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PolyOne 2009 Annual Report

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ITEM 2. PROPERTIES<br />

As of February 1, 2010, we operated facilities in the United States and internationally. Our corporate office is located in Avon Lake, Ohio.<br />

We employ approximately 3,900 people and have 47 manufacturing sites and 11 distribution facilities in North America, Europe, and Asia,<br />

and joint ventures in North America. We own substantially all of our manufacturing sites and lease our distribution facilities. We believe that<br />

the quality and production capacity of our facilities is sufficient to maintain our competitive position for the foreseeable future. The following<br />

table identifies the principal facilities of our segments:<br />

Performance Products and<br />

Solutions<br />

International Color and<br />

Engineered Materials<br />

Specialty Color, Additives<br />

and Inks<br />

<strong>PolyOne</strong> Distribution<br />

Long Beach, California Assesse, Belgium Glendale, Arizona Livermore, California<br />

Commerce, California Pudong (Shanghai), China Kennesaw, Georgia Rancho Cucamonga, California<br />

Kennesaw, Georgia (1) Shenzhen, China Suwanee, Georgia (2) Chicago, Illinois (4)<br />

Henry, Illinois Suzhou, China Elk Grove Village, Illinois Ayer, Massachusetts<br />

Terre Haute, Indiana Tianjin, China (2) St. Louis, Missouri Chesterfield Township, Michigan<br />

Louisville, Kentucky Cergy, France Massillon, Ohio Eagan, Minnesota<br />

Sullivan, Missouri Tossiat, France Norwalk, Ohio Statesville, North Carolina<br />

Pedricktown, New Jersey Bendorf, Germany Lehigh, Pennsylvania Massillon, Ohio<br />

Avon Lake, Ohio Gaggenau, Germany Vonore, Tennessee La Porte, Texas<br />

North Baltimore, Ohio Melle, Germany Shenzhen, China (1) Fife, Washington<br />

Clinton, Tennessee Gyor, Hungary Toluca, Mexico Mississauga, Ontario, Canada<br />

Dyersburg, Tennessee Kutno, Poland (9 manufacturing plants) (11 distribution facilities)<br />

Pasadena, Texas<br />

Mumbai, India<br />

Seabrook, Texas Jurong, Singapore (3) Specialty Resin and Intermediates<br />

Orangeville, Ontario, Canada Barbastro, Spain Engineered Materials SunBelt joint venture —<br />

St. Remi de Napierville, Pamplona, Spain McHenry, Illinois McIntosh, Alabama (5)<br />

Quebec, Canada Angered, Sweden Avon Lake, Ohio<br />

Dongguan, China Bangkok, Thailand Dyersburg, Tennessee (1)<br />

(16 manufacturing plants) Istanbul, Turkey North Haven, Connecticut<br />

(18 manufacturing plants) Seabrook, Texas (1)<br />

Suzhou, China<br />

Gaggenau, Germany (1)<br />

Jurong, Singapore (1)<br />

Barbastro, Spain (1)<br />

(4 manufacturing plants)<br />

(1)<br />

(2)<br />

(3)<br />

(4)<br />

(5)<br />

Facility is not included in manufacturing plants total as it is also included as part of another segment.<br />

Facility is not included in manufacturing plants total as it is a design center/lab.<br />

As part of the restructuring actions announced in January <strong>2009</strong>, the Jurong, Singapore facility will be closed during 2010.<br />

Facility is not owned by <strong>PolyOne</strong>, however it is included in distribution facility total as it is a primary distribution location.<br />

Facility is shared as part of a joint venture, not included in manufacturing plants total.<br />

POLYONE CORPORATION<br />

ITEM 3. LEGAL PROCEEDINGS<br />

During 2004, the EPA conducted multimedia inspections at our<br />

polyvinyl chloride resin manufacturing facilities located in Henry,<br />

Illinois and Pedricktown, New Jersey. In December 2007, the EPA<br />

met with the Company for the first time since those inspections to<br />

discuss possible violations of the Clean Air Act, the Clean Water Act<br />

and the Resource Conservation and Recovery Act at each of the<br />

Henry, Illinois and Pedricktown, New Jersey facilities. Discussions<br />

between representatives for the Company and the EPA occurred in<br />

2008, during which we provided additional information as well as<br />

our position regarding the compliance status of the facilities and<br />

discussed certain modifications to testing procedures and record<br />

keeping. In January <strong>2009</strong>, we received a letter from the EPA proposing<br />

a resolution of any violations identified as a result of the<br />

2004 inspection that would include our payment of fines and penalties<br />

in the amount of $1.3 million. We continue to discuss with the<br />

EPA resolution of proposed violations on a mutually agreed basis.<br />

In addition to the matters regarding the environment described<br />

above and in Item 1. under the heading “Environmental, Health and<br />

Safety,” we are involved in various pending or threatened claims,<br />

lawsuits and administrative proceedings, all arising from the ordinary<br />

course of business concerning commercial, product liability,<br />

employment and environmental matters that seek remedies or<br />

damages. We believe that the probability is remote that losses in<br />

excess of the amounts we have accrued could be materially adverse<br />

to our financial position, results of operations or cash flows.<br />

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY<br />

HOLDERS<br />

No matters were submitted to a vote of security holders during the<br />

fourth quarter of <strong>2009</strong>.<br />

EXECUTIVE OFFICERS OF THE REGISTRANT<br />

(Included pursuant to Instruction 3 to paragraph (b) of Item 401 of<br />

Regulation S-K)<br />

12

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