Highlights:
-- Focus on Core Products Growth.
-- New World-Scale PO/SM and BDO Plants.
-- Low Cost Debottlenecks for Polyols and TDI.
NEWTOWN SQUARE, Pa., Dec. 16 /PRNewswire/ -- ARCO Chemical Company
(NYSE: RCM) announced today that its board of directors has approved a
five-year capital spending program of $2.3 billion for the years 1998-2002.
For 1997, ARCO Chemical's capital spending is expected to be about
$275 million. Total capital spending for 1998 is budgeted at $565 million.
About 70% of the capital in the five-year plan is targeted for growth
projects in the company's core propylene oxide, urethanes and performance
products businesses. These projects include a new PO/SM (propylene
oxide/styrene monomer) plant in Rotterdam, the Netherlands, a world-scale BDO
(butanediol) plant, and a significant increment of low-cost capacity for
polyols. In addition, funding is provided for low-cost debottlenecks of our
TDI (toluene diisocyanate) facilities, and a feasibility study for a PO plant
in China.
The remaining 30% of the five-year plan is targeted for environmental,
health and safety projects, caretaker and maintenance and other projects.
Acquisitions, if any, would be additive to the $2.3 billion plan.
Alan R. Hirsig, President and Chief Executive officer, commented, "Our new
capital spending plan provides a continuing platform for achieving profitable
growth in our core businesses while advancing our position of technological
superiority. At the same time, the plan reflects our determined focus on
delivering shareholder value and ensuring that capital dollars are spent
efficiently. We are especially pleased that our capital efficiency efforts
will ensure that our new PO/SM plant will provide the lowest cost PO capacity
in the industry."
The company expects to fund its capital spending program from a
combination of strong operating cash flows and additional borrowing, as
needed.
ARCO Chemical Company is a leading worldwide manufacturer and marketer of
propylene oxide and derivatives and other intermediate chemicals. Its
products are used in a wide range of consumer and industrial goods, including
automotive components, cushioning, paints and coatings, plastics, home
furnishings, engine coolants and reformulated gasoline.
Except for historical facts, the matters discussed in this press release
concerning the company's outlook and five-year capital program are forward-
looking statements. Since these statements are based on certain assumptions
and involve risks and uncertainties, they are subject to change at any time.
Actual results could differ materially from expected results based on numerous
factors, including, the level of product demand, the cost and availability of
raw materials, changes in the competitive environment, the achievement of cost
reductions and efficiencies, the timing and scope of technological advances,
the company's ability to complete construction projects on schedule, the
overall condition of the chemical industry and other risks detailed from time
to time in the company's filings with the Securities and Exchange Commission,
including the Company's Report on Form 10-Q for the quarterly period ended
June 30, 1997.
Visit the new Press Room on ARCO Chemical's website at
http://www.arcochem-news.com where you'll find the Company's press releases,
company facts and figures, photo images, and more. To receive a press release
by fax, call 800-758-5804; use code No. 062063 (US only).
SOURCE ARCO Chemical Company
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Related links:
http://www.arcochem-news.com
CONTACT:
Sallie D. Anderson, Media Relations,
610-359-5773, or Sami Ahmad, Investor Relations, 610-359-3171,
both of ARCO Chemical
CNOC: http://www.prnewswire.com or fax, 800-758-5804, ext.
062063
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