News
Texas Petrochemicals Announces Expansion of Polyisobutylene Unit
HOUSTON (Monday, September 25, 2006) -- TPC Group Inc., (OTC: TXPI.PK - News) (TPI), a Houston based petrochemical company specializing in C4 hydrocarbons, today announced plans to more than double its current production of polyisobutylene (PIB) by mid 2008 with the addition of a new manufacturing facility at its Houston plant site.
The scheduled expansion is expected to supplement the company's existing production capacity of more than 65,000 metric tons per year, which has been debottlenecked during the past several years. A significant portion of the planned capacity is committed to long-term contracted customers, but unreserved capacity is available for new customers seeking to expand their polyisobutylene supply.
"The expansion is driven by our commitment to customers to fulfill their long-term requirements," said Sandra Davis, Vice President, Specialty Polymers and New Business Development. "There is significant demand for highly reactive PIB (HR-PIB) for both fuel and lube additives. In addition, TPI has a strong and growing customer base in the industrial markets, which we will continue to support. We believe overall North American PIB production capacity is tight, and the market can accommodate additional capacity to serve new applications."
TPI is the only merchant producer of HR-PIB in North America, where its application in lubes and fuel additives continues to generate strong demand. TPI services all PIB markets, which include both the industrial and additive markets.
TPI first entered the PIB market in May 2000 with the startup of its patented process to produce a wide range of PIB products. Since that time, the company has more than doubled its capacity through multiple expansion projects.
TPI's Houston plant manufactures a full range of high-quality polyisobutylene products ranging in molecular weights from 350 to 3500, which service all the major markets including caulks, sealants, adhesives, cling film, lubricant base stocks and personal care. The company is a direct marketer of PIB but also uses national break-bulk distributors. TPI also has an extensive line of highly reactive polyisobutylene products ranging in molecular weights from 350 to 2300, which are especially designed for use as dispersants for lube and fuel additive applications.
Headquartered in Houston, Texas, TPC Group Inc. is a premier chemical company with more than $1.5 billion in annual sales. The company provides quality C4 chemical products and services to both local and global industry companies. The company has manufacturing facilities in the industrial corridor adjacent to the Houston Ship Channel and in Port Neches, Texas and operates product terminals in Baytown, Texas and Lake Charles, Louisiana. For more information, visit the Company's web site at www.txpetrochem.com.
Cautionary Information Regarding Forward-Looking Statements
Certain oral and written information that the company may make publicly available from time to time may constitute forward-looking statements. Such statements may relate to future operating results, existing and expected competition, financing and refinancing sources and availability, and plans related to acquisitions or other future expansion activities and capital expenditures. Forward-looking statements involve a number of risks and uncertainties that may significantly affect the company's liquidity and results in the future and, accordingly, actual results may differ materially from those expressed in any forward-looking statements. Such risks and uncertainties include, but are not limited to, those related to effects of competition, leverage and debt service, financing and refinancing efforts, litigation and governmental investigations, environmental laws and regulations, general economic conditions and changes in laws or regulations.
Media Contact: Sara Cronin
Phone: 713.475.7778
Investor Contact: Robert Whitlow
Phone: 713.627.7474


