CPChem Shutters Port Arthur Benzene, Cumene

16 June 2003 00:00  [Source: ICB Americas]

Chevron Phillips Chemical Company LP (CPChem) plans to shut down the cumene and benzene extraction units at its Port Arthur, Tex., petrochemicals facility by the end of the year because of poor economic conditions. The company will continue to operate its olefins unit at the site, as well as an existing cyclohexane unit. CPChem will also bring on an additional 266,000 metric ton cyclohexane unit early next year.

"This has been a difficult decision. We have worked closely with our business managers to consider all of our options before taking these actions," notes Dick Cuneo, Port Arthur plant manager for CPChem. "The benzene extraction unit is simply not economically competitive. Also, poor market conditions for cumene made the cumene unit shutdown necessary." The benzene unit produced roughly 530 million pounds per year.

CPChem intends to mothball the cumene unit, which has a nameplate capacity of 1.1 billion pounds until market conditions improve, at which time a restart will be considered. The company says closing both the benzene and cumene units now allows it to consolidate operations and improve its cost structure.

As part of the shutdown, CPChem will reduce the work force at Port Arthur by 25 to 30 percent. The plant currently employs 254 people.

Last year, CPChem announced that it was adding 60,000 tons of cyclohexane capacity in Al Jubail, Saudi Arabia, in conjunction with the Saudi Industrial Investment Group. In late 2001, the company announced it was keeping its benzene and cyclohexane facilities in Guayama, Puerto Rico, closed indefinitely.

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