Solvay Polymers, Inc. and Chevron Phillips Chemical Company LP (Chevron Phillips Chemical) have selected a Chevron Phillips Chemical site in Texas as the location for their jointly owned 700 MM lb/yr high-density polyethylene (HDPE) slurry loop plant. Chevron Phillips Chemical and Solvay Polymers will each own 50 percent of the plant and will share its production of general-purpose blow molding HDPE resins. Each company will independently market its share of production. The plant, which is the largest of its kind in the world, will use Chevron Phillips Chemical technology.

Engineering for the facility is under way and start-up is slated for the fourth quarter of 2002. With the signing of the formal agreements, both companies have approved completion of the basic engineering and the obtaining of final engineering, procurement and construction bids. The companies intend to build a second shared facility at a Solvay Polymers site in the 2005-2007 time frame as market demand grows.

David Birney, President of Solvay Polymers, stated, "This new model alliance emphasizes Solvay Polymer’s commitment to innovative and cost effective solutions in the growing blow molding market."

Tim Taylor, Chevron Phillips Chemical Senior Vice President of Olefins and Polyolefins noted, "We believe that the loop slurry technology is the premier HDPE technology in the market, and our investment in this facility will enhance that position."

Solvay Polymers, Inc., a major U.S. producer of high-density polyethylene resins and polypropylene, is a wholly owned subsidiary of Solvay America, Inc., and a member of the Solvay Group, an international group of chemical and pharmaceuticals companies based in Brussels, Belgium. In 1999, Solvay Group companies’ sales amounted to approximately $7.9 billion, generated by four sectors of activity: chemicals, plastics, processing and pharmaceuticals. Polyolefins represent more than 50 percent of the plastics sector’s sales, which amounted to $2.7 billion.

Chevron Phillips Chemical Company LP is one of the world's top producers of olefins and polyolefins, and a leading supplier of aromatics, alpha olefins, styrenics and specialty chemicals. It is a subsidiary of Chevron Phillips Chemical Company LLC, which has assets of more than 6 billion and is owned equally by Chevron Corporation and Phillips Petroleum Company. The Company is headquartered in Houston.