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UNOCAL CORP. AND CHEVRON CHEMICAL CO. SIGN AGREEMENT

 UNOCAL CORP. AND CHEVRON CHEMICAL CO. SIGN AGREEMENT
 LOS ANGELES, Nov. 26 /PRNewswire/ -- Unocal Corp. (NYSE: UCL) and


Chevron Chemical Co., a wholly owned subsidiary of Chevron Corp., (NYSE: CHV) said today the companies had signed an agreement for Unocal's Union Oil Co. of California subsidiary to purchase the major part of Chevron Chemical's nitrogen fertilizer business.
 The sale includes Chevron Chemical's manufacturing and storage facilities located in Kennewick and Finley, Wash., and a toll processing agreement for products produced at Chevron's Richmond, Calif., fertilizer plant.
 Completion of the sale is expected in early 1992. Terms of the sale were not disclosed.
 "The addition of these facilities will enable Unocal to be more competitive in the agricultural market and increase the company's production of higher-value, upgraded nitrogen products," said Neal E. Schmale, Unocal senior vice president and president, Unocal Chemicals and Minerals Division.
 Unocal intends to manufacture various nitrogen fertilizer upgraded products at the Kennewick facility and use the Finley plant for storage and terminalling.
 The Agricultural Products Group of Unocal Chemicals and Minerals Division manufactures and markets nitrogen-based fertilizers and chemicals for agricultural use in the western United States and Pacific Rim countries.
 Unocal operates ammonia and urea manufacturing plants in Kenai, Alaska, with additional processing conducted in West Sacramento, Calif.
 Neither Chevron's nitrogen fertilizer manufacturing facility in Richmond, nor its fertilizer manufacturing facility in St. Helens, Ore., are included in the sale.
 The Richmond facility will remain under the ownership of Chevron Chemical and continue to produce nitrogen fertilizers for Unocal under a toll processing agreement. Unocal will market these upgraded products in California and Arizona.
 Chevron plans to continue to operate the St. Helen's facility until a buyer is found, most likely in 1992.
 Chevron Chemical manufactures industrial chemicals and plastics, gasoline and oil additives and the Ortho line of home and garden products.
 Unocal is expected to offer positions to approximately 70 of Chevron's 170 employees at the plants. Transition benefits for Chevron's union-represented employees will be subject to negotiation. The remainder of the Chevron employees either will be offered positions elsewhere with Chevron or provided outplacement and severance benefits.
 The sale is conditioned upon obtaining the necessary permits and government approvals.
 -0- 11/26/91
 /CONTACT: Roger Hahn of Chevron Chemical, 510-842-3038; or Barry Lane of Unocal, 213-977-7601/
 (UCL CHV) CO: Unocal; Chevron Chemical ST: California IN: OIL SU:


AL -- LA017 -- 7375 11/26/91 14:11 EST
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Publication:PR Newswire
Date:Nov 26, 1991
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