Alloy Polymers Acquires Texas Toll Compounding Facility

Venture enables Alloy to increase compounding capacity and service capabilities

March 19, 2008

Alloy Polymers, Inc. has completed acquisition of A. Schulman, Inc.’s Orange, Texas, toll compounding facility. The acquisition positions Alloy Polymers to meet the rising demands of its customers, expanding the company’s compounding capacity by more than 100 million pounds and immediately enabling additional service capabilities that include blending, break-bulk repackaging, high-speed bagging, and distribution services.

The acquisition also bolsters Alloy Polymers’ operations in the Gulf Coast. Together with the company’s existing Crockett, Texas, facility, Alloy Polymers now offers a diversified spectrum of services ranging from engineered polymers to commodity resins, black master batches to sophisticated color products, railcar to bag packaging, and lot sizes from under 5,000 pounds to over 100,000 pounds.

“Today we take another step in our strategic vision to provide a broad array of services centered on operational excellence. It’s about delivering more than a compounded product to our customer’s door,” said Charlie Chiappone, president and COO.

The transaction includes a long-term service agreement with A. Schulman to provide high-quality compounding and related services from Alloy Polymers’ North American facilities.

“Working closely with Alloy Polymers for nearly a year now, we have been consistently impressed by their commitment to understanding our business and their development of a comprehensive service solution to address the critical needs of our markets,” said Barry Rhodes, A. Schulman executive vice president and COO of North America.

“A big factor in selecting Alloy Polymers over other toll manufacturers was the fact that they do not have a proprietary product line. They are strictly a service provider,” Schulman added.

“We are pleased to have A. Schulman join Alloy Polymers’ portfolio of market leading customers who have benefited from partnering with us, and we welcome the associates from the Orange, Texas, facility into our family,” added Kamini Pahuja, Alloy Polymers chairman of the board.

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