OxyChem To Convert Taft Membrane To KOH

Los Angeles - Occidental Chemical Corporation, a wholly-owned subsidiary of Occidental Petroleum Corporation, announced that it will convert its membrane cell chlor-alkali plant in Taft, Louisiana to produce potassium hydroxide (KOH). The company also announced it will close its Muscle Shoals, Alabama mercury cell chlor-alkali operation sometime in 2008 after this conversion is completed.

"OxyChem previously announced its intention to eliminate mercury cell production at Muscle Shoals," said Chuck Anderson, President of OxyChem. "We carefully studied the option of converting this plant from mercury cell to more modern technologies such as membrane. It was determined, however, that the economics do not justify the necessary capital investment for this relatively small chlor-alkali operation. Rapidly escalating rail transportation costs, rail service reliability and increasing environmental expenses related to mercury were also factors in this decision."

OxyChem remains committed to maintaining its leading position in the potassium hydroxide business. The conversion project at Taft is expected to allow OxyChem to supply KOH to all its customers without interruption and to help ensure the long term viability of this business. Plans are to continue to operate the Armand Products potassium carbonate joint venture at the Muscle Shoals site and the Mobile, Alabama membrane KOH plant for the foreseeable future. Upon completion of this project, OxyChem will no longer have any mercury cell chlor-alkali operations in the United States.

Muscle Shoals has a capacity of 154,000 tons annually of chlorine and 242,000 tons annually of potassium hydroxide. These basic chemicals are used to manufacture a wide range of products in the disinfection, soap and detergent, plastics, crop protection and pharmaceuticals industries.

The cessation of chlor-alkali production at Muscle Shoals will reduce OxyChem's annual chlor-alkali production capacity in the U.S. by 4 percent to 3.5 million tons and is not expected to impact OxyChem's ability to meet customers' requirements.

SOURCE: Occidental Chemical Corporation