Kraton's Suppliers Performance

For our Polymer segment, we procure a substantial majority of our monomers for our Belpre, Ohio, site from U.S. suppliers pursuant to contractual arrangements generally having terms ranging from one to two years, subject to renewal conditions. In Europe, we source our butadiene pursuant to long-term contracts in effect through 2023 for our Berre, France, facility and 2040 for our Wesseling, Germany, facility. We source styrene and isoprene in Europe through a variety of short term contractual arrangements. In Brazil, we generally purchase all our raw materials from local third-party suppliers under short term contractual arrangements. In Japan, butadiene and isoprene are supplied under our joint venture agreement with JSR Corporation (“JSR”) and styrene is sourced from local third-party suppliers.

For our Chemical segment, we have an exclusive long-term supply contract with International Paper, which extends through 2027, pursuant to which they have agreed to sell to us, and we have agreed to purchase from them, all of the CTO and CST produced at its paper mills. We also maintain long-standing relationships with other major suppliers of CTO and CST in the U.S. and Europe. Additionally, our CTO supply sources are further diversified by our ability to refine and process black liquor soap into CTO in the U.S. Most of our Chemical segment manufacturing facilities are located in close proximity to the facilities of our raw material suppliers, allowing us to procure our raw materials at a low delivered cost. Furthermore, we work directly with our suppliers at their production facilities to enhance their CTO and CST yields through technological improvements, which we believe allows us to maximize our raw material supplies, improve the efficiency of our suppliers’ operations and enable us to foster strong, long-lasting relationships with them.

For our Polymer segment, we procure a substantial majority of our monomers for our Belpre, Ohio, site from U.S. suppliers pursuant to contractual arrangements generally having terms ranging from one to two years, subject to renewal conditions. In Europe, we source our butadiene pursuant to long-term contracts in effect through 2023 for our Berre, France, facility and 2040 for our Wesseling, Germany, facility. We source styrene and isoprene in Europe through a variety of short term contractual arrangements. In Brazil, we generally purchase all our raw materials from local third-party suppliers under short term contractual arrangements. In Japan, butadiene and isoprene are supplied under our joint venture agreement with JSR Corporation (“JSR”) and styrene is sourced from local third-party suppliers.

For our Chemical segment, we have an exclusive long-term supply contract with International Paper, which extends through 2027, pursuant to which they have agreed to sell to us, and we have agreed to purchase from them, all of the CTO and CST produced at its paper mills. We also maintain long-standing relationships with other major suppliers of CTO and CST in the U.S. and Europe. Additionally, our CTO supply sources are further diversified by our ability to refine and process black liquor soap into CTO in the U.S. Most of our Chemical segment manufacturing facilities are located in close proximity to the facilities of our raw material suppliers, allowing us to procure our raw materials at a low delivered cost. Furthermore, we work directly with our suppliers at their production facilities to enhance their CTO and CST yields through technological improvements, which we believe allows us to maximize our raw material supplies, improve the efficiency of our suppliers’ operations and enable us to foster strong, long-lasting relationships with them.