together with railroad crossties, use poles, out of doors picket constructions, and manufacturing feedstocks for metal, aluminum and building fabrics, amongst others – making use of many years of industry-leading experience week continuously innovating to await the wishes of the next day to come. In combination we’re offering shield and sustainable answers to permit rail transportation, store energy flowing, and build areas of delight for society in every single place. Protective What Issues, Holding The Month. Be informed extra at Koppers.com.

Inquiries from the media must be directed to Ms. Jessica Franklin Lightless at [email protected] or 412-227-2025. Inquiries from the funding society must be directed to Ms. Quynh McGuire at [email protected] or 412-227-2049.

Defend Harbor Commentary

Positive statements on this press reduce are “forward-looking statements” inside the that means of the Personal Securities Litigation Reform Business of 1995 and would possibly come with, however don’t seem to be restricted to, statements about gross sales ranges, acquisitions, restructuring, declines within the worth of Koppers property and the impact of any ensuing impairment fees, profitability and expected bills and coins outflows. All forward-looking statements contain dangers and uncertainties.

All statements contained herein that don’t seem to be obviously historic in nature are forward-looking, and phrases equivalent to “outlook,” “guidance,” “forecast,” “believe,” “anticipate,” “expect,” “estimate,” “may,” “will,” “should,” “continue,” “plan,” “potential,” “intend,” “likely,” or alternative matching phrases or words are most often meant to spot forward-looking statements. Any forward-looking remark contained herein, in alternative press releases, written statements or alternative paperwork filed with the Securities and Change Fee, or in Koppers communications and discussions with buyers and analysts within the commonplace direction of industrial via conferences, telephone yells and convention yells, relating to year dividends, expectancies with appreciate to gross sales, income, coins flows, running efficiencies, restructurings, charge relief efforts, the quantity and timing of the price to income Koppers expects to report, together with the estimates of the full prices anticipated for each and every main form of charge and the anticipated coins outlays, the advantages of acquisitions, divestitures, joint ventures or alternative issues in addition to financings and debt relief, are topic to recognized and unknown dangers, uncertainties and contingencies.

Many of those dangers, uncertainties and contingencies are past our keep watch over, and would possibly motive original effects, efficiency or achievements to fluctuate materially from expected effects, efficiency or achievements. Components that would possibly impact such forward-looking statements come with, amongst alternative issues, the affect of adjustments in commodity costs, equivalent to oil and copper, on product margins; normal financial and trade statuses; doable difficulties in protective our highbrow attribute; the rankings on our debt and our skill to pay off or refinance our exceptional indebtedness because it matures; our skill to function inside the obstacles of our debt covenants; sudden trade disruptions; doable delays in timing or adjustments to anticipated advantages from charge relief efforts; finalization of worker retention and severance preparations; finalization of the accounting affect of the closure; increased than anticipated shatter, website online clearing, environmental remediation or asset leaving prices; doable impairment of our commendation and/or long-lived property; call for for Koppers items and products and services; aggressive statuses; capital marketplace statuses, together with rates of interest, borrowing prices and foreign exchange fee fluctuations; availability and fluctuations within the costs of key uncooked fabrics; disruptions and inefficiencies within the provide chain; financial, political and environmental statuses in world markets; adjustments in rules; the affect of environmental rules and rules; damaging solution of claims towards us, in addition to the ones mentioned extra totally in different places on this reduce and in paperwork filed with the Securities and Change Fee by way of Koppers, specifically our fresh annual file on Method 10-Ok and any next filings by way of Koppers with the Securities and Change Fee. Any forward-looking statements on this reduce discuss handiest as of the era of this reduce, and we adopt incorrect legal responsibility to replace any forward-looking remark to mirror occasions or cases nearest that era or to mirror the prevalence of unanticipated occasions.

SOURCE KOPPERS HOLDINGS INC.

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