Cytec’s operations improvement initiatives have focused on reducing waste and energy consumption at our manufacturing sites. Our long-term target of 15% improvement in waste reduction and energy efficiency will be completed in 2012. In absolute terms, 2011 saw energy use reductions by 2% percent and waste reductions by 18.9% as compared to 2010.

In the area of waste management, Cytec’s efforts resulted in:

• 12.5% reduction in hazardous waste generation vs 2010
• 6.6% increase in on-site solvent recycling
• 49% increase in selling solvents for reuse

Some of the key waste reduction projects that delivered results in 2011:

• Elimination of hazardous waste by sale of co-product streams
• Waste reclassification from hazardous to non-hazardous thru detailed lab analysis
• Sale of excess solvents for use as a raw material substitute; generating revenue for the site
• Waste water reduction and water saving projects

Cytec has one year remaining in a five-year goal to improve energy efficiency by 15%, MWH energy per kilogram of product. There was a slight decrease of 0.1% in efficiency in 2011, but an improvement in absolute reductions of 2%.

Some of the main energy reduction projects delivering results in 2011 include:

• Improved hot oil units, converted from Diesel to Natural Gas, and installed economizer gaining combustion efficiency and reducing GHG emissions
• At multiple sites implemented energy consumption reporting for operations
• Multiple VFD installations (e.g. cooling water pumps, air compressors)
• More efficient compressed air operations particularly around drying
• Lighting upgrades