Expansion
Texas Petrochemicals will more than double its production of polyisobutylene by mid 2008. The company will add a facility at its Houston, Texas plant. The increase will be by more than 65,000 tons.
Acquisition
Greif has acquired Delta Petroleum from Riverside. Delta is the largest privately owned blender and packager of lubricants, chemicals and glycol-based products in North America, with revenues of more than $182 million. Greif expects earnings to impact its fiscal year 2007, which begins November 1. Delta provides its clients with blending, filling and packaging, drumming, warehousing, distribution and logistics services.
Job cut
Cabot Corp. is laying off 130 employees. This will result in $15 million of pre-tax charges over the coming quarters, but will cut costs in the long term. $8 million of the charges will be taken in the fourth quarter of fiscal year 2006, with the remainder taken in fiscal year 2007. It is estimated that within 18 months, Cabot will make back the $15 million it is paying for terminations benefits and other charges related to the layoffs. Layoffs will be done to streamline the company’s sales, manufacturing, technical service and certain functional groups and are expected to be completed during fiscal year 2007.
Capacity increase
Carus Corp. in Peru, Illinois is expanding its potassium permanganate capacity by 10,000 tons. The increase is a by-product of improved process technology that was intended to reduce costs. The improvements are expected to be completed by the end of 2007.
Opening
National Starch and Chemical opened its expanded adhesives, synthetic polymers and electronic materials manufacturing facility in Salisbury, North Carolina. The multimillion-dollar investment added more than 10,000 square feet of production area.
$25 million investment
Chevron will contribute $25 million to a University of California, Davis research program aimed at technological breakthroughs in the conversion of biomass into transportation fuels. The program is focused on the cellulosic process that would use renewable feestocks like rice straw to produce ethanol and other fuels.
Chemical build
ExxonMobil Chemical is building a specialty compounded products facility in Baton Rouge, Louisiana as part of its commitment to provide engineered thermoplastic materials to the automotive and consumer products industries. Products produced at the facility could include Santoprene thermoplastic elastomers and other specialty elastomers. Construction should be completed by the second quarter of 2007.
