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Gulf Coast polypropylene capacity to increase by 450,000 tons per year
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Expansion positions Baton Rouge chemical facility for further growth
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Construction begins in 2019; production startup in 2021
ExxonMobil
said today that it will fund the construction of a new polypropylene
production unit in Baton Rouge that will expand production capacity
along the Gulf Coast by up to 450,000 tons per year.
Construction will begin in 2019 and startup is anticipated by 2021. The
project is expected to create up to 600 jobs during construction and 65
permanent jobs once completed.
“Growth in feedstock supply along with the increase in global demand for
chemical products continues to drive our strategic investments and
expansion along the Gulf Coast,” said John Verity, president of
ExxonMobil Chemical Company. “We’re well positioned to meet the demand
for these high-performance products and investing further in Baton Rouge
enhances our facility’s competitiveness.”
Polypropylene is a versatile material that can help improve the safety
and performance of everyday consumer products and help improve vehicle
fuel efficiency when used to manufacture lighter-weight auto parts.
The engineering, procurement and construction contract has been awarded
to Baton Rouge-based Turner Industries and Jacobs Engineering. The
companies will use local workers to design and construct the new
facility.
This new project is in addition to ExxonMobil’s previously announced
plans to invest $20 billion to build and expand manufacturing facilities
in the U.S. Gulf region as part of its Growing
the Gulf initiative, which is expected to create more than 45,000
high-paying jobs across the region.
Growing the Gulf projects include a new state-of-the-art aviation
lubricants blending, packaging and distribution facility in the Baton
Rouge area as well as refining and chemical expansions at ExxonMobil’s
Beaumont and Baytown facilities. ExxonMobil and SABIC have also created
a new joint venture to advance development of the Gulf Coast Growth
Ventures project, a 1.8 million metric ton ethane cracker currently
planned for construction in San Patricio County, Texas. And, earlier
this month, ExxonMobil and Qatar Petroleum announced
a decision to proceed with the development of the Golden Pass LNG export
project in Sabine Pass, Texas.
ExxonMobil’s integrated operations in Baton Rouge include a 502,000
barrel-per-day refinery, as well as chemical, lubricants and
polyethylene plants. ExxonMobil has more than 2,500 employees in the
Baton Rouge area and its operations account for approximately 1 in every
10 jobs in the region.
About ExxonMobil
ExxonMobil, the largest publicly traded international oil and gas
company, uses technology and innovation to help meet the world’s growing
energy needs. ExxonMobil holds an industry-leading inventory of
resources, is one of the largest refiners and marketers of petroleum
products and its chemical company is one of the largest in the world.
For more information, visit www.exxonmobil.com
or follow us on Twitter www.twitter.com/exxonmobil.
Cautionary Statement: Statements of future
events or conditions in this release are forward-looking statements.
Actual future results, including project plans, costs, schedules; and
capacities, business results, and economic impacts could differ
materially due to changes in market conditions affecting the oil, gas
and petrochemical industries or long-term price levels for oil, gas,
refined products and petrochemicals; political and regulatory
developments including changes in environmental laws and regulations and
obtaining necessary permits and approvals; timely completion of
construction projects; the ability to implement operating and management
improvements as planned; the actions of competitors; the occurrence and
duration of economic recessions; the outcome of commercial negotiations;
and other factors discussed in this release and under the heading
“Factors Affecting Future Results” on the Investors page of ExxonMobil’s
website at www.exxonmobil.com.
Forward-looking statements in this release are based on management’s
information and belief at the time of the release and we assume no duty
to update these statements as of any future date. This release is not
intended to override the corporate separateness of various entities,
including affiliated companies.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190301005337/en/
Copyright Business Wire 2019
Source: Business Wire
(March 1, 2019 - 10:00 AM EST)
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