02 October 2007 10:51 [Source: ICIS news]
BERLIN (ICIS news)--ExxonMobil Corp will drive production growth in premium products to help deliver earnings stability, ExxonMobil Chemical senior vice president Sherman Glass said on Tuesday.
Output of the energy giant’s performance products, including specialties such as elastomers, oxo products and metallocene polyethylene (PE), grew by 30% in the four years to 2006. That growth will continue over time, Glass said on the sidelines of the European Petrochemical Association conference.
The common features of the businesses are ExxonMobil’s technology position and the demand for quality requirements.
Glass said the industry could see new capacity coming on stream but the question was still when supply/demand balances begin to loosen again.
ExxonMobil has performed strongly in chemicals for the past three years following an earnings trough earlier in the decade. Returns on capital employed have risen sharply, reaching 33.2% in 2006 from 6.1% in 2002.
“The fundamentals look good right now, globally and in ?xml:namespace>
“Our desire is to keep all our manufacturing plants at the front of the supply curve,” he said.
“Our strategy over time is to make our manufacturing facilities globally competitive,” Glass said, adding the company will achieve this by increasing product yields and organisational efficiency.
PX production is to increase by 25% and benzene capacity by 20%, Glass said.
ExxonMobil is also focused on ensuring its core aromatics production sites in
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