ConocoPhillips to Shut Down Cevolution Project; Company to Maintain Carbon Competency.Business/Energy Editors HOUSTON--(BUSINESS WIRE)--Feb. 13, 2003 ConocoPhillips (NYSE NYSE See: New York Stock Exchange :COP COP In currencies, this is the abbreviation for the Colombian Peso. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. ) today announced that it will shut down the company's carbon fibers project, called Cevolution. The company said the decision came after a careful review of a number of different continuation options and is the result of the cumulative effect of market, operating and technology uncertainties. "Individually, these factors would not have deterred us, but collectively they painted a picture that the business opportunity has not proven to be as strong as originally perceived," said Jim Nokes, ConocoPhillips executive vice president, Refining refining, any of various processes for separating impurities from crude or semifinished materials. It includes the finer processes of metallurgy, the fractional distillation of petroleum into its commercial products, and the purifying of cane, beet, and maple sugar , Marketing, Supply and Transportation. "ConocoPhillips is recognized as a world leader in certain carbon technologies. We consider this a competitive advantage in the market place and will continue to seek to improve our technologies and our market position." As a result of this decision, the company anticipates that approximately $125 million will be applied to goodwill. By shutting down carbon fiber research and applications development, annual after-tax operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. will be reduced by approximately $25 million. The company formed the carbon fibers unit in January 2000, and in July 2002, completed construction of its first carbon fibers manufacturing facility in Ponca City Ponca City, city (1990 pop. 26,359), Kay co., N Okla., on the Arkansas River; founded 1893 with the opening of the Cherokee Strip, inc. 1899. It is a trade, processing, and shipping hub in a grain, livestock, and oil area. , Okla. The 175 employees associated with the project will be redeployed or offered severance packages A severance package is pay and benefits an employee receives when they leave employment at a company. In addition to the employee's remaining regular pay, it may include some of the following:
ConocoPhillips is an integrated petroleum company with interests around the world. Headquartered in Houston, the company had approximately 57,000 employees and $77 billion of assets as of Dec. 31, 2002. For more information, go to www.conocophillips.com. |
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