Keyuan Petrochemicals (PINK:KEYP)

NINGBO, China, February 22, 2012 /PRNewswire-Asia-FirstCall/ -- Keyuan Petrochemicals Inc. (OTCQB: KEYP), ("Keyuan" or the "Company"), an independent manufacturer and supplier of various petrochemical products in China, today announced that it has signed a long-term supplier agreement with Shell Petrochemicals Company Limited ("CSPC"), a joint venture between CNOOC and Royal Dutch Shell Group, to purchase butadiene, an essential raw material used in the production of Styrene-Butadiene-Styrene (SBS).

This year (2012) will be the first full year of commercial SBS production. In the past twelve months, the price for butadiene has ranged between approximate $2,144/t and $5,083/t, with current prices at approximate $4,765/t. The one-year agreement with CSPC ensures Keyuan has adequate supply of butadiene to meet its 70,000-ton SBS production target in 2012.

"This agreement provides important stability for one of our new business units," explained Mr. Chunfeng Tao, Chairman and Chief Executive Officer of Keyuan Petrochemicals Inc. "We have secured an adequate supply from a trusted partner and at a reasonable cost. Having recently secured strong orders for SBS, we can now focus on optimizing our production for the remainder of 2012."

CSPC is a joint venture between CNOOC and Shell Nahai BV, a subsidiary of the Royal Dutch Shell Group. With its butadiene production facilities located in Huizhou, Guangdong Province and annual production capacity of 165,000 metric tons of butadiene, CSPC can conveniently ship materials directly to Keyuan's production plants in Ningbo.

NINGBO, China, June 28, 2011 /PRNewswire-Asia-FirstCall/ -- Keyuan Petrochemicals, Inc. (Nasdaq: KEYP) ("Keyuan or the "Company"), a leading merchant manufacturer of various petrochemical products in China, today announced that KEYP and Hangzhou Zhongce Rubber Company Limited "Hangzhou Zhongce") have formally agreed to jointly develop commercial applications for Solution Polymerization Styrene Butadiene Rubber ("SSBR").

"This agreement is another example of our ongoing commitment to develop new products using our innovative technologies," began Chungfeng Tao, Chairman and Chief Executive Officer of Keyuan. "Hangzhou Zhongce is a proven leader in tire production with strong R&D capabilities. Sales of car tires worldwide were $140 billionin 2010(1), which is the largest user of SSBR today, especially for high gear radials. By engaging early in this technology, we expect to gain an advantage by developing commercial applications for SSBR in new markets and capitalizing on a significant growth opportunity."

Tires using SSBR are safer, more fuel efficient and have a lower environmental impact than existing products(2). The EU is encouraging the use of more environmentally friendly tires by enforcing stricter labeling requirements starting in November 2012(3). China is still in the early stage of applying SSBR into tire production, but the market prospect is promising.

Keyuan is working with researchers from Hangzhou Zhongce Rubber Company Limited to develop SSBR over the next several years. The Companies will share the rights to products and technologies developed from this cooperation. Upon successful development of SSBR, Keyuan will be able to produce this new product using the same facility of SBS (Styrene-Butadiene-Styrene) that is currently under construction.