press release

Chevron Press Release - Chevron Chemical Breaks Ground On $70 Million Polyisobutene Plant

BELLE CHASSE, LA. Nov. 19, 1998 Chevron Chemical Co. LLC today announced that it has broken ground on a $70 million Polyisobutene (PIB) manufacturing complex at the companys Oak Point plant in Belle Chasse, La.

The new facility, designed to produce 60,000 metric tons per year of PIB, will be completed in the fall of 1999. The project is the outcome of a licensing agreement with BASF.

The Polyisobutene project will propel Chevron to the forefront of next generation PIB manufacturing in both low cost and high quality, said Gary Enk, technical manager for the Oak Point Plant here.

Within a year, plans are to discontinue the purchase of older technology PIB and to begin manufacturing the most technologically advanced PIB ever developed, said Enk. Because of the highly reactive PIB qualities, we will be able to increase product yields by up to 25 percent and decrease manufacturing time by up to 50 percent.

PIB is used to manufacture dispersants for products such as motor oil. Dispersants protect the longevity of engine parts by keeping contaminants in suspension and preventing them from settling. Coarser contaminants are collected in the engine oil filter while smaller contaminants are kept in suspension and removed when the oil is changed.

This project is the second of three expansion projects announced in July 1997 totaling $100 million. The other projects announced include a Low Overbase Sulfonate which was recently completed. A new employee park will also be built. It is estimated that the three projects will require over 300 contractor jobs.

Chevron Chemicals Oak Point Plant supplies 16 percent of the worlds market for oil and gasoline additives and has operated in Plaquemines Parish for more than 50 years.

Chevron Chemical Co. LLC is a wholly owned subsidiary of Chevron Corp. comprised of 5,000 employees worldwide, with five non-U.S. affiliates and 18 subsidiaries, operating 26 manufacturing plants in 10 states and on four continents. It is the largest non-petroleum subsidiary of Chevron Corp. Its 1997 earnings were $224 million from worldwide sales of $3.6 billion. The Belle Chasse plant has 390 company employees and 187 contract employees.

In both 1997 and 1998 the plant won the Louisiana Governors award for environmental leadership.

Updated: November 1998