PHILADELPHIA, Dec. 17 /PRNewswire-FirstCall/ -- Sunoco, Inc. today
announced that its subsidiary, Sun Coke Company, will start the construction
of a Heat Recovery coke manufacturing plant in Haverhill, Ohio, this month.
Initial coke production is expected to be during the first quarter of 2005.
Upon completion, the Haverhill facility will produce approximately
550 thousand tons of screened blast furnace coke per year to be sold to the
International Steel Group ("ISG") under a long-term contract and approximately
450 thousand pounds per hour of steam to be sold to Sunoco's adjacent
phenol-manufacturing facility. Sunoco's investment will be approximately
$140 million.
(Logo: http://www.newscom.com/cgi-bin/prnh/19981105/PHTH006 )
"We are pleased that this agreement expands an already significant
relationship with ISG," said Sunoco Chairman and Chief Executive Officer
John G. Drosdick. "This project further advances the use of our proprietary
cokemaking technology and will supply high-quality, competitively priced coke
to ISG.
"For Sunoco, the project represents a strategic, synergistic and accretive
investment. Financially, the project should provide an attractive return on
investment and generate net income of approximately $15 million annually for
the company. Strategically, this agreement increases our total coke
production by 27 percent and strengthens our supplier relationship with ISG.
In addition, by locating the plant in Haverhill, the heat recovery steam
generation associated with our cokemaking process will provide lower cost
energy to our adjacent phenol-manufacturing complex and will provide that
facility with protection from rising natural gas costs. This agreement
represents a significant step forward for our coke business and its efforts to
add additional value to Sunoco."
Sun Coke Company's process utilizes technology that virtually eliminates
coke oven emissions and is specifically referenced in the U.S. Clean Air Act
as the "maximum achievable control technology" for coke production. The
Haverhill facility will include coal transfer operations, processing and heat
recovery steam generation. Norfolk Southern will provide coal handling
services at their nearby Wheelersburg facility.
Sunoco, Inc. (NYSE: SUN), headquartered in Philadelphia, PA, is a leading
manufacturer and marketer of petroleum and petrochemical products. With
730,000 barrels per day of refining capacity, over 4,600 retail sites selling
gasoline and convenience items, interests in almost 11,000 miles of domestic
crude oil and refined product pipelines and 34 product terminals, Sunoco is
one of the largest independent refiner-marketers in the United States. Sunoco
is a growing force in petrochemicals with approximately six billion pounds of
annual sales, largely chemical intermediates used in the manufacture of
fibers, plastics, film and resins. Utilizing a proprietary technology, Sunoco
also manufactures two million tons annually of high-quality blast furnace coke
for use in the steel industry. For additional information, visit Sunoco's Web
site at http://www.SunocoInc.com.
Those statements made in this release that are not historical facts are
forward-looking statements intended to be covered by the safe harbor
provisions of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Although Sunoco believes that the assumptions
underlying these statements are reasonable, investors are cautioned that such
forward-looking statements are inherently uncertain and necessarily involve
risks that may affect Sunoco's business prospects and performance causing
actual results to differ from those discussed in the foregoing release. Such
risks and uncertainties include, by way of example and not of limitation:
general business and economic conditions; competitive products and pricing;
changes in refining, chemical and other product margins; variation in
petroleum-based commodity prices and availability of crude oil supply or
transportation; fluctuations in supply of feedstocks and demand for products
manufactured; changes in operating conditions and costs; changes in the
expected level of environmental capital, operating or remediation
expenditures; potential equipment malfunction; potential labor relations
problems; the legislative and regulatory environment; plant
construction/repair delays; nonperformance by major customers, suppliers or
other business partners; and political and economic conditions, including the
impact of potential terrorist acts and international hostilities. These and
other applicable risks and uncertainties have been described more fully in
Sunoco's third quarter Form 10-Q filed with the Securities and Exchange
Commission on November 7, 2003 and in other periodic reports filed with the
Securities and Exchange Commission. Sunoco undertakes no obligation to update
any forward-looking statements in this release, whether as a result of new
information or future events.
SOURCE Sunoco, Inc.
 back to top
Related links:
http://www.SunocoInc.com
Company News On-Call:
http://www.prnewswire.com/comp/829144.html
Photo Notes:Logo:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/19981105/PHTH006
PRN Photo Desk, photodesk@prnewswire.com
CONTACT:
Jerry Davis (media) +1-215-977-6298, or Terry
Delaney (investors), +1-215-977-6106, both of Sunoco, Inc.
|
