US speciality chemicals group Cytec Engineered Materials (Tempe, Arizona / USA; www.cytec.com) has decided to delay completion of the USD 200m expansion of carbon fibres production in Piedmont (South Carolina / USA) "for at least twelve months" to safeguard liquidity. Construction work started in 2008 and start-up was originally scheduled for the end of 2010, raising the group's production capacity for PAN-based carbon fibres by 50%. Cytec says investment in the facility totalled USD 66m at year-end 2008.

The group reported sales of USD 3.64 bn in 2008 versus USD 3.5 bn in 2007. It made an operating loss of USD 199m, compared with a profit of USD 206.5m in 2007, but this was entirely due to write-downs of USD 385m in the Surface Specialities segment.

Engineered Materials (composites) grew sales by around 12% to USD 748m and earnings were up 17% in 2008. However, the Q1 2009 results present a very different picture. Revenues were down 15% year-on-year and operating earnings dropped 25%. CEO Shane Flaming anticipates that the figures will remain weak this year.