ExxonMobil to Acquire One of World’s Largest Aromatics Plants
May 10 2017 - 11:00PM
Business Wire
- Agreement signed for the Jurong
Aromatics Corporation plant in Singapore
- Plant will enable cost-competitive
growth of ExxonMobil’s strategic aromatics business
- Proximity to company’s integrated
refining and petrochemical complex will strengthen both sites with
product and logistical synergies
ExxonMobil Chemical Company announced today that its Singapore
affiliate has reached an agreement with Jurong Aromatics
Corporation Pte Ltd to acquire its plant located on Jurong Island
in Singapore.
The plant, one of the largest in the world with an annual
production capacity of 1.4 million tonnes, presents operational and
logistical synergies for ExxonMobil’s integrated refining and
petrochemical complex nearby. The company expects to complete the
transaction in the second half of 2017.
“As a leading global manufacturer of aromatics, the addition of
this aromatics plant to our existing operations in Singapore will
help us better serve our customers in key Asian growth markets,”
said Matthew Aguiar, senior vice president of basic chemicals,
intermediates and synthetics for ExxonMobil Chemical Company. “We
continue to make strategic investments to ensure ExxonMobil is well
positioned to meet increasing global demand for chemical
products.”
Singapore is home to ExxonMobil’s largest integrated refining
and petrochemical complex, which has a crude oil processing
capacity of 592,000 barrels per day and includes two world-scale
steam crackers. Acquisition of the Jurong aromatics plant will
increase ExxonMobil’s Singapore aromatics production to over 3.5
million tonnes per year, of which 1.8 million tonnes is
paraxylene.
“Our growth in Singapore is driven by the expected increase in
global demand for chemical products over the next decade of nearly
45 percent, or about 4 percent per year, which is a faster pace
than energy demand and economic growth,” said Neil Chapman,
president of ExxonMobil Chemical Company. “Nearly three-quarters of
the increased demand is expected to be in Asia Pacific as a result
of its rising prosperity and a growing middle class.”
ExxonMobil has operated in Singapore for more than 120 years and
is one of the country’s largest international manufacturing
investors. Singapore’s integrated petrochemical complex can process
a wide range of feedstocks, from light gases to crude oil. Later
this year, the complex will begin the phased start-up of new
230,000 tonne-per-year specialty polymers facilities that will
produce halobutyl rubber and performance resins for adhesive
applications.
About ExxonMobil Chemical Company
ExxonMobil Chemical Company is one of the largest petrochemical
companies worldwide. The company holds leadership positions in some
of the largest-volume and highest-growth commodity petrochemical
products in the world. ExxonMobil Chemical Company has
manufacturing capacity in every major region of the world, serving
large and growing markets. More than 90 percent of the Company’s
chemical capacity is integrated with large refineries or natural
gas processing plants. To learn more, visit
www.exxonmobilchemical.com.
CAUTIONARY STATEMENT: Statements of future events or
conditions in this release are forward-looking
statements. Actual future results, including project plans and
capacities and future demand growth and market positioning could
differ materially due to changes in market conditions affecting the
oil, gas and petrochemical industries or long-term price levels for
oil, gas, refined products and petrochemicals; political or
regulatory developments, including the granting of required permits
and any changes in environmental laws; the occurrence and duration
of economic recessions; the actions of competitors; technical or
operating factors; the outcome of commercial negotiations; and
other factors discussed under the heading "Factors Affecting Future
Results" in the Investors section of our website
(www.exxonmobil.com) and in Item 1A of our most recent Form 10-K.
Closing of the acquisition is dependent on satisfaction of
conditions specified in the applicable agreement.
Nothing in this material is intended to override the corporate
separateness of Exxon Mobil Corporation and its affiliates. A
reference to ExxonMobil may refer to Exxon Mobil Corporation, one
of its divisions or to companies affiliated to Exxon Mobil
Corporation or to any one of the foregoing. The shorter term is
used merely for convenience and simplicity.
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