Cytec Consolidates Supply Chain Programs
WEST PATERSON, N.J. - Cytec Industries Inc. (NYSE:CYT) announced today that it is consolidating the Supply Chain programs of its two Specialty Chemicals segments which comprised about $800 million of Cytec's 1999 sales. The Supply Chain initiative is being led by Manuel Serrano, Vice President, Global Specialty Chemicals, Supply Chain who will report to James P. Cronin, Executive Vice President and Chief Financial Officer.
Mr. Cronin stated, "The focus of this Supply Chain initiative is to consolidate and improve Cytec's existing Supply Chain activities. We expect to achieve significant, sustainable benefits and enhance the Company's service levels. To achieve these benefits, we are establishing a single comprehensive Supply Chain strategy resulting in better management and control of our Supply Chain processes in Specialty Chemicals.
"We expect to achieve a minimum ongoing, annualized savings rate of $10 million per year from these Supply Chain activities no later than the end of 2001 by leveraging the scale and economics of a globally aligned Cytec Supply Chain organization."
Mr. Serrano commented, "We have centralized much of our two Specialty Chemicals segments' Supply Chain functions. We expect to accelerate the progress already made, and further strengthen our focus on productivity and cost reduction. To achieve this, the centralized Supply Chain team will drive the businesses toward functional commonality and process standardization."
"We anticipate providing our customers with greater efficiency, improved service and seamless linkage with our customers' supply chain."
Company Profile
Cytec Industries Inc. is a global specialty chemicals and materials technology company with 1999 sales of $1.4 billion, and net earnings of $121 million. Cytec's focused growth is based on applying technology to create solutions in partnership with our customers. Served markets include: aerospace, plastics, industrial coatings, mining, and water treatment. Cytec is in the S&P Mid-Cap 400 Index.
Forward Looking and Cautionary Statements
Except for the historical information and discussions contained herein, statements contained in this release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Act of 1995. Achieving the results described in these statements involves a number of risks, uncertainties and other factors that could cause actual results to differ materially, as discussed in Cytec's filings with the Securities and Exchange Commission.
Contact: Cytec Industries Inc., West Paterson William (Bill) Cleary (investment community) (973) 357-3298 George Yuro (973) 357-3319 www.cytec.com