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Occidental Chemical Corporation Announces Plan to Build Membrane Cell Chlor-Alkali Plant in Tennessee

  • OxyChem plant planned for property next to DuPont’s Johnsonville titanium dioxide plant in Humphreys County to maximize shared resources and services
  • OxyChem plans to supply chlorine and caustic soda to DuPont; utilize raw materials provided by DuPont
  • Project estimated to create approximately 85 full-time jobs, and 250-300 construction jobs in Tennessee

DALLAS--(BUSINESS WIRE)--Occidental Chemical Corporation, a subsidiary of Occidental Petroleum Corporation (NYSE: OXY), today announced plans to construct a membrane cell chlor-alkali plant adjacent to DuPont’s Johnsonville titanium dioxide plant in Humphreys County, Tenn., maximizing the companies’ ability to share resources and services.

The OxyChem project is expected to generate an estimated 250-300 construction jobs over a period of 12-18 months and create approximately 85 full-time jobs at the new OxyChem plant.

Under an agreement between the two global companies, OxyChem would supply chlorine and caustic soda to DuPont and utilize raw materials and services provided by DuPont. DuPont uses chlorine and caustic soda to produce titanium dioxide, a white pigment widely used in the coatings, paper, plastics and laminates industries.

Final execution of the project is dependent upon a final review of the project’s economic feasibility once definitive engineering, equipment and construction bids are received, potential economic incentives are defined and all necessary permits are obtained.

“We are excited about the prospect of building a new plant in Tennessee and bringing new jobs to Humphreys County,” said OxyChem President Chuck Anderson. “This project is part of OxyChem’s strategic approach to investing in the right opportunities, maintaining our top-tier market positions and strengthening our long-term partnership with our customers, like DuPont. We very much appreciate the cooperation and encouragement we have received from the state and Humphreys County and look forward to working together to make this a reality in the coming months.”

“I’m pleased OxyChem has selected Humphreys County to invest hundreds of millions of dollars to build a new plant,” said Tennessee Gov. Bill Haslam. “This is great news for the region as we continue to focus on making Tennessee the No. 1 location in the Southeast for high quality jobs. This project will further strengthen not only the local economy but our state’s, and we wish the company great success at this new facility.”

OxyChem’s new chlor-alkali facility will be designed to produce up to 182,500 short tons of liquid chlorine and 200,000 dry short tons of membrane caustic soda per year. The proposed OxyChem plant would ensure the availability of a supply of key raw materials at competitive economics for the DuPont Johnsonville facility – the largest such plant in the world – with a current workforce of approximately 900.

“DuPont welcomes OxyChem to Tennessee,” said Kenneth P. Klein, DuPont Johnsonville plant manager. “We are pleased that this collaboration with OxyChem will capture unique efficiencies, enhancing the sustainability and safety of the Johnsonville Plant and our titanium dioxide pigment business.”

The plant is expected to begin operating in 2013. The project cost is currently estimated at between $250 million and $290 million.

About OxyChem

OxyChem is a wholly owned subsidiary of Occidental Petroleum Corporation, the fourth-largest U.S. oil and gas company, based on market capitalization. OxyChem manufactures and markets basic chemicals, vinyls and other chemicals used in water treatment, paper production, pharmaceuticals, construction, automobile manufacturing, soaps and disinfection products, among others. For every product it makes, OxyChem’s market position is No. 1 or No. 2 in the United States, and No. 1, 2 or 3 in the world. OxyChem is committed to safeguarding the environment and the health and safety of its employees and surrounding communities.

Forward-Looking Statements

Statements in this release that contain words such as “will,” “expect” or “estimate,” or otherwise relate to the future, are forward-looking and involve risks and uncertainties that could significantly affect expected results. Factors that could cause actual results to differ materially include, but are not limited to: not successfully completing (or any material delay in) construction projects; higher-than-expected costs; global commodity price fluctuations and supply/demand considerations for chemicals; and political risk. You should not place undue reliance on these forward-looking statements which speak only as of the date of this release. Unless legally required, Occidental does not undertake any obligation to update any forward-looking statements as a result of new information, future events or otherwise. U.S. investors are urged to consider carefully the disclosures in our Form 10-K, available through the following toll-free telephone number, 1-888-OXYPETE (1-888-699-7383) or on the Internet at You also can obtain a copy from the SEC by calling 1-800-SEC-0330.


Occidental Petroleum Corporation
Eric Moses (media)
Chris Stavros (investors)
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