August 5, 2008
Texas Petrochemicals Announces Price Increase on Polyisobutylene Products Line
HOUSTON, Aug. 5 /PRNewswire-FirstCall/ -- Texas Petrochemicals Inc. (TPC), , a Houston based petrochemical company that provides a diverse range of quality products and services into performance, specialty and intermediate manufacturing markets worldwide, today announced a price increase on its polyisobutylene product line.
Effective September 1, 2008, TPC will raise polyisobutylene pricing by up to 12 percent, depending on grade, and make adjustments to off-list pricing as contracts allow. These changes are driven by the recent rapid increase in isobutane feedstock and natural gas costs.
"The sustained high prices for hydrocarbon based raw materials continue to adversely impact our business, requiring TPC to implement an increase at this time," said Vice President and General Manager for Performance Products Sandra Davis. "We are focused on maintaining a viable PIB business that can supply our customers over the long term. TPC plans to begin commissioning its new plant in August and expects to startup in the fourth quarter, effectively doubling the capacity once on-line."
TPC first entered the PIB market in May 2000 with the startup of its patented process to manufacture both highly reactive and enhanced PIB products. Since that time, the company has more than doubled its original capacity through multiple expansion projects.
TPC manufactures polyisobutylene at its Houston plant, making a complete line of high-quality polyisobutylene products ranging in molecular weight from 350 to 3500. The company also manufactures highly reactive polyisobutylene products ranging in molecular weight from 350 to 2300 which are valued for production of fuel and lubrication oil dispersant products. TPC sells its products worldwide directly to customers or through several break-bulk distributors.
Headquartered in Houston, Texas, Texas Petrochemicals Inc. is a premier chemical company with more than $2 billion in annual sales. Its products are sold to a wide range of performance, specialty and intermediate markets, including synthetic rubber, fuel additives, plastics and detergents. The Company has manufacturing facilities in the industrial corridor adjacent to the Houston Ship Channel, Port Neches and Baytown, Texas and operates a product terminal in Lake Charles, Louisiana. For more information, visit the Company's web site at http://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 strategic alternatives 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 Investor Contact: Robert Whitlow
Phone: 713.475.5243 Phone: 713.627.7474
Texas Petrochemicals Inc.
CONTACT: media, Sara Cronin, +1-713-475-5243, or investors, RobertWhitlow, +1-713-627-7474, both of Texas Petrochemicals Inc.
Web site: http://www.txpetrochem.com/