ST. LOUIS, April 5 /PRNewswire/ -- Premcor Inc. announced today a
restructuring of its St. Louis based general and administrative functions.
"The market place in which we operate today requires an organization
positioned to prosper during favorable market conditions, but structured to be
resilient during the downswings," said Thomas D. O'Malley, chairman, chief
executive officer and president of Premcor. "Following a comprehensive
analysis of our general and administrative structure, we have identified the
changes necessary to align our staff functions to increase efficiency and
eliminate redundancy."
O'Malley announced plans for the restructuring to the 273 employees at
Premcor's St. Louis based administrative offices on Thursday. The plan will
include a reduction in workforce by approximately one-third and relocation of
the company's commercial division to its executive offices in Greenwich,
Connecticut. All other general and administrative support functions will
continue to be headquartered in the St. Louis metropolitan area. Staff
reductions will take place in mid-April. To ease the impact on affected
employees, the company will offer competitive separation packages including
severance pay and career transition assistance. The company expects to incur
a cost of approximately $20 million during 2002 in implementing the general
and administrative restructuring.
Premcor Inc., through its principal operating subsidiaries, The Premcor
Refining Group Inc. and the Port Arthur Coker Company L.P., is one of the
largest independent petroleum refiners and marketers of unbranded
transportation fuels, heating oil, petrochemical feedstocks, petroleum coke
and other petroleum products in the United States. The company has an
aggregate 490,000 barrels per day (bpd) of crude distillation capacity at its
three refineries located in Port Arthur, Texas (250,000 bpd), Lima, Ohio
(170,000 bpd) and Hartford, Illinois, at which the company has announced it
will discontinue operations in October 2002 (70,000 bpd).
This press release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995, including the
company's current expectations with respect to the restructuring of general
and administrative functions at its St. Louis office. Words such as
"expects," "intends," "plans," "projects," "believes," "estimates," "may,"
"will," "should," "shall," and similar expressions typically identify such
forward-looking statements. Even though Premcor believes the expectations
reflected in such forward-looking statements are based on reasonable
assumptions, it can give no assurance that its expectations will be attained.
Factors that could cause actual results to differ materially from expectations
include, but are not limited to, operational difficulties, varying market
conditions, potential changes in gasoline, crude oil, distillate and other
commodity prices, government regulations, and other factors contained from
time to time in the reports filed with the Securities and Exchange Commission
by the company and its subsidiaries, including Sabine River Holding Corp.,
Premcor USA Inc. and The Premcor Refining Group Inc., including quarterly
reports on Form 10-Q, reports on Form 8-K, and annual reports on Form 10-K.
SOURCE Premcor Inc.
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Related links:
http://www.premcorinc.com
CONTACT:
Investors, Karen Davis, +1-314-854-1424, or
Media, Jim Joyce, +1-314-854-1511, both of Premcor Inc.
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