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Keyuan Petrochemicals Inc. ("Keyuan" or "the Company"), an independent manufacturer and supplier of various petrochemical products in China, today announced that one of its production lines for Styrene-Butadiene-Styrene ("SBS") has commenced commercial production after successful trial production and testing in the fourth quarter of 2011.

The Company began construction of its new 70,000 ton SBS production facility in September 2010 and completed construction in September 2011. After several trials and adjustments, one SBS production line began commercial production in December 2011. The Company produced and sold approximately 2,733 MT and 2,623 MT of SBS in the fourth quarter, respectively.

"We are pleased with the initial results from our new SBS production lines," said Mr. Chunfeng Tao, Chairman and Chief Executive Officer of Keyuan Petrochemicals Inc. "We have shipped products to 20 customers and are in active discussions with several more. With solid demand for SBS in China and abroad, we expect to quickly ramp production and sales throughout this year."