Diamond Shamrock details plans for new splitter

Business Wire, Sept 12, 1995

SAN ANTONIO, Texas--(BUSINESS WIRE)--Sept. 12, 1995--Diamond Shamrock officials today announced the project to double the production capacity of polymer grade propylene with the construction of a second propylene splitter at the company's Mont Belvieu facilities is underway.

The foundation for the new 730 million pound per year unit is expected to be complete by mid-September, and fabrication of the columns for the unit will follow immediately. The engineering for the project is being done by Dresser Industries of Tulsa and the construction contractor is John Brown, Inc. of Houston.

The splitter is a joint venture project with Diamond Shamrock owning two-thirds and Fina Oil and Chemical owning one-third. When the project is completed in the fall of 1996, the splitter facility will be one of the largest in the country, according to Paul Vitale, Diamond Shamrock's NGLs and petrochemicals business manager.

"This is the next step in expanding our alliances with suppliers and customers," Vitale says. "This expansion, along with the ISO 9002 registration that we received earlier this summer, will allow us to continue to provide consistently high quality product to our customers." Besides the existing splitter, Diamond Shamrock is also a partner in a propylene export facility on the Houston Ship Channel.

The propylene splitter receives refinery grade propylene by pipeline, rail, and truck and upgrades it to commercial propane and polymer grade propylene, which is used as a feedstock in the production of polypropylene, oxoalcohols, propylene oxide, and other applications.

Diamond Shamrock, Inc. (NYSE: DRM), headquartered in San Antonio, is a leading refiner and marketer of petroleum products in the Southwest with a growing mix of related businesses. Diamond Shamrock, with annual sales of $2.6 billion, has two Texas refineries and markets gasoline through approximately 2,000 Diamond Shamrock branded locations, including 840 company operated Corner Stores that also sell a full range of convenience items.

CONTACT: Diamond Shamrock, San Antonio

Katherine Hughes, Public Relations, 210/641-8846

Mary Hartman, Investor Relations, 210/641-8840