02 July 2012 14:51 [Source: ICIS news]
HOUSTON (ICIS)--Global alternative asset manager The Carlyle Group and refiner Sunoco will form a joint venture to allow a Philadelphia refinery to continue operations, the two companies said on Monday.
The 330,000 bbl/day refinery, the oldest on the US east coast, had been scheduled for shutdown in August due to poor economics.
The joint venture, Philadelphia Energy Solutions, is expected to save 850 jobs, secure the region’s fuel supply by continuing the daily flow of 10m gal of fuels and create 100-200 new, permanent jobs, as well as thousands of construction jobs, the companies said in a joint statement.
Sunoco will contribute its Philadelphia refinery assets to the joint venture in exchange for a non-operating minority interest.
The Carlyle Group will fund future capital projects, facility upgrades and enhance the refinery’s working capital.
Carlyle will hold the majority interest, and oversee day-to-day operations of the joint venture and the refinery.
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