Exxon Mobil Corporation XOM announced the commissioning of two chemical production units at its Baytown manufacturing facility in Texas.
The company’s $2-billion expansion is part of its long-term strategy to enhance the value of products produced at its facilities along the U.S. Gulf Coast.
The two units will enable ExxonMobil to meet the increasing demand for plastics and various other chemicals. The company plans to produce 400,000 metric tons of branded polymers per year, which are used to make automotive parts, construction materials, reusable containers, hygiene and personal care products.
Additionally, the project will create opportunities for ExxonMobil to venture into the linear alphaolefins market. XOM will have an annual production capacity of 350,000 tons of olefins, which find application in a wide range of uses, such as high-performance engine and industrial oils, waxes, building materials for surfactants, packaging polyethylene plastics, and various specialty chemicals.
ExxonMobil’s Baytown facility is one of the world’s largest and most technologically advanced integrated refining and petrochemical complexes. Situated 25 miles east of Houston, ExxonMobil's expansive complex spans 3,400 acres along the Houston Ship Channel. The facility includes a refinery, chemical plant, olefins plant, plastics plant and global technology center.
With the latest expansion of the Baytown chemical facility, ExxonMobil is well-positioned to capitalize on the heightened production from the Permian Basin, resulting in the delivery of higher-value products from its refining and chemical facilities on the Gulf Coast.
Amid increasing consumer demand for enhanced recycling solutions, Exxon's Baytown facility is actively researching new methods for plastic degradation. This expansion at the Baytown complex is expected to generate 200 jobs, further enhancing the 104-year-old refining and chemicals hub.
Shares of ExxonMobil have outperformed the industry in the past six months. The XOM stock has gained 9.6% compared with the industry’s 9% growth.
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Zacks Rank & Key Picks
ExxonMobil currently carries a Zack Rank #3 (Hold).
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