1999-11-22 Regular Meeting - Laserfiche WebLink

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.)I. In J .r, � w k4, whit g apa.t %0&,v ae4C,R .4..% ri..Jh-W,. + mtrw u0-0 ) 116 r--*- EQUISTAR ftumm C1wmicale. LP e ease one" 6News 1221 McKinney, Suite 1800 P.O. Box 384 liouaton, Texas 77253-3848 17131 682-7300 For Information Contact: David Harpole (713) 652-4125 FOR IMMEDIATE RELEASE EQUISTAR TO SHUT DOWN POLYETHYLENE CAPACITY AT LA PORTE HOUSTON, November 18, 1999 — Equistar Chemicals, LP today announced that the company will shut down and `mothball' four polymer reactors at La Porte, Texas, by Feb. 29, 2000 as part of Equistar's long-term asset optimization and utilization strategy. The units include two high density polyethylene (HDPE) reactors with a combined capacity of 300 million pounds per year and two low density polyethylene (LDPE) reactors with a combined capacity of 60 million pounds. "We continue to optimize our asset mix to ensure that we are achieving the highest total value. With the current market conditions in the polyethylene industry and with the flexibility we have within Equistar to utilize other assets, we have elected to `mothball' these reactors at La Porte," said Norman Phillips, Equistar's senior vice president of polymers. "Our recent completion of HDPE expansions has added more than 600 million pounds of HDPE capacity that enables us to meet customer requirements with greater efficiency and reliability. We will be working with customers to identify alternatives for products impacted by the LDPE reactors," Phillips said. In October 1999, Equistar started up its 480 million pounds per year HDPE unit at Matagorda. A 120 million debottleneck at Victoria went into service in late 1999. Between 150 —180 jobs will be eliminated.. This includes approximately 70 — 90 Equistar sitions in operations, technical, laboratory, engineering, administrative and management areas. t(Another 80 — 90 job reductions will come from contract positions. The site will continue to employ out 500 workers. Equistar Chemicals, LP is a joint venture among Lyondell Chemical Company, Millennium Chemicals Inc. and Occidental Petroleum Corporation and combines their olefins, polymers and oxygenated chemicals businesses. Equistar is the largest producer of ethylene and polyethylene resins in North America and a leading supplier of propylene, ethylene oxide/ethylene glycol and polypropylene resins. Equistar was formed in December 1997 and has 18 manufacturing sites located primarily on the U.S. Gulf Coast and Midwest. Company headquarters is in Houston, Texas.