SI Group buys Baytown chemical plant from TPC Group
Thursday September 15, 2016
The sale includes a propylene derivatives plant and terminal on 10 acres at 4604 W. Baker Road. The plant manufactures products used in the production of plasticizers, detergents, lube oil additives and antioxidants.
“TPC Group and SI Group have a longstanding partnership that extends beyond 25 years,” Frank Bozich, SI Group president and CEO said in an announcement.
“The addition of the Baytown facility further enhances our global capabilities by reinforcing our security of supply, and enabling SI Group to better serve our customers in downstream markets, such as Fuel, Lubricant, and Oilfield additives.”
Schenectady, N.Y.-based SI Group also operates a plant in Freeport.
The sale puts Houston-based TPC Group ahead of its goal of improving earnings and cash position by $100 million in 2016 compared with 2015.
“Year to date we generated more than $120 million of earnings and/or cash improvements versus 2015 and I expect we will close the year at more than $135 million,” Ed Dineen, CEO of TPC Group said in an announcement Thursday.
The Baytown plant, with a capacity to make 160 million pounds of product per year, is the smallest of TPC Group’s three manufacturing sites.
Its plant near the Houston Ship Channel can make up to 1.5 billion pounds of product per year, and Port Neches can make 900 million pounds per year. The company also operates a butadiene product terminal in Lake Charles, La.