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Texas Petrochemicals Receives Final Approval to Expand Polyisobutylene Unit

Published on 2007-11-29. Author : SpecialChem

HOUSTON -- Texas Petrochemicals Inc. (TPI), (OTC: TXPI.PK - News), a Houston based petrochemical company specializing in the production of value added products derived from C4 and C3 hydrocarbons, confirmed its plans to more than double its current production of polyisobutylene (PIB) by mid 2008 with the addition of a new manufacturing facility at its Houston plant site.

Contracts for engineering and construction have been awarded for the scheduled expansion, which received final approval from TPC's Board of Directors. Construction is well underway in the field and major equipment purchases are on order. The plant is designed to produce both highly reactive PIB (HR-PIB) and conventional PIB.

Upon completion, the expansion will supplement the Company's existing production capacity of more than 65,000 metric tons per year, which has been debottlenecked during the past several years. A significant portion of the planned capacity is committed to long-term contracted customers, but unreserved capacity is available for new customers seeking to expand their PIB supply.

"We are pleased with the board's decision to move forward with the construction of the new PIB manufacturing facility. This demonstrates the Company's long-term commitment to fulfill the needs of our customers," said Vice President and General Manager for Performance Products Sandra Davis. "While demand for HR-PIB continues to be significant in both the fuel and lube additives market, TPI also has a strong and growing customer base in the industrial markets, which we will continue to support. We also believe the market can accommodate the additional capacity to serve new applications."

TPI is the only merchant producer of HR-PIB in North America, where its application in lubes and fuel additives continues to generate strong demand. TPI services all PIB markets, which include both the industrial and additive markets.

TPI first entered the PIB market in May 2000 with the startup of its patented process to produce a wide range of PIB products. Since that time, the company has more than doubled its capacity through multiple expansion projects.

TPI's Houston plant manufactures a full range of high-quality polyisobutylene products ranging in molecular weights from 350 to 3500, which service all the major markets including caulks, sealants, adhesives, cling film, lubricant base stocks and personal care. The company is a direct marketer of PIB but also uses national break-bulk distributors. TPI also has an extensive line of highly reactive polyisobutylene products ranging in molecular weights from 350 to 2300, which are especially designed for use as dispersants for lube and fuel additive applications.

Headquartered in Houston, Texas, Texas Petrochemicals Inc. is a premier chemical company with more than $1.5 billion in annual sales. Its products are sold to a wide range of performance, specialty and intermediate markets, including synthetic rubber, fuel additives, plastics and detergents. The Company has manufacturing facilities in the industrial corridor adjacent to the Houston Ship Channel, Port Neches and Baytown, Texas and operates a product terminal in Lake Charles, Louisiana.

Cautionary Information Regarding Forward-Looking Statements

Certain oral and written information that the company may make publicly available from time to time may constitute forward-looking statements. Such statements may relate to future operating results, existing and expected competition, financing and refinancing sources and availability, and plans related to strategic alternatives or other future expansion activities and capital expenditures. Forward-looking statements involve a number of risks and uncertainties that may significantly affect the company's liquidity and results in the future and, accordingly, actual results may differ materially from those expressed in any forward-looking statements. Such risks and uncertainties include, but are not limited to, those related to effects of competition, leverage and debt service, financing and refinancing efforts, litigation and governmental investigations, environmental laws and regulations, general economic conditions and changes in laws or regulations.

Source: Texas Petrochemicals Inc.


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