XOM Exxon Mobil Corp

   By Sarah Coffey 
 

Exxon Mobil Corp. (XOM) on Tuesday said it has started working on engineering plans for a potential U.S. Gulf Coast project that would expand its polypropylene manufacturing capacity by up to 450,000 tons a year.

The Texas-based energy giant said it expects to make a final decision regarding the project later this year. The facility would cost several hundred million dollars, with startup as early as 2021, the company said.

The facility would help meet growing demand for high-performance, lightweight durable plastics and produce advanced polypropylene products that could be used in high-performance automotive, appliance, and packaging applications, the company said.

"Most of our planned investment in the Gulf Coast region is focused on supplying emerging markets like Asia with high-demand products, which ultimately will spur new economic growth locally," said John Verity, president of Exxon's chemical division.

The investment would be one of 13 new facilities planned to expand Exxon's chemical manufacturing capacity in North America and Asia Pacific by about 40%, the company said.

Exxon in January said it plans to spend $50 billion to expand its business in the U.S. in the next five years.

Write to Sarah Coffey at sarah.coffey@wsj.com

(END) Dow Jones Newswires

March 20, 2018 09:50 ET (13:50 GMT)

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