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Trecora Resources Completes Sales Rack Expansion Project at South Hampton Resources

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Expanded Pipeline, Storage, and Truck and Railcar Loading Capacity Creates Efficiencies and Supports Current and Planned Growth

SUGAR LAND, Texas, Jan. 12, 2015 /PRNewswire/ -- Trecora Resources (NYSE: TREC) a leading provider of high purity specialty chemicals and waxes, today announced completion of the "Highway 92 Sales Rack Expansion Project" at its South Hampton Resources (SHR) 55-acre rail and truck terminal in Silsbee, Texas. 

Trecora Resources (TREC) owns and operates a petrochemical facility located in southeast Texas, just north of Beaumont, which specializes in high purity petrochemical solvents and other solvent type manufacturing. TREC also owns and operates a leading manufacturer of specialty polyethylene waxes and provider of custom processing services located in the heart of the Petrochemical complex in Pasadena, Texas. In addition, the Company is the original developer and a 35% owner of Al Masane Al Kobra Mining Co...

"This $7.2 million expansion project, which was completed in stages over the last two-and-a-half years, supports our growing export business and current toll customers, as well as identified growth projects, including the 60% increase in production capacity we will achieve as our D-Train expansion comes on line during 2015," said Nick Carter, President and CEO of Trecora Resources. "Trecora is recognized throughout the specialty chemical industry for its quality of service and customer responsiveness. The expansion and upgrades in Silsbee will further increase our advantage in the rapid delivery of custom products." 

The Highway 92 Project involved several key points in the transportation and storage process that improved efficiency and expanded production, including:

  • Construction of five new finished-product pipelines between the Highway 418 production facility and the Highway 92 terminal, which will reduce product transfer costs and allow for reallocation of trucking capacity assets to more profitable routes;
  • Installation of seven new pressure tanks at the Silsbee rail and truck terminal, which increases finished product storage capacity of core products by 750,000 gallons, representing a 4x increase over previous capacity. This investment enables SHR to smooth out production and sales imbalances, thus increasing production efficiencies and reducing production expenses;
  • Installation of a new five-bay truck and isocontainer loading facility that consolidates loading and unloading, thereby improving efficiency, holding fixed costs in check, and ensuring quality control. This investment doubles the previous capacity by allowing loading of two trucks per hour for each operator.
  • Installation of a second 10-railcar loading rack, with state-of-the-art loading arms and metering capabilities that help meet the increased demand for SHR products being shipped by railcar. The new loading rack improves product handling safety and loading efficiency, specifically a doubling of loading production to 20 railcars per day.
  • An investment by one of SHR's long term toll customers that called for the addition of three storage tanks with a total capacity of 1.2 million gallons, and the addition of truck and railcar blending capabilities. The toll customer is gaining production flexibility and improved response times to address its own customers' business needs.

About Trecora Resources (TREC)
TREC owns and operates a petrochemical facility located in southeast Texas, just north of Beaumont, which specializes in high purity petrochemical solvents and other solvent type manufacturing. TREC also owns and operates a leading manufacturer of specialty polyethylene waxes and provider of custom processing services located in the heart of the Petrochemical complex in Pasadena, Texas. In addition, the Company is the original developer and a 35% owner of Al Masane Al Kobra Mining Co., a Saudi Arabian joint stock company. 

Company Contact:
Nick Carter, President and Chief Executive Officer
(409) 385-8300
ncarter@trecora.com

Investor Relations Contact:
Glenn Garmont or Don Markley
The Piacente Group
212-481-2050
trecora@tpg-ir.com

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SOURCE Trecora Resources