SUGAR LAND, Texas, June 6, 2016 /PRNewswire/ -- Trecora
Resources (NYSE: TREC), a leading provider of high purity specialty
hydrocarbons and waxes, today announced it has received permission
from the Texas Commission on
Environmental Quality to construct and operate a 4,000 barrels per
day reformer unit at its South Hampton Resources (SHR) subsidiary
in Silsbee, Texas.
The new reformer unit further supports the recently completed
D-Train expansion, and utilizes Chevron Phillips Chemical Company's
proprietary Aromax® Process that was originally tested
and proven for commercial application at SHR's Silsbee facility. The Aromax®
Process is ideally suited to the C6+ streams available to SHR
through its integrated, natural gasoline-based high purity pentane
and hexane production trains.
Simon Upfill-Brown, Trecora's President and Chief Executive
Officer, commented, "The Aromax® Process unit will
produce a significantly higher value byproduct stream compared with
our existing reformer. In addition, the new reformer will
provide a secure and reliable source of hydrogen for SHR's high
purity pentane production and custom processing activities.
With these benefits, we remain positioned to meet increased
long–term pentane demand while also achieving a near-term payback
on the project. In recent quarters we have sold our byproduct
volume at average prices below our feedstock cost, which
significantly impacted our gross margins. We expect the
Aromax® Process benzene, toluene and xylene (BTX)
byproduct stream to be sold well above feedstock costs."
The capital investment for this project is estimated at
$45 - $50 million and will be
financed by existing sources of funds. The site of the
reformer unit has been cleared and construction will begin
immediately. The Company expects to complete the project in
the second quarter of 2017.
About Trecora Resources (TREC)
TREC owns and operates
a facility located in southeast Texas, just north of Beaumont, which specializes in high purity
hydrocarbons and other petrochemical manufacturing. TREC also owns
and operates a leading manufacturer of specialty polyethylene waxes
and provider of custom processing services located in the heart of
the Petrochemical complex in Pasadena,
Texas. In addition, the Company is the original developer
and a 35% owner of Al Masane Al Kobra Mining Co., a Saudi Arabian
joint stock company.
Forward-Looking Statements
Statements in this press
release that are not historical facts are forward looking
statements as defined in the Private Securities Litigation Reform
Act of 1995. Forward-looking statements are based upon our belief,
as well as, assumptions made by and information currently available
to us. Because such statements are based upon expectations as to
future economic performance and are not statements of fact, actual
results may differ from those projected. These risks, as well as
others, are discussed in greater detail in Trecora Resources'
filings with the Securities and Exchange Commission, including
Trecora Resources' Annual Report on Form 10-K for the year ended
December 31, 2015, and the Company's
subsequent Quarterly Reports on Form 10-Q. All
forward-looking statements included in this press release are based
upon information available to the Company as of the date of this
press release.
Investor Relations Contact:
Don Markley
The Piacente Group
212-481-2050
trecora@tpg-ir.com
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SOURCE Trecora Resources