Chemtura Announces Joint Development Agreement With Caterpillar For Duracast® Technology Application
PHILADELPHIA--(BUSINESS WIRE)-- Chemtura Corporation (NYSE/Euronext Paris: CHMT) today announced it has entered into a joint development agreement with Caterpillar Inc. for novel applications of Chemtura's Duracast® hot-cast urethane pre-polymer technology for construction and mining equipment.
"Duracast® technology is an ideal material for this type of innovative program with varied end-use possibilities. Its versatility and superior abrasion characteristics lend it to a wide range of potential new applications," said Matthew Hellstern, general manager and president of Chemtura's Urethanes business. "Its ease of use, low-waste characteristics, and adaptability to automation yield higher productivity, and efficiency, providing significant added value to end-use customers in niche segments. The multiyear joint development program supports Chemtura's philosophy to bring greater value to our customers through product and application innovation."
The joint development agreement focuses on several novel applications in construction and mining equipment where urethanes have not previously been used, with the objective of providing significant value through productivity and efficiency gains. Initial products to be jointly developed include non-pneumatic tires for certain Cat machines. Prototype development is under way with field evaluation expected to begin by early 2013.
"Caterpillar is constantly looking for ways to differentiate our products and provide solutions that help make our customers more successful, and this partnership with Chemtura is an example of that commitment," said Greg Folley, vice president of Caterpillar's Remanufacturing and Components Division. "We're focusing first on tires for applications in some of the harshest operating environments. Non-pneumatic tires have proven durable in job sites like underground mining, where there is a high risk of cuts and punctures. If we can give our customers another choice that is both durable and sustainable - because urethane tires have high re-usability potential - then we're delivering value to our customers."
Under the agreement, other potential applications of Duracast® technology may include debris guards for use behind tires, ground engagement accessories and wear reduction coatings.
Chemtura Corporation, with 2011 sales of $3.0 billion, is a global manufacturer and marketer of specialty chemicals, agrochemicals and pool, spa and home care products. Additional information concerning Chemtura is available at www.chemtura.com.
This document includes forward-looking statements within the meaning of Section 27(a) of the Securities Act of 1933, as amended and Section 21(e) of the Exchange Act of 1934, as amended. Our forward-looking statements include information concerning possible or assumed future results of operations, and our actual results may differ significantly from the results discussed.In particular, there can be no assurance that the parties will successfully develop or achieve the milestone events on any of the products or that the parties will perform their obligations under the joint development agreement as anticipated. While the parties are bound to proceed with certain obligations, the agreement contains provisions under which parties can reduce or eliminate their obligations to develop products, and no assurance can be given that either party will proceed with the development and commercialization of any product. Other factors that may affect the development and commercialization of products are discussed in Chemtura's Annual Report on Form 10-K for the year ended December 31, 2011, and in other filings made with the Securities and Exchange Commission.Our forward-looking statements are based on our estimates and assumptions and on currently available information. Forward-looking information is intended to reflect opinions as of the date this press release was issued. We undertake no duty to update any forward-looking statements to conform the statements to actual results or changes in our operations.
John Gustavsen, 203-573-3224
Rachel Potts, 309-675-6892
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