Printer Friendly

POLYPROPYLENE BUSINESS INTERESTS FORPHILLIPS PETROLEUM AND SUMITOMO ARE BEING EVALUATED FOR '94

 NEW YORK, April 5 /PRNewswire/ -- Phillips Petroleum Company (NYSE: P) and Sumitomo Chemical Company Ltd. could combine their U.S. polypropylene plastics business interests by Jan. 1, the companies reported today.
 Phillips Petroleum and a Sumitomo subsidiary, Sumika Polymers America Corp., are now participating in a feasibility study to determine costs for a new 270 million pounds a year polypropylene plant in Houston; to develop a project execution plan; and to prepare a proposal to proceed.
 The proposal will include a recommendation to move into Phase II of their polypropylene business in the North American market, reported John Hubby of Phillips and Masayoshi Ishikawa of Sumitomo. The executives are, respectively, general manager and deputy general manager of the Phillips/Sumitomo partnership doing business as Phillips Sumika Polypropylene Company (PSPC), based in Houston.
 The study will be completed by the end of the third quarter 1993 and will cover all the polypropylene business of Phillips and Sumitomo for North America. The plan will be presented to the respective partners for approval before the end of the year, said Hubby and Ishikawa.
 Should the new plant project go forward, construction would start in 1994 and be completed in 1995. Hubby and Ishikawa said the initial project would require a very significant capital investment for the new polypropylene plant in Houston. Coupled with production from Phillips existing 480 million pound plant, the new plant would increase the partnership's total production to approximately 750 million pounds annually.
 Upgrading and modernizing of Phillips existing plant, which will be contributed to the partnership, is in progress and will be completed this year.
 Also being evaluated are compounding operations and a technical services center.
 Ishikawa said it is Sumitomo's objective to match up cultures, companies and technologies through the development of Phillips Sumika. "There will be cost savings by sharing and by bringing two companies together that complement each other."
 The Phillips Sumika partnership will combine Phillips strength in polypropylene production and marketing with Sumitomo's technical development capabilities.
 Hubby added that in the past Phillips was not a major player in polypropylene, as it was in the high density polyethylene (HDPE) industry.
 "In the late '80s, Phillips made the decision to reassess its position in polypropylene. The development of the emerging entity known as PSPC has resulted," Hubby said.
 "This combines the expertise of two companies that have worked together since the late '70s when they started a HDPE joint venture in Singapore. That joint venture, which was approved in April 1980, 13 years ago, now produces nearly 400 million pounds a year of HDPE and is now considering a project to more than double its HDPE capacity," Hubby concluded.
 John VanBuskirk, Phillips' vice president of plastics, said "In North America, the world's largest polypropylene market, demand traditionally has been for general purpose resins used to make synthetic fibers, containers and some automotive parts. Demand is now growing for more specialized uses, such as automotive bumpers and door moldings.
 "Phillips strength as a leading U.S. marketer and Sumitomo's strength in proprietary technology for a broader line of resins will unite to meet marketplace requirements."
 -0- 4/5/93
 /CONTACT: Steve Cooper or Alan Hirsch of G+A Communications, 212-221-2267, for Phillips Petroleum Company/
 (P)


CO: Phillips Petroleum Company; Sumitomo Chemical Co. Ltd. ST: Oklahoma IN: OIL SU:

WB-TS -- NY017 -- 3106 04/05/93 14:30 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 5, 1993
Words:560
Previous Article:/C O R R E C T I O N -- RINGLING BROS. AND BARNUM & BAILEY CIRCUS/
Next Article:OUTLINE OF CHARGES AND SEIZURES UNITED STATES V. TONY HABIB
Topics:


Related Articles
SHELL CANADA LTD. TO EXAMINE OPPORTUNITIES
SHELL CANADA LTD. TO EXAMINE OPPORTUNITIES
PHILLIPS/SUMITOMO PARTNERSHIP BUILDS NEW U.S. POLYPROPYLENE PLANT
BROWN & ROOT WINS MULTI-MILLION POLYPROPYLENE EXPANSION
Sumitomo Mitsui Polyolefin to be set up April 1.
MATERIAL GAINS; POLYPROPYLENE IS CHALLENGING WOOL AS THE TOP CHOICE FOR AREA RUGS AND HELPING VENDORS EXPERIENCE SALES GROWTH.
Sumitomo Chemical Announces Expansion of its Polypropylene Compounds Business in North America and Europe.
Two new PP compounds businesses for automotive.
Citi sells Nikko Asset Management to Sumitomo Trust.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters