CPChem announces plans to shut down Benzene extraction and Cumene operations at its Texas facility

Plant Manager for CPChem :"Poor market conditions for cumene make the cumene unit shutdown necessary."

12-Jun-2003

Chevron Phillips Chemical Company LP (CPChem) announced plans to shutdown two process units (the cumene unit and the UDEX benzene extraction unit) by year end at its Port Arthur, Texas facility. As a result of the closures, the company will undertake a reorganization of the Port Arthur facility, which is expected to result in the reduction of approximately 25-30 percent of the workforce at Port Arthur. The plant currently employs 254 employees. CPChem will continue operation of the olefins complex as well as the existing cyclohexane unit at the facility. The construction of the world- scale cyclohexane plant at this facility will continue as planned, with startup expected in early 2004. "This has been a difficult decision. We have worked closely with our business managers to consider all of our options before taking these actions," said Dick Cuneo, Port Arthur Plant Manager for CPChem. "The benzene extraction unit is simply not economically competitive. Also, poor market conditions for cumene made the cumene unit shutdown necessary." CPChem plans to mothball its cumene unit until market conditions improve, at which time a restart will be considered. Closing both the cumene and benzene units now allows CPChem to consolidate operations and improve its cost structure, making the Port Arthur facility more competitive going forward. "We want to assure the community that we are here for the long term. Our recent investment in the construction of the cyclohexane plant at this facility confirms the viability of this site," said Cuneo. Most of the staff reductions will take place by the end of the year. The company is currently evaluating options for the affected employees including redeployment within the company or a severance package.

https://www.chemeurope.com/en/news/24055/cpchem-announces-plans-to-shut-down-benzene-extraction-and-cumene-operations-at-its-texas-facility.html