HOUSTON, Aug. 9, 2011 (GLOBE NEWSWIRE) -- TPC Group Inc. (Nasdaq:TPCG) today announced that its Board of Directors has approved funding for the next phase of engineering to produce on-purpose butadiene, targeting the restart of its second dehydrogenation asset at the Company's Houston plant, coupled with construction of a TPC Group OXO-DTM production unit. These assets would produce butadiene for the North American marketplace in order to meet growing market demand and address the structural shortage of supply caused by the shift from heavier to lighter cracker feedslates. This engineering phase is expected to be completed by the end of the first quarter 2012. Normal butane, a natural gas liquid whose production volumes continue to increase as a result of U.S. shale gas development, has been selected as the primary feedstock. Utilization of the TPC Group OXO-DTM technology allows highly efficient on-purpose butadiene production, and is expected to yield up to 600 million pounds per year of product with this project and to have the capability to expand as needed through additional phases as the market grows.
TPC Group Vice President of Strategic Initiatives, Michael Bloesch, said, "We have a 50 year history of commercial production of on-purpose butadiene and are well positioned to bring the needed additional butadiene to the marketplace. Customers have expressed a strong interest for this project, which provides long-term security of supply of a critical product to meet their growing business needs."
Mike McDonnell, President and Chief Executive Officer of the Company, said, "This project represents the next step in our strategic plan of using our well positioned assets and proven technologies to enhance our operating model and drive sustainable earnings growth."
About TPC Group
TPC Group Inc. is a leading producer of value-added products derived from niche petrochemical raw materials such as C4 hydrocarbons. The Company sells its products into a wide range of performance, specialty and intermediate markets, including synthetic rubber, fuels, lubricant additives, plastics and surfactants. Headquartered in Houston, Texas, and with an operating history of over 68 years, 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 website at http://www.tpcgrp.com.
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Forward-Looking Statements
Certain statements in this presentation may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include assumptions, expectations, predictions, intentions or beliefs about future events, particularly statements that may relate to market outlook and trends in our industry, availability of raw materials and inventories, future operating results, potential returns of capital to stockholders, plans related to strategic initiatives or future expansion activities, growth opportunities and capital expenditures. Although TPC Group Inc. (the "Company" or "TPC Group") believes that such statements are based on reasonable assumptions, no assurance can be given that such statements will prove to have been correct. A number of factors could cause actual results to vary materially from those expressed or implied in any forward-looking statements, including risks and uncertainties such as volatility in the petrochemicals industry, limitations on the Company's access to capital, the effects of competition, leverage and debt service, general economic conditions, litigation and governmental investigations, and extensive environmental, health and safety laws and regulations. More information about the risks and uncertainties relating to TPC Group and the forward-looking statements are found in the Company's SEC filings, including the Transition Report on Form 10-K, as amended, which are available free of charge on the SEC's website at http://www.sec.gov . TPC Group expressly disclaims any obligation to update any forward-looking statements contained in this press release to reflect events or circumstances that may arise after the date of this presentation, except as otherwise required by applicable law.