Chevron Phillips Confirms Plans to Suspend PSPC Ops - Source Chevron Phillips - September 15,2011

Chevron Phillips Confirms Plans to Suspend PSPC Ops by Chevron Phillips Chemical Co. LP September 13, 2011 Chevron Phillips Chemical Company LP (Chevron Phillips Chemical) can confirm that an agreement has been reached with Sumika Polymers America Corporation, a wholly owned affiliate of Sumitomo Chemical Company, Ltd., for the permanent shutdown of the polypropylene assets jointly owned by the parties in Phillips Sumika Polypropylene Company (PSPC) and the orderly wind-up of PSPC operations. PSPC has announced that it intends to make the transition as smooth as possible and is working with its customers to assist during this period. All other operations at the Chevron Phillips Chemical Pasadena Plastics Complex are unaffected by the closing of the PSPC polypropylene plant at that facility. "The company remains focused on running our operation safely for our employees and the community in which we operate. We are assessing the impact to employees affected by this closing and will work to redeploy as many as possible in other parts of our organization," said Tim Taylor, chief operating officer for Chevron Phillips Chemical. Chevron Phillips Chemical Company LLC remains committed to the polypropylene business, and its network of marketing affiliates will market polypropylene produced by the Saudi Polymers Company (SPCo) joint venture scheduled to start up during the second half of 2011. SPCo is a limited liability company owned by Arabian Chevron Phillips Petrochemical Company Limited and National Petrochemical Company (Petrochem).