Exxon Mobil Corporation (NYSE:XOM) has officially commenced production at two chemical units within its Baytown manufacturing facility located in Texas.
This development comes as part of the company’s substantial $2-billion expansion effort, aligning with its long-term strategy aimed at enhancing the value of products manufactured at its facilities situated along the U.S. Gulf Coast.
These newly commissioned units will significantly contribute to ExxonMobil’s ability to meet the growing demand for plastics and various other chemicals in the market. The company has set a target to produce 400,000 metric tons of branded polymers each year. These polymers are essential in the production of various goods, including automotive components, construction materials, reusable containers, hygiene and personal care products.
In addition to boosting polymer production, this expansion opens doors for ExxonMobil to enter the linear alphaolefins market. ExxonMobil anticipates an annual production capacity of 350,000 tons of olefins, which are used in a diverse range of applications, including high-performance engine and industrial oils, waxes, surfactant building materials, packaging polyethylene plastics, and various specialty chemicals.
The Baytown facility operated by ExxonMobil stands as one of the world’s largest and most advanced integrated refining and petrochemical complexes. Positioned 25 miles east of Houston, this expansive complex, sprawling across 3,400 acres along the Houston Ship Channel, encompasses a refinery, chemical plant, olefins plant, plastics plant, and a global technology center.
With this recent expansion of the Baytown chemical facility, ExxonMobil is strategically positioned to leverage the increased production coming from the Permian Basin. This, in turn, will enable the company to deliver higher-value products from its refining and chemical facilities located along the Gulf Coast.
In response to the growing consumer demand for advanced recycling solutions, Exxon’s Baytown facility is actively engaged in research and development aimed at finding innovative methods for plastic degradation. This expansion initiative at the Baytown complex is expected to generate approximately 200 job opportunities, further bolstering the reputation of this 104-year-old refining and chemicals hub.
In terms of price performance, ExxonMobil’s shares have exhibited strong performance over the past six months, outpacing the industry with a gain of 9.6% compared to the industry’s growth of 9%.
Featured Image: Megapixl © Jetcityimage
Author Stephanie Bédard-Châteauneuf 
