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Shell Chemical LP and SGF Chimie Announce Proposed Joint Venture
Montréal, November 22, 2001 - Shell Chemical LP, based in Houston,Texas, and the Société générale de financement du Québec (SGF), through its subsidiary SGF Chimie, confirmed they are negotiating the terms of a possible joint venture between an affiliate of Shell Chemical LP and SGF Chimie to build the first world‑scale polytrimethylene terephthalate (PTT) plant. The plant would use the proprietary technology developed by Shell and Zimmer AG. The facility would be located in the east end of Montreal on the Coastal Petrochemical site and could begin operation as early as Fall 2003.
Shell Chemical LP and SGF Chimie signed a non‑binding Letter of Intent in July to define the conditions of the joint venture. Negotiations are underway and, if successful, the transaction is expected to close around the end of 2001, pending management approval. The capacity will be 95,000 metric tons per year.
PTT is a thermoplastic polymer that can be spun into both fibers and yarns that are long‑wearing, inherently stain resistant and easy to clean. Shell’s trade name for PTT is CORTERRA Polymers*, and its products have applications in carpeting, textiles and apparel, engineering thermoplastics, nonwovens, films and mono‑filament. Shell Chemicals** brings to the venture brand recognition in the carpet and textile industries along with a key raw material for PTT‑PDO or 1,3‑propanediol. Shell Chemicals would also provide the technology to polymerize PDO to PTT, which it developed with Zimmer AG. SGF Chimie, through its partnership with Interquisa Canada LP, would provide a reliable and high‑quality supply of the other key ingredient of PTT‑PTA –or purified terephthalic acid.
"We are pleased to work with SGF Chimie on this project," said Fran Keeth, president of Shell Chemical LP. "It is an exciting opportunity since each company is a leader in its industry and contributes a vital component of PTT."
Jacinthe Dauphin, president and chief operating officer of SGF Chimie, said, "SGF Chimie has for many years pursued the development of a high value‑added petrochemical chain in the east end of Montreal. This project would complete the optimization of the PX, PTA, PTT chain, thus ensuring a strong foundation for the future development of that industry in Quebec."
A request to obtain an environmental authorization certificate has been registered with the Quebec Ministry of Environment. Although the project does not require BAPE (Bureau des audiences publiques en environnement) procedures, SGF and Shell intend to hold information sessions for the general public to provide details on the building and operation of the PTT plant. The project would involve the usual phases of site preparation work, construction and mechanical equipment set‑up.
The joint venture parties have secured the support of Investissement Quebec through the FAIRE program.
* CORTERRA is a trademark of the Royal Dutch/Shell Group of companies.
**The expression "Shell Chemicals" refers to the companies of the Royal Dutch/Shell Group which are engaged in chemical businesses. Each of the companies is an independent entity and has its own separate identity.
About Shell Chemical LP
Shell Chemical LP, based in Houston, Texas, is one of a number of companies of the Roya Dutch/Shell Group that are engaged in the manufacture or sales of chemicals. The key focus of Shell’s chemicals businesses is the production and delivery of major petrochemical building blocks and polyolefins to large industrial customers. (www.shell.com/chemicals)
About SGF Chimie
SGF Chimie is a subsidiary of the Société générale de financement du Québec whose mission is to carry out economic development projects meeting normal profitability requirements, in collaboration with business partners. Since it was restructured in 1998, SGF has generated investments of about $4.4 billion, creating over 19,400 direct and indirect jobs in the operating phase, not counting the thousands of jobs created during the construction phase. As of December 31, 2000, SGF’s consolidated assets totaled $2.3 billion. SGF has 53 international partners operating in Quebec (sgfqc.com).
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Information:
Sylvie Brousseau
Director of Communication
SGF
Kitty Borah, Carole Lieber
Marty Erickson
Shell Chemical LP
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