Texaco Press Release - Texaco Completes Sale of PO/MTBE Business to Huntsman Specialty
FOR RELEASE: FRIDAY, MARCH 21, 1997.
WHITE PLAINS, N.Y., March 21 - Texaco Inc. announced today that it has completed the sale of its propylene oxide/methyl tertiary butyl ether (PO/MTBE) business to Huntsman Specialty Chemicals Corporation, a subsidiary of Huntsman Corporation, for approximately $600 million.
The PO/MTBE manufacturing site, located adjacent to Huntsman facilities in Port Neches, Texas, has a production capacity of approximately 400 million pounds per year of propylene oxide and approximately 15,000 barrels per day of MTBE. Huntsman has operated the plant for Texaco since it began operations in August 1994.
In addition to the PO/MTBE business, Huntsman today acquired Texaco's exclusive, state-of-the art PO/MTBE manufacturing technology, including the right to license the technology around the world. Texaco and Huntsman also have agreed to a long-term MTBE supply agreement to ensure Texaco a stable source of the gasoline additive.
Commenting on the sale, Texaco Chairman and Chief Executive Officer Peter I. Bijur said, "Today's closing marks the final step in completing the sale of Texaco's chemical business. This will allow Texaco to focus on its exploration, production, marketing and related core businesses."
Propylene oxide is a highly versatile petrochemical used in the home furnishings, construction, appliance, packaging, transportation and surfactants industries. Among its many product applications are foams for furniture and automobile seats; pleasure boats; fiberglass tubs and showers; aircraft deicing fluids; dishwasher detergents; and industrial solvents.
MTBE is a gasoline additive and oxygenate that increases octane and causes gasoline to burn more cleanly. Many areas of the country use MTBE, particularly in the winter months, to help meet requirements of the U.S. Clean Air Act.
Updated: March 1997