HOUSTON-Exxon Chemical Co. announced Jan. 3 it completed its previously announced purchase of the remainder of Paxon Polymer Co. L.P., a maker of high density polyethylene based in Baton Rouge, La. Exxon acquired half of the business in 1990 from AlliedSignal Inc., and announced Oct. 27 it intended to acquire the remainder of the business.
Exxon is based in Houston. AlliedSignal is based in Morristown, N.J.
Terms of the purchase were not disclosed.
Paxon has 500 workers who produce 1.5 billion pounds of HDPE a year at its plant in Baton Rouge, using a Phillips slurry-loop process. It has annual sales of $500 million.
Paxon's primary markets are dairy cooperatives and other food-packaging concerns. Its markets also include toys, oil and gas containers, industrial drums and automotive fuel tanks.
An expansion is under way to increase the plant's capacity to 1.6 billion pounds of HDPE a year by the end of 1996.
As previously reported, the acquisition extends Exxon's product line of HDPE.
Before 1990, Exxon did not have HDPE production capacity.
After acquiring a 50 percent interest in Paxon, Exxon built 396 million pounds of HDPE production capacity at its Mont Belvieu, Texas, facility, and built 638 million pounds of HDPE production capacity at its Sarnia, Ontario, facility.
HDPE production began at Mont Belvieu in 1992 and at Sarnia in 1993.
At Mont Belvieu, Exxon uses a Mitsui stir-slurry production process.
At Sarnia, Exxon uses a Unipol gas-phase production process. The Unipol process can swing to produce either linear low density PE or HDPE, but the Sarnia plant primarily manufactures HDPE.
Exxon also produces more than 800 million pounds of LLDPE and LDPE a year.
Paxon was founded in 1955 by W.R. Grace & Co., and AlliedSignal acquired it in 1966. When AlliedSignal sold Exxon the 50 percent interest in 1990, the companies formed the limited partnership.
The limited partnership had Exxon supplying ethylene feedstock and Allied-Signal operating the facility.