OxyChem and Mexichem Announce Startup of their Joint Venture Ethylene Cracker in
Ingleside, Texas
Ingleside Ethylene, LLC, the 50/50 joint venture between Occidental Chemical Corporation (OxyChem), a subsidiary of Occidental
Petroleum Corporation (NYSE:OXY), and Mexichem, S.A.B. de C.V. (BMV:MEXCHEM), today announced that its ethylene cracker at
OxyChem’s Ingleside, Texas, complex has begun operations on schedule and on budget. The ethylene cracker is currently in a
production stabilization phase.
The cracker, which will be operated by OxyChem, has the capacity to produce 1.2 billion pounds (550,000 cubic meters) of
ethylene per year and provide OxyChem with an ongoing source of ethylene for manufacturing vinyl chloride monomer (VCM), which
Mexichem will use to produce polyvinyl chloride (PVC resin) and PVC piping systems. The companies have a 20-year supply
agreement.
“We are pleased to announce the safe startup of the ethylene cracker at our plant in Ingleside. This is a significant milestone
for both OxyChem and Mexichem, enabling us to capitalize on the advantages that shale gas development presents for the chemical
industry. It also helps our companies better compete globally in our respective markets, and gives us an inherent advantage to
manage the cost of ethylene,” said Robert Peterson, President, OxyChem.
“This is a great example of the excellent long-term partnership that Mexichem has with OxyChem, and we are proud that the
ethylene plant was constructed safely, on time and on budget. The facility’s cutting-edge technology makes it one of the most
modern in the world. For Mexichem, the ethylene plant is a vital part of our global strategy to become a vertically integrated
specialty chemicals company with a focus on high-end products,” said Antonio Carrillo, Chief Executive Officer, Mexichem.
The project also includes a pipeline and storage facility at Markham, Texas. Total investment in the project was approximately
$1.5 billion and the facility will provide 150 permanent jobs. Construction began in the second quarter of 2014. In December 2013,
Ingleside Ethylene, LLC awarded CB&I the engineering and construction contract to build the cracker.
About Ingleside Ethylene, LLC
Ingleside Ethylene, LLC is a 50/50 joint venture formed in October 2013 to construct a 1.2-billion-pound per year capacity
ethylene cracker in Ingleside, Texas. OxyChem, based in Dallas, Texas, manufactures and markets basic chemicals, vinyls and other
chemicals used in water treatment, paper production, pharmaceuticals, construction, automobile manufacturing, soaps and
disinfection products, among other applications. OxyChem is the No. 1 producer of VCM worldwide. Mexichem is one of the world’s
largest chemical and petrochemical companies and a leader in the manufacture and supply of plastic piping, contributing to global
development by delivering an extended portfolio of products to high-growth sectors such as infrastructure, housing, datacom and
water management. With operations in over 30 countries worldwide and more than 18,000 employees, Mexichem has annual revenues of
US$5.4 billion and has been traded on the Mexican Stock Exchange for over 30 years. For more information about OxyChem visit
www.oxychem.com and to learn about Mexichem visit www.mexichem.com.
Forward-Looking Statements
Portions of this press release contain forward-looking statements and involve risks and uncertainties that could materially
affect expected results. Factors that could cause results to differ materially include, but are not limited to: global commodity
pricing fluctuations; supply and demand considerations for Occidental's specific products; higher-than-expected costs; general
economic slowdowns domestically or internationally; political conditions and events; litigation; or changes in law or regulations.
Words such as “estimate,” “predict,” “will,” “expect,” “begin” or similar expressions that convey the prospective nature of events
or outcomes generally indicate forward-looking statements. You should not place undue reliance on these forward-looking statements,
which speak only as of the date of this press release. Unless legally required, Occidental does not undertake any obligation to
update any forward-looking statements, as a result of new information, future events or otherwise. Material risks that may affect
results appear in Part I, Item 1A “Risk Factors” of the 2016 Form 10-K.
OxyChem
Media
Eric Moses, 713-497-2017
eric_moses@oxy.com
or
Investors
Richard Jackson, 212-603-8111
richard_jackson@oxy.com
or
On the web:
www.oxychem.com
or
Mexichem
Investors
Marcela Muñoz, (52 55) 5366 4000 x4206
marcela.munoz@mexichem.com
or
Media
Carlos Triujeque, +(52 55) 53516502
carlos.triujeque@bm.com
or
On the web:
www.mexichem.com
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