Business NEWS
Total Petrochemicals chooses PA as site for new ethane cracker
T
o t a l Pe t r o c h e m i c a l s h a s selected Port Arthur as the site for an estimated US$1.6 bln an ethane cracker, likely to start-up as early as 2019. Total, which had filed for state environmental permits and negotiated for a property tax abatement with county officials, previously said Port Arthur was one proposed location for the project. Total had been mulling two different expansion locations, one is Port Arthur and the other in Louisiana, to construct the estimated $1.6 billion project. Melyssa Rodgers, spokeswoman with Total, said the project will require thousands of workers during the engineering and construction phase and once the plant is operational, permanent positions will be created and that number has not been decided. Port Arthur Mayor Deloris “Bobbie” Prince was pleased to hear the Total had selected The Energy City for its expansion. “We are so blessed. We’ve been waiting to hear which side Total was going to choose,” Prince said, referring to Total’s process to select a site for the project. “We are thankful to Total for considering Port Arthur and having actually chosen the city of Port Arthur. Any additional expansion is a boost to our economy and we’re looking forward to that.” Jeff Branick, Jefferson County judge, was likewise pleased with the decision. “Obviously we’re overjoyed by the decision,” Branick said.
“This has the economic impact to create not only full time operational jobs but hundreds if not thousands of construction jobs and that money will turn over in our community and ultimately, for the economy to make us a healthier community.” Rodgers said Total decided on Port Arthur because the city is the best fit for what the company already has. “We intend to launch the FEED (Front End Engineering Design) and to select an engineering company in the coming months,” Rodgers said. “Our anticipated start-up is expected in end 2019.” Representatives of Total sought tax breaks in Jefferson County earlier in the year as well as with officials in Louisiana before choosing the site. Earlier in May the city of Port Arthur approved an expansion of
existing facility agreement with Total for a 10-year term. During the fiveyear construction period the company will receive a 75 percent discount on what the taxes would have been if the facility were located within Port Arthur city limits. During year six, the first year of operations, Total will receive a 90 percent discount;followed by 80% gradually making a 50 percent discount at the 10 th year. Total is eligible for additional discounts above those already granted if the company employs Port Arthur residents and utilizes Port Arthur vendors. Port Neches-Groves Independent School District approved an agreement in late April with Total that amounts to a $108 million tax benefit.
Gekoplast eyes higher sales and acquisitions
P
olish plastic panel maker Gekoplast is planning to acquire a local plastics industry player, according to Piotr Górowski, the company’s chief executive. In addition to this, the company aims to spend PLN 7.8m (€1.9m) this year with the aim of expanding its output capacity.
"Over the next year, year and a half we want to move to the main floor of the Warsaw Stock Exchange. We are open to acquisitions, we are carefully observing the market, but currently, we are not holding any
concrete talks,” Górowski. Gekoplast is planning to spend "several dozen millions of zloty” to purchase a local plastics industry player. In 2014, the producer reported revenues of PLN 76.3m (€18.4m).This year, Gekoplast aims to reach an output capacity of 15,800 tonnes. This would represent an incrase of about 16% compared with its current output capacity. "We forecast that, over the next four to five years, we will incrase our share in the European [plastic panel] market to 15%. Export sales represent 50% of our total sales,” Górowski said.
49• June 2015 • Plastics News