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TPC Group Announces Progress on Polyisobutylene Capacity Expansion
HOUSTON, Feb. 12, 2015 (GLOBE NEWSWIRE) -- TPC Group, a leading provider of C4 based products and services, announced today achievement of another significant milestone in its comprehensive expansion program to increase polyisobutylene (PIB) capacity.
TPC's Board of Directors has approved funds for the front end engineering and design (FEED) to finalize the design and cost estimate for the installation of a third PIB production unit. This project is targeted to satisfy future industry growth, mainly resulting from anticipated changes in fuel and lubricant additive standards beginning in the second half of 2017. These higher standards are driving substantial growth in demand for highly reactive polyisobutylene, which TPC Group manufactures using its proprietary process. TPC is in discussions with its customers regarding definitive off-take commitments for its third line.
In parallel with its third production unit engineering work, TPC continues to debottleneck its PIB capacity. Capacity has increased more than 20 percent since 2012 with significant progress made in 2014. Additional debottlenecking efforts are continuing in 2015. This debottlenecking effort is targeted to supply the current and near term needs of our customers in the lubricant additives, sealants, adhesives and industrial lubricants segments.
"TPC continues to demonstrate a commitment to meet the needs of our PIB customers and drive growth in this segment of our business," said Charlie Graham, Senior Vice President of Commercial. "The Company is increasing PIB capacity, as well as investing in supply chain and logistics infrastructure and isobutylene supply to further strengthen our position as a strong PIB supplier in North America."
TPC Group first entered the PIB industry in May 2000 with the startup of its patented process to produce a wide range of PIB products. Since that time, the business has grown significantly through multiple expansions to become the largest producer in North America. TPC supplies PIB from its Houston production facility as well as product terminals in Houston and near Chicago, Illinois.
TPC Group Inc. is a leading producer of value-added products derived from niche petrochemical raw materials such as C4 hydrocarbons. The Company sells its products into a wide range of performance, specialty and intermediate segments, including synthetic rubber, fuels, lubricant additives, plastics and surfactants. Headquartered in Houston, Texas, and with an operating history of more than 70 years, the Company has manufacturing facilities in the industrial corridor adjacent to the Houston Ship Channel, Port Neches and Baytown, Texas and operates a butadiene product terminal in Lake Charles, Louisiana. For more information, visit the Company's website at http://www.tpcgrp.com.
CONTACT: Sara Cronin PHONE: 713.475.5243