press release

Chevron Press Release - Chevron Chemical Company To Expand Paraxylene Capacity At Pascagoula

HOUSTON, Sept. 16, 1996 -- Officials of Chevron Chemical Company today confirmed plans to double the capacity of existing paraxylene manufacturing facilities at Chevron Products Company's Pascagoula, Miss., refinery.

Current annual paraxylene production capacity of 500 million pounds is slated to more than double at Pascagoula, to slightly over one billion pounds per year, following completion of an approximately $200 million expansion. Upon receipt of all required permits for the project, construction is slated to begin during the fourth quarter of this year, with completion anticipated during the second quarter of 1998.

(Note: paraxylene, an aromatic petrochemical, is a primary feedstock used in the manufacture of a variety of consumer products, including polyester fibers, plastic bottles and film.)

"Chevron Chemical Company has been a producer and seller of paraxylene since the beginnings of the polyester market in the 1950s," said John Gaston, Fiber Intermediates General Manager, U.S. Chemicals Division. "By pursuing this expansion, we are renewing our commitment to serve our worldwide customer base as the seller of choice for high-purity paraxylene," he said.

Expansion of Chevron's paraxylene facilities at Pascagoula will incorporate a new, proprietary, high-purity manufacturing technology, called Eluxyl, which was jointly developed by Chevron and Institute Francais Du Petrole (IFP).

According to Gaston, Chevron Chemical Company foresees the worldwide paraxylene market growing worldwide more than seven percent annually for the remainder of the decade. "Fiber consumption is growing with the economies of the Pacific Rim, as is consumer demand in the U.S. based on the convenience of paraxylene-based plastic bottles and containers," Gaston observed.

"With the completion of this expansion, and by utilizing our new technology, we will remain focused as an efficient, reliable supplier of paraxylene for quite some time to come," he concluded.

Updated: September 1996