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
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 expansion
s 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.