New installation will increase value of byproduct stream and provide a reliable source of hydrogen for SHR production
SUGAR LAND, Texas, Dec. 1, 2015 /PRNewswire/ -- Trecora Resources (NYSE: TREC), a leading provider of high purity specialty hydrocarbons and waxes, today announced plans to construct a 4,000 barrels per day reformer unit at its South Hampton Resources (SHR) subsidiary in Silsbee, Texas. The new reformer unit is a follow-on investment to further support the recently completed D-Train expansion. The reformer utilizes advanced catalyst processes that were originally tested and proven for commercial application at SHR's Silsbee facility.
Simon Upfill-Brown, Trecora's President and Chief Executive Officer, commented, "The new reformer unit will produce a significantly higher value byproduct stream compared with our existing reformer. In addition, the new unit will provide a secure and reliable source of hydrogen for SHR's high purity pentane production, as well as for custom processing campaigns. With these benefits, we will be well positioned to meet increased long-term pentane demand, while also achieving a near-term payback on the project."
The capital investment for this project is estimated at $40 million and will be financed with existing sources of funds. The Company expects to receive all environmental permits in first quarter 2016 and complete construction in the first half of 2017.
About Trecora Resources (TREC)
TREC owns and operates a facility located in southeast Texas, just north of Beaumont, which specializes in high purity hydrocarbons and other petrochemical 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.
Statements in this press release that are not historical facts are forward looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based upon our belief, as well as, assumptions made by and information currently available to us. Because such statements are based upon expectations as to future economic performance and are not statements of fact, actual results may differ from those projected. These risks, as well as others, are discussed in greater detail in Trecora Resources' filings with the Securities and Exchange Commission, including Trecora Resources' Annual Report on Form 10-K for the year ended December 31, 2014, and the Company's subsequent Quarterly Reports on Form 10-Q. All forward-looking statements included in this press release are based upon information available to the Company as of the date of this press release.
Nick Carter, Chairman
Investor Relations Contact:
The Piacente Group
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SOURCE Trecora Resources