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TPC Group reports progress on polyisobutylene capacity expansion

05.02.2014  | 

TPC Group reported an achievement of a significant milestone in its comprehensive expansion program to increase polyisobutylene capacity.

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TPC Group, reported an achievement of a significant milestone in its comprehensive expansion program to increase polyisobutylene capacity. In early 2013, TPC embarked on an expansion effort to both debottleneck existing capacity and build additional capacity to meet the current and future needs of our customers.

TPC's Board of Directors recently approved funds for the next engineering phase to advance the design of a project to install a third production unit. This project is targeted to satisfy future demand growth, especially that resulting from anticipated changes in lubricating oil standards beginning in January 2017. These higher standards are driving increased use of highly reactive polyisobutylene, which TPC Group manufactures using its proprietary process. TPC is in discussions with its customers regarding definitive off-take commitments for the third production unit, and agreements for these commitments are anticipated by the end of this year.

In parallel with its third production unit engineering work, TPC continues to debottleneck its existing polyisobutylene capacity. Capacity has increased more than 15% since 2012 with additional debottlenecking underway in 2014. This debottlenecking effort is targeted to supply the current and near term needs of our customers in the lubricant additives, sealants, adhesives and industrial lubricants segments.

"TPC's continued capacity increases, combined with our investment in supply chain and logistics infrastructure, demonstrates the Company's commitment to meet the needs of our polyisobutylene customers," said Charlie Graham, SVP of Commercial for TPC Group.

TPC Group first entered the polyisobutylene segment in May 2000 with the startup of its patented process to produce a wide range of polyisobutylene products. Since that time, the business has grown significantly through multiple expansions to become the largest producer in North America. TPC supplies its customers from its Houston production facility, as well as product terminals in Houston and near Chicago, Illinois.



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