press release

Chevron Phillips' St. James Plant Modernization to Increase Styrene Production


This is news concerning Chevron issued by Chevron Phillips Chemical Co., and archived here for record purposes.

HOUSTON, May 14, 2001 -- Chevron Phillips Chemical Company LP announced today it has begun the modernization of its styrene monomer plant in St. James, La., a project that will increase plant production 22 percent when completed in the summer of 2002.

The company's board of directors gave final approval to the project last week. The upgrade of the plant's Styrene Monomer I Unit to state-of-the-art efficiency will increase the total annual plant production to about 2.1 billion pounds. Preliminary construction began in February.

James L. Gallogly, President and Chief Executive Officer, said, "This is the first step in Chevron Phillips Chemical Company's continued growth plans for the styrene business. The upgrade of the St. James plant improves our low-cost manufacturing position, enabling us to continue as a styrene industry leader."

St. James Plant Manager Mike Gilbert said, "The SM I modernization project will bring our older unit up to par with SM II, enabling Chevron Phillips Chemical Company - St. James to produce an additional 400 million pounds per year and remain an industry leader in manufacturing high-quality, low-cost styrene monomer."

John Kmetz, St. James Plant Technical Manager, said the modernization project has received regulatory permit approval. The project will employ about 300 craftspeople during construction and will not interrupt customer supply, Kmetz said.

Styrene is an aromatic monomer used to produce a wide variety of polymers with diverse end uses that include packaging, automotive applications, electronic parts, rubber products, paper, housewares, construction materials, carpeting and toys.

Chevron Phillips Chemical Company LP is one of the world's top producers of styrenics and aromatics and is a leading supplier of olefins and polyolefins, alpha olefins and specialty chemicals. Headquartered in Houston, Texas, the company has assets of more than $6 billion and is owned equally by Chevron Corporation and Phillips Petroleum Company.

Updated: May 2001