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 http://www.oxy.com.
You also can obtain a copy from the SEC by calling 1-800-SEC-0330.