Conoco to Introduce New Petroleum-Based Carbon Fiber
THIS MATERIAL IS EMBARGOED FOR USE UNTIL AFTER 4:00 P.M. CST, THURSDAY, JAN. 6, 2000
HOUSTON (Jan. 6, 2000) - Conoco Inc. (NYSE:COC.A) (NYSE:COC.B) will soon introduce a revolutionary petroleum-based carbon fiber with unique applications in the electronics, composite materials, plastics, automotive, construction, transportation and other niche markets.
"We are excited about this new product and its great market potential," said Jim Nokes, Conoco executive vice president. "It is vastly different from existing carbon-based fibers and has unique properties that can enhance existing products and open the door to new markets."
Twelve years in development, the new carbon fiber will be manufactured using several of Conoco's many proprietary processes for carbon upgrading. Conoco's core competency in carbon upgrading has long made the company a global leader in producing high-value products from low-value petroleum feedstocks.
Nokes emphasized that significant economic advantages are realized from Conoco's patented manufacturing process: "By using low-valued refinery product streams instead of high-cost chemical feedstocks that are used to make most traditional carbon fibers, we are able to significantly reduce plant construction and manufacturing costs," Nokes said. "Our new carbon fiber can economically compete with alternative materials and offer customers opportunities to significantly reduce total project or product costs," he added.
Nokes said construction of an eight million pound-per-year manufacturing plant would begin in the second quarter of 2000. The $125 million plant will be built adjacent to the company's refinery in Ponca City, Oklahoma, and will begin commercial production in the second half of 2001. Nokes said Conoco's long-term presence in Ponca City and the existing Conoco infrastructure, including research and development units, were critical factors in the decision to locate the first carbon fiber plant in Ponca City.
Conoco is a major, integrated energy company based in Houston and active in 40 countries.
01/06/00
This release contains forward-looking statements about Conoco's operations, products and business plans. These statements are not guarantees of future performance, involve certain risks, uncertainties, and assumptions that are difficult to predict, and are based upon assumptions as to future events that may not prove accurate. Actual outcomes and results may differ materially from what is expressed herein. Among the factors that could cause such differences are crude oil and natural gas prices; differences in anticipated construction and manufacturing costs; differences in anticipated product margins; failure of the product to achieve anticipated market share; changes in governmental regulations; and potential disruption or interruption of the construction or operation of the company's production facilities due to accidents, technical difficulties or political events. Such matters are detailed in Conoco's publicly available filings with the Securities and Exchange Commission.