About OxyVinyls                    変遷図

    Oxy Vinyls, LP ("OxyVinyls"), is a joint venture company between Occidental Chemical Corporation ("OxyChem") and The PolyOne Corporation ("PolyOne"), formerly The Geon Company, with assets which encompass PVC resin, vinyl chloride monomer, chlor-alkali (sodium hydroxide, chlorine and hydrogen) and cogeneration of electricity.

   The Company is headquartered in Dallas, Texas, with ownership shared between OxyChem and PolyOne on a 76% and 24% basis, respectively. OxyVinyls is the largest supplier of PVC resin in North America and the third largest supplier in the world, with 4.6 billion pounds of PVC resin capacity, 4.8 billion pounds of vinyl chloride monomer capacity, and a chlor-alkali capacity of 920,000 electrochemical units.

    OxyVinyls is committed to serving the marketplace with high quality materials, building a reliable supply chain, and providing strong leadership in environmental and safety affairs. In addition, OxyVinyls remains committed to the promotion and protection of vinyl and its products.

    The VISION for OxyVinyls is to become a global market leader in the chlorovinyls chain with a focus on innovation, market diversification, and low cost thereby creating value for all stakeholders.

OxyChem Overview

Occidental Chemical Corporation (OxyChem), together with its subdivisions and affiliates, is one of the world's largest chemical producers. Headquartered in Dallas, Texas, OxyChem operates 38 manufacturing facilities worldwide. OxyChem's principal products are commodity chemicals such as chlorine and caustic soda, vinyl chloride monomer (VCM), ethylene dichloride, polyvinyl chloride (PVC), petrochemicals and polymers and plastics that are produced and sold in large volumes, primarily to industrial customers for use as raw materials. OxyChem also produces smaller volume specialty chemical products that enjoy a particular market niche.

In our chemicals business, we are focused on the chlorovinyls chain where we take the building blocks ethylene and chlorine and convert them through a series of intermediate products into PVC. We strengthened our position along the chlorovinyls chain by entering into two major business alliances.

In 1998, Occidental became a 29.5 percent equity partner in Equistar Chemicals, LP, one of the world's largest producers of ethylene and derivatives. Equistar Chemicals, LP is the largest North American and second largest global producer of vinyl chloride monomer (VCM) and chromium chemicals, the second largest North American and third largest global producer of ethylene, the third largest North American and third largest global producer of polyethylene resins and propylene.

In 1999, Occidental combined its PVC business with that of PolyOne Corporation, formerly known as The Geon Company, to form the OxyVinyls alliance. PolyOne is our largest customer for PVC. This new business combination is the largest producer of PVC resins in North America. Occidental is the operator and has a 76 percent interest. OxyVinyls is the largest North American producer of polyvinyl chloride (PVC) resins.

OxyChem is the second largest global producer of chlorine and caustic soda. Through wholly and jointly owned operations, OxyChem also is the world's largest producer of potassium hydroxide, ethylene dichloride, chlorinated isocyanurate products and resorcinol.


PolyOnes   Geon & M.A. Hanna (2000/9/1)

PolyOnes global operations encompass manufacturing centers and joint ventures around the world. As the worlds largest polymer services company, our products include:

Elastomer Compounds
Engineered Compounds
Engineered Films
Screen Printing Inks
Specialty Vinyl Resins
Thermoplastic Colors & Additives
Thermoplastic Elastomer Compounds
Vinyl Compounds
Vinyl Plastisols & Powders


M.A. Hanna, Geon To Unite As PolyOne Corporation

CLEVELAND, June 20 /PRNewswire/ -- The Geon Company (NYSE: GON) and M.A. Hanna Company (NYSE: MAH) jointly announced today that the new company they plan to form as a result of their previously announced consolidation will be named PolyOne Corporation.

M.A. Hanna and Geon announced on May 8 that both boards of directors had approved a consolidation of the two companies to create a $3.5 billion company that will be the world leader in polymer services. The combination should be completed in the third quarter, pending regulatory review and shareholder approval.

The new name was developed to describe these important characteristics of the new company:

Leadership in markets, technology and value to shareholders

A single source for customers to look to for solutions and growing needs

A combination of businesses and experiences from both companies that creates an important new leader in polymer services

"We wanted our new name to reflect our commitment to customers as well as our growing industry leadership," said Phillip D. Ashkettle, chairman and chief executive officer of M.A. Hanna. "Our job now is to demonstrate to every one of our customers that PolyOne is the kind of company that creates value for them."

Said Thomas A. Waltermire, Geon chairman and chief executive officer, "PolyOne expresses our organizational unity as we create a singularly stronger new company from Geon and M.A. Hanna. In the next few months, we intend to bring all facets together, both operationally and culturally."

M.A. Hanna Company, headquartered in Cleveland, is a $2.3 billion international specialty polymers company focused on the plastics and rubber industries through its operations in North America, Europe and Asia. Its primary businesses are plastics compounding and color and additive systems, rubber compounding and color and additives, and distribution of plastic resins and engineered plastic shapes.

The Geon Company is a leading North American-based polymer services and technology company with operations in vinyl compounds, specialty vinyl resins and formulations, engineered films, and other value-added products and services. Headquartered in Avon Lake, Ohio, The Geon Company and its subsidiaries employ more than 3,200 people and have 30 manufacturing plants in the United States, Canada, England and Australia, and joint ventures in the United States, England, Australia, Singapore and Colombia.

2004/8/5 PolyOne

PolyOne Completes Sale of Elastomers & Performance Additives Business

PolyOne Corporation announced today that it has completed the sale of its Elastomers and Performance Additives business to an entity formed by an investor group led by Lion Chemical Capital LLC and ACI Capital Co., Inc. The parties reported in June that they had reached a definitive agreement.

PolyOne received gross proceeds before associated fees and costs of approximately $120 million, of which $106 million was paid in cash and $14 million in the form of a note from the buyer. This price is within PolyOne's range of estimates for the sale of the Elastomers unit.

PolyOne announced last October that, as part of its efforts to improve profitability and strengthen its balance sheet, it would divest its Elastomers and Performance Additives, Engineered Films and Specialty Resins businesses. As a result, the Company began reporting these business units as discontinued operations in the fourth quarter of 2003.

About PolyOne

PolyOne Corporation, with 2003 annual revenues of approximately $2 billion, is an international polymer services company with continuing operations in thermoplastic compounds, specialty polymer formulations, color and additive systems, and thermoplastic resin distribution. Headquartered in northeast Ohio, PolyOne has employees at manufacturing sites in North America, Europe, Asia and Australia, and joint ventures in North America, South America and Asia. Information on the Company's products and services can be found at http://www.polyone.com .

2003/10/21 PolyOne

PolyOne to Sharpen Business Focus As Next Step in Transformation Plan
  Company's strategic emphasis to be Plastics Compounding, Color and Distribution
  Three non-core business operations will be considered for sale
  Actions intended to clarify mission and reduce debt

PolyOne Corporation, a leading global polymer services company, announced today that its future focus will be on its global Plastics Compounding and Color & Additive Masterbatch businesses, and its Distribution business, the units with the strongest market synergies and potential for success. PolyOne is taking this step as part of its drive to improve profitability and strengthen its balance sheet.

PolyOne's other business operations --
Elastomers and Performance Additives, Engineered Films and Specialty Resins -- are being considered for divestment. The Company has set no deadline for divesting these business operations, which in 2002 had $617 million of PolyOne's $2.5 billion in annual sales and contributed $12 million in operating income before special items. The businesses employ approximately 2,270 people.

"Our Plastics Compounding, Color and Distribution operations have strong market positions and unique linkages with customers and suppliers, which give PolyOne significant advantages," said Chairman and Chief Executive Officer Thomas A. Waltermire. "Most of these units are international in scope, and we believe they have substantial upside potential."

Waltermire added that PolyOne is making this announcement "so that our people and investors have a clear picture of the steps we are taking to strengthen the Company."

PolyOne would use proceeds from its divestiture of the non-core businesses to reduce debt. In December 2002, the Company stated a goal of reducing its debt by $200 million to $300 million. To maximize the value of the non-core operations to shareholders, the Company is implementing improvement plans in each of these units.

Ultimately, "PolyOne will be a smaller but more focused company than it is today," said Waltermire. "Our mission will be to provide materials to plastics processors to help them be competitive on a global basis. These steps will help us achieve this goal and clarify our position in the marketplace."

After divestiture, PolyOne's consolidated business operations would comprise the following:

Plastics Compounding
Vinyl Compounds, with 2002 sales of $627 million, which represented 24 percent of total Company sales. PolyOne enjoys a strong market position and strategic material supply agreements;
Engineered Materials (2002 sales of $332 million, 13 percent of total). This global business has advantageous market positions in Europe, steady growth in Asia and attractive market potential;
Formulators (2002 sales of $180 million, 7 percent of total). This business, which serves niche plastics and coatings markets, has a leading market position and opportunities to expand into specialty molding and coating formulations.

Color and Additive Masterbatch
Color and Additives ($341 million in 2002 sales, 13 percent of total). This business has profitable international operations, and the Company has an action plan to improve the North American operations.

Distribution ($520 million in 2002 sales, 20 percent of total). Distribution serves as a low-cost channel to market in the United States and Canada for PolyOne's manufactured products, broadens the Company's market reach among plastics processors and deepens its supply relationships with major polymer producers.

Excluding the expected divestments, 18 percent of PolyOne's 2002 sales would have been outside North America, in Europe and Asia. To further strengthen this position, PolyOne's Board of Directors recently approved plans to build a new masterbatch and compound plant in China -- the Company's third plant in China and fifth in Asia.

"PolyOne's international operations are among our strengths," said Waltermire. "They give us a competitive advantage and many opportunities for growth."

The businesses being considered for divestment represent approximately one-quarter of PolyOne's total sales:
Elastomers and Performance Additives, with 2002 sales of $364 million, represented 14 percent of sales.
Engineered Films, with $153 million in 2002 sales, accounted for 6 percent of sales.
Specialty Resins, with 2002 sales of $100 million, contributed 4 percent of sales.

Previously, PolyOne identified its equity investments in its Oxy Vinyls, LP and SunBelt Chlor-Alkali joint ventures as non-core. No decision has been made on their potential sale.

Waltermire noted that the redefinition of PolyOne's core capabilities is part of a broader strategy to improve performance and restore profitability.

"This vision of a more tightly focused company complements our ongoing drive to achieve a competitive cost base, as well as the marketplace initiatives that we launched earlier this year to strengthen relationships with customers that have the greatest growth and profit potential," he said. "Our intent is to establish PolyOne as the most reliable low-cost global supplier of plastics compounds and color additives. By playing to the strengths among our businesses, we can help ensure PolyOne's transformation as a successful, profitable company."

October 12, 2004 Vulcan Materials

Vulcan to Sell Chemicals Business

Vulcan Materials Company (NYSE:VMC) announced today that it has reached an agreement to sell the assets of its chemicals business, known as Vulcan Chemicals, to Basic Chemical Company, LLC, a subsidiary of Occidental Chemical Corporation. The consideration to be received by Vulcan for the business consists of cash, contingent future payments under two earnouts, and the assumption of certain liabilities by the purchaser. The assets of Vulcan Chemicals consist of chloralkali plants in Wichita, Kansas, Geismar, Louisiana and Port Edwards, Wisconsin. The sale also includes the assets of Vulcan Chemicals' joint venture located in Geismar.

"Our focus is strategic growth in aggregates and related businesses," said Vulcan's Chairman and Chief Executive Officer Donald M. James. "Although the chloralkali business has been a valuable asset historically, exiting Chemicals will allow us to devote all of our resources to our construction materials business. Operating improvements in our chemical plants over the past several quarters, combined with strong current and projected demand for our products, have improved the outlook for the business. The two earnouts will enable us to participate in the improving chloralkali pricing and the promising future we see for our new HCC-240fa product.

"Our Chemicals Division employees are dedicated and experienced people. They do a great job for us and we believe they will do a great job for Occidental. We believe our chemicals business is more strategic at a company where the focus is on chemicals."

The transaction, which has been structured as a purchase of assets, involves an initial cash payment to Vulcan, contingent future payments, and the transfer of certain liabilities to the purchaser. Cash received at closing is estimated to be $214 million, subject to adjustment for changes in the net working capital of the business. The initial payment will result in net cash proceeds to Vulcan of approximately $155 million, after taxes, transaction costs and the cost of acquiring the remainder of the joint venture. In addition to the cash purchase price, Vulcan will also be entitled to receive cash payments under two separate earnouts, subject to certain conditions. The first earnout is based on ECU (electrochemical unit) and natural gas prices during the five-year period following the closing. Payments under the second earnout will be determined by the performance of Vulcan's hydrochlorocarbon product HCC-240fa, through 2012. Based on the current outlook for ECU values, natural gas prices and marketplace performance of HCC-240fa, Vulcan projects earnout payments of approximately $145 million, with a net present value of approximately $110 million, although there can be no assurance as to the ultimate amount that will be received. Occidental will also assume the ordinary business contracts of Vulcan Chemicals, as well as environmental remediation obligations associated with Vulcan Chemicals' three plant sites.

The initial earnings impact on Vulcan will be a non-cash charge of approximately $0.70 per diluted share, reflecting the difference between the book value of the assets being sold and the upfront cash proceeds, net of transaction costs. Subsequently, proceeds from the earnouts will be recognized as income when received.

Closing of the transaction is subject to customary regulatory and other closing conditions.

Vulcan Materials Company, a member of the S&P 500 index, is the nation's foremost producer of construction aggregates and a major producer of other construction materials. For additional information about Vulcan, see vulcanmaterials.com.


January 5, 2005 LA Times

Occidental Closes a Chemical Factory

The shuttering of the vinyl resins plant, which employed 200 people, will allow the oil producer to focus on profitable businesses.

Occidental Petroleum Corp., the fourth-biggest U.S. oil and natural-gas producer, said Wednesday that it
shut down its vinyl resins factory in Pottstown, Pa., which employed 200 people. The closing reduced fourth-quarter pretax profit by about $53 million.

A write-off of production facilities using mercury cell technology reduced fourth-quarter pretax profit by an additional $12 million, the Los Angeles company said.

The unprofitable vinyl resins business represented about 2.5% of Occidental's chemicals sales, company spokesman Larry Meriage said.

Occidental joins companies such as BP, Europe's largest oil concern, that are closing chemical plants that aren't making a profit. BP said on its website last month that it would close its Linear Alpha Olefin production facility in Pasadena, Texas, by the end of this year.

"They're cleaning things up," said Jim Halloran, who helps manage $33 billion at National City Private Client Group in Cleveland, including 519,000 shares of Occidental. "They're going to end up being more efficient."

Occidental is closing the Pennsylvania plant to focus on its profitable chloralkali and polyvinyl chloride business, Meriage said. The chemicals unit, which accounts for about one-third of Occidental sales, more than doubled its profit in the third quarter to $137 million.

Occidental said it also would report pretax costs of about $76 million in the fourth quarter to increase its environmental remediation reserves, provide for litigation matters and increase self-insurance reserves.

Those fourth-quarter costs were partially offset by a tax credit of about $27 million for settlement of income tax audit issues, the company said. Combined, the costs and credit reduced fourth-quarter after-tax earnings by about $65 million, or 16 cents a share, Occidental said.

Shares of Occidental fell 31 cents to $55.61 on the New York Stock Exchange. The statement was issued after the end of regular trading.

2005/9/27 PolyOne

PolyOne to Sell Engineered Films Unit

PolyOne Corporation (NYSE: POL), a leading global polymer compounding and North American distribution company, has signed a letter of intent to sell its Engineered Films business unit to an investor group comprising members of the unit's management team along with an investor group formed by Matrix Capital Markets.

Matrix Capital is an investment banking firm that has been retained to advise management and arrange financing for the transaction. The new entity, yet to be named, will consist of the operating assets and liabilities of the Engineered Films unit.

Terms of the agreement were not disclosed. PolyOne will retain a minority ownership interest in the new entity.

The sale is subject to the approval of the PolyOne Board of Directors, completion of the required transaction financing, finalization of definitive agreements and completion of due diligence. The transaction is expected to close in the fourth quarter of 2005, subject to the foregoing conditions and other customary closing conditions.

The Engineered Films unit is a leading provider of
customized, high- performance plastic films for use in diverse applications, including automobile and truck interiors, flooring, wall covering and pool liners. Headquartered in Winchester, Virginia, the unit operates manufacturing facilities there and in Lebanon, Pennsylvania. The Engineered Films unit's revenues in 2004 were approximately $126 million.

PolyOne announced in late 2003 that it would confine its strategic emphasis to its Plastics Compounding, Color and Additives Masterbatch, and Distribution businesses. These businesses have leading market positions, and most are global in scope.

In line with this strategy, PolyOne also announced that it would divest its Elastomers and Performance Additives, Engineered Films and Specialty Resins businesses. As a result, the Company began reporting these business units as discontinued operations in the fourth quarter of 2003. PolyOne sold its Elastomers business in August 2004.

About PolyOne
PolyOne Corporation, with 2004 annual revenues of approximately $2.2 billion, is a leading global compounding and North American distribution company with continuing operations in thermoplastic compounds, specialty polymer formulations, color and additive systems, and thermoplastic resin distribution. Headquartered in northeast Ohio, PolyOne has employees at manufacturing sites in North America, Europe, Asia and Australia, and joint ventures in North America and South America. Information on PolyOne's products and services can be found at http://www.polyone.com.

2006/10/26 PolyOne

PolyOne to Acquire Vinyl Compounder in China

PolyOne Corporation announced today that it has signed a definitive agreement to acquire the assets and operations of Ngai Hing PlastChem Company Ltd. This business is the vinyl compounding subsidiary of Ngai Hing Hong Company Limited (毅興行有限公司). The current shareholders of Ngai Hing Hong, which is headquartered in Hong Kong, will retain a 5 percent interest in a new company that PolyOne will establish to conduct vinyl compound business in Asia.

"Positioning PolyOne to capture growth within Asia is one of our core strategies," said Stephen D. Newlin, chairman, president and chief executive officer. "This acquisition will allow us to bring manufacturing for one of our primary businesses, Vinyl Compounds, to China and help to accelerate our business growth there."

Included in the transaction is the transfer of a manufacturing facility in Dongguan 東莞, a city in the Guangdong province of South China. This plant will be PolyOne's fourth manufacturing site in China; the others make products for its Engineered Materials, Color and Additives, and Polymer Coating Systems businesses.

PolyOne Shanghai China 
PolyOne Shenzhen Co. Ltd. 
PolyOne Suzhou China

"We are pleased to welcome the associates of Ngai Hing PlastChem Company to PolyOne," said Robert Rosenau, senior vice president and general manager, Vinyl Compounds. "We believe the combination of NHPC's people and assets with our current Asian customer base, broad product line, market knowledge and technology will make for a winning opportunity in China."

As part of the agreement, PolyOne will also receive 6 million common shares of Ngai Hing Hong Company Limited. The transaction is expected to close during the first half of 2007, pending completion of Stock Exchange of Hong Kong requirements, approval by governmental authorities and other customary closing conditions. PolyOne anticipates the acquisition being accretive to earnings in the first full year of operation.

About PolyOne
PolyOne Corporation, with 2005 annual revenues of approximately $2.5 billion, is the world's premier provider of specialized polymer materials, services and solutions. Headquartered in northeast Ohio, PolyOne has operations in North America, Europe, Asia and Australia, and joint ventures in North America and South America. See www.polyone.com for additional information on PolyOne.

About Ngai Hing Hong Company Limited http://www.nhh.com.hk/
Ngai Hing Hong Company Limited, a plastics resin corporation, was established in 1993 and has been listed on The Stock Exchange of Hong Kong since April 1994. Ngai Hing Hong Company Limited has core businesses in trading and manufacturing of
pigment blends, color masterbatches and compounding services.  

2007/7/6 PolyOne

PolyOne Sells Interest in Oxy Vinyls, LP for $261 Million

- Cash proceeds will be deployed to reduce debt, strengthen financial profile and lower interest expense
- PolyOne retains existing supply agreements with OxyVinyls
- Exit of commodity business will significantly decrease earnings volatility
- PolyOne acquires remaining 10 percent interest in powder compounding operations
- Actions reinforce Company's commitment to its vision and strategy

PolyOne Corporation, a leading global provider of specialized polymer materials, services and solutions, announced today that it has
sold its 24 percent interest in Oxy Vinyls, LP to Occidental Chemical Corporation, a wholly owned subsidiary of Occidental Petroleum Corporation.

Under the terms of the agreement, PolyOne will receive cash proceeds of $261 million for the sale of its 24 percent interest in OxyVinyls. PolyOne will immediately use the proceeds to reduce debt, including the entire outstanding balance of $141.37 million in aggregate principal amount of its 10.625 percent Senior Notes due 2010. As a result of these actions, the Company projects lower interest costs of approximately $25 million in 2008 compared to 2006.

PolyOne will retain the existing
polyvinyl chloride (PVC) resin and vinyl chloride monomer (VCM) supply agreements that it entered into when OxyVinyls was formed. The terms of the supply agreements, including extensions, run through 2024. These agreements ensure consistent, cost-effective raw material supplies that will enable PolyOne to maintain its competitiveness and pursue its strategy of providing value-creating material and service solutions to its customers.

In a related transaction, the Company will acquire
OxyChem's 10 percent interest in PVC Powder Blends, LP for $11 million, which will bring PolyOne's ownership of this PVC compounding operation to 100 percent.

"In one step, we have substantially strengthened our financial profile, eliminated a primary source of earnings volatility and reaffirmed our commitment to our strategy and our confidence in executing it effectively," said Stephen D. Newlin, chairman, president and chief executive officer. "This transaction rebalances our business portfolio and ensures that our core businesses become the primary driver of sustainable earnings growth."

PolyOne announced in the fourth quarter of 2006 that it had embarked upon a transformational strategy based on four key components:
specialization, which shifts the basis of competition to differentiation from cost/commodity, and provides customers with high value-added solutions; globalization, which positions the Company to benefit from its extensive geographic reach; operational excellence, which strengthens PolyOne's capabilities to answer the voice of the customer by enhancing productivity, profitability and efficiency in all phases of its business; and commercial excellence, which mobilizes sales, marketing and innovation expertise to bring to market value-added products and services that provide competitive advantage to customers. Successful execution of this strategy will drive margin improvements and sustainable earnings growth.

As a result of this transaction, the Company anticipates recording an impairment on its OxyVinyls investment in the second quarter, but recording a tax benefit from the reversal of associated deferred tax liabilities upon the confirmation of the sale in the third quarter. The combination of these two factors, as well as the premium costs related to the redemption of the 2010 Senior Notes, is anticipated to result in an overall net book gain. Because of the Company's net operating loss position, the transaction will result in no cash taxes.

"I want to thank the management of OxyVinyls and OxyChem for this mutually beneficial relationship over the past eight years, and for their consistent focus on operating the business successfully," Newlin said. "We look forward to maintaining our significant commercial relationships with OxyVinyls and OxyChem."

OxyVinyls, which was formed on May 1, 1999, combined the PVC and VCM businesses of OxyChem and PolyOne to create one of North America's largest suppliers of PVC resin.

About PolyOne

PolyOne Corporation, with 2006 annual revenues of approximately $2.6 billion, is a leading global provider of specialized polymer materials, services and solutions. Headquartered in northeast Ohio, PolyOne has operations in North America, Europe, Asia and Australia, and joint ventures in North America and South America. See www.polyone.com for additional information on PolyOne.

2007/11/14 PolyOne

PolyOne to Acquire TPE Custom Solutions Provider GLS Corporation
Transaction will advance specialization strategy, open new market opportunities

PolyOne Corporation, a leading global provider of specialized polymer materials, services and solutions, announced today that it has signed a definitive agreement to acquire
GLS Corporation, the leading North American provider of specialty thermoplastic elastomer compounds ("TPE") for consumer and medical applications. GLS has annual sales of approximately $130 million. Terms of the pending transaction were not disclosed. However, PolyOne expects that the acquisition will be slightly accretive to earnings in the first year. Consummation of the transaction is subject to the satisfaction or waiver of customary closing conditions.

GLS, a privately-held company owned by the Dehmlow family, is headquartered in McHenry, Illinois. It has built a superb reputation as a strategic partner to many of the world's best-known companies in developing and marketing highly customized soft TPEs. GLS products give toothbrush handles a softer touch, provide a better grip for electronic devices, create a stronger seal for food and beverage packaging, and enhance the flexibility of medical tubing systems. The company, which serves more than 1,200 customers worldwide, has achieved double-digit revenue growth in each of the last 10 years and is well positioned to capitalize on escalating demand for soft-touch products. With approximately 200 employees, GLS supports its customers with manufacturing facilities in Illinois and Suzhou, China. In 2006, GLS became the first specialty TPE compounder to begin production in China.

The potential acquisition of GLS demonstrates PolyOne's continued commitment to executing a specialization strategy focused on technical innovation, new-product launches, speed to market, and long-term customer alliances rooted in problem solving and value creation. GLS is known for difficult-to-develop specialty compounds and rapid turnaround on customer requests, with a research and development department that operates around the clock. The acquisition of GLS also will provide PolyOne access to new customers in specialized, high-growth markets such as health care and electronics. PolyOne has targeted these markets for expansion and believes there are additional cross-selling opportunities. Moreover, the two companies' global footprints are highly complementary.

"GLS is a very important strategic acquisition and the kind of company that we have been carefully seeking to become a significant part of PolyOne's business portfolio," said Stephen D. Newlin, chairman, president and chief executive officer. "We are delighted to welcome the GLS employees and customers to the PolyOne family. The GLS management team has built a terrific brand and is a customer centric growth company. Its people and technology will be valuable additions to the PolyOne team."

"Combining GLS's technological capabilities with PolyOne's global infrastructure and commercial presence uniquely positions us to capitalize on the expanding TPE market," Newlin added.

Craig Nikrant, PolyOne's vice president and general manager of PolyOne's North American Engineered Materials said, "GLS is a great addition to the global Engineered Materials business portfolio. This acquisition will accelerate the specialization strategy for our global Engineered Materials business and will decisively shift our portfolio as we continue our aggressive evolution into a specialty solutions provider of engineering thermoplastics. The acquisition of GLS, coupled with last year's dedication of our $10 million specialties compounding plant, clearly demonstrates our commitment to our specialization strategy."

"We are delighted to join forces with PolyOne and become a key component in its strategic evolution," said Dan Dague, GLS president. "We were impressed with PolyOne's management, its strategic vision and its corporate philosophies, and believe the combination will result in a new organization that is even stronger and better poised for future success."

Bear, Stearns & Co. Inc. was PolyOne's financial advisor on the GLS acquisition and Jones Day was outside counsel.

GLS Corporation is a global developer and marketer of innovative thermoplastic elastomers (TPEs) with business units in North America, Europe and the Far East.

GLS offers the broadest range of soft touch TPE materials in the industry. The company's cutting-edge materials are found in products for the consumer, medical, sports and leisure, automotive, lawn and garden, appliance, kitchen tool, power tool, personal care and industrial market segments.

GLS, founded in 1979, is based in McHenry, Illinois, about 45 miles northwest of Chicago. It is the global leader in the supply of application-specific, custom formulated soft and ultra-soft TPEs for injection molding and extrusion.