press release

Chevron Moves Ahead With Ethylene Plant Expansion In Port Arthur, Texas


PORT ARTHUR, Texas, Jan. 10, 1996 -- Chevron Corporation today announced final approval for a $267 million project to expand and modernize Chevron Chemical Company's Port Arthur, Texas, ethylene production facilities.

The project will increase plant capacity from 1 billion pounds to 1.7 billion pounds per year. Almost all the additional production from the expanded plant will be used to support Chevron Chemical's growing derivatives production, mainly polyethylene and normal alpha olefins, which are used to manufacture plastic bottles, garbage bags and other consumer products.

"This decision by the Corporation highlights Chevron's commitment to the employees of the Port Arthur plant and to the city of Port Arthur," said Plant Manager Gary Yesavage. "Chevron Chemical plans to be in Port Arthur for a long time and the ethylene project will be the cornerstone for our long-term stability. Moreover, it's imperative that we be highly competitive in markets outside of the U.S. By increasing the plant's capacity, we will lower the cost of producing ethylene to a rate that will make us a very strong global player."

Throughout the next year, several hundred construction jobs will be created, culminating with a force of about 1,000 for the expected conversion at year-end 1997. When the project is complete, the plant will add about 20 operations and maintenance positions to its current work force of 240.

Chevron Chemical, headquartered in San Ramon, Calif., is a wholly owned subsidiary of Chevron Corporation.

Updated: January 1996