A coin toss determined whose name would go first when Chevron and Phillips Petroleum (now Phillips 66) formed 50-50 joint venture Chevron Phillips Chemical Company in 2000. Among the largest US petrochemical firms, the company produces ethylene, propylene, polyethylene, and polypropylene -- sometimes used as building blocks for the company's other products such as pipe. Chevron Phillips Chemical also produces aromatics such as benzene and styrene, specialty chemicals such as acetylene black (a form of carbon black), and mining chemicals. The company has several petrochemical joint ventures in the Middle East, including Saudi Chevron Phillips Company (50%) and Qatar Chemical Company (not quite 50%).
Chevron Phillips Chemical is a leading global producer of olefins and polyolefins and a major supplier of aromatics, alpha olefins, styrenics, specialty chemicals, as well as piping material and other proprietary plastics. It is the Western Hemisphere's largest producer of high-density polyethylene (HDPE) -- used in blow/injection molding, plastic bags and pipes, and films. Chevron Phillips Chemical also is near the top in styrene, ethylene, and aromatics production.
The company's chemical products are used in more than 70,000 consumer and industrial products.
Chevron Phillips Chemical is the US operating subsidiary of CPChem, which also includes foreign ventures, mainly those in Asia and the Middle East. Chevron Phillips Chemical accounts for most of its parent's revenues. Subsidiary Chevron Oronite produces fuel additives.
Chevron Phillips Chemical and joint venture partners operate more than 40 manufacturing and research centers, mainly in North America, but also in Asia, Europe, and the Middle East.
The company reported a 24% jump in revenues in 2011 thanks to increased industrial demand and increased availability of natural gas liquids as the result of the North American shale gas boom. Net income rose by 42% due higher revenues and lower natural gas commodity costs.
Chevron Phillips Chemical is growing its complex of chemical plants, taking advantage of the deep pockets of its multinational parents, increased demand for chemical products (especially in the fast-growing economies in Asia), and the abundance of chemical raw materials in the natural gas exploration and production sector in the North America.
In 2012 the company announced plans to build the world's largest 1-hexene plant capable of producing up to 551,000 lbs per year at its Cedar Bayou Chemical Complex in Baytown, Texas. The product 1-hexene is a component used in the manufacture of polyethylene, a plastic resin commonly converted into film, plastic pipe, milk jugs, detergent bottles, and food and beverage containers. The complex is anticipated to start operating in early 2014.
Chevron Phillips Chemical also began studying the feasibility in 2011 of building a world-scale ethane cracker and ethylene derivatives plant at one of its existing facilities in the US Gulf Coast region. The new facility would utilize the advantaged feed sources expected from development of shale gas reserves. The project is expected to come on-stream in 2017.
In 2011, to expand its portfolio in Europe, the company acquired a polyalphaolefin plant in Beringen, Belgium, from Neste Oil. The acquisition also adds to the company's existing production of polyalphaolefins (PAOs), which are used in high-performance lubricants. – less