Sunoco Begins Idling Marcus Hook Refinery

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Researched by Industrial Info Resources (Sugar Land, Texas)--In September, Sunoco Incorporated (NYSE:SUN) (Philadelphia, Pennsylvania) announced that the company would exit the refining business. In a company press release from that time, Sunoco announced that it would "pursue all options to sell its refineries [in Philadelphia and Marcus Hook, Pennsylvania], but if a suitable transaction cannot be implemented, the company intends to idle the main processing units at the facilities in July 2012." However, employees at the Marcus Hook refinery were shocked to learn late last week that Sunoco would immediately begin the shutdown process at the facility.

The company cited deteriorating market conditions in its decision to shut down the refinery earlier than planned. Approximately 590 people are employed at the facility, and Sunoco said that about 100 of these employees will be transferred to other jobs within the company.

The refinery, which began operating in 1902, has experienced several unplanned shutdowns in the past few years, the most recent of which saw an 85,000-barrel-per-day crude unit and vacuum unit taken offline for almost two weeks for minor repairs in October.

Brazilian company Braskem SA (NYSE:BAK) (São Paulo, Brazil), which in 2010 bought Sunoco's adjacent polypropylene plant that receives feedstock from the refinery, has said in a company statement: "Braskem is going to pursue both short- and long-term options to continue to operate our Marcus Hook polypropylene plant, including the use of all legal actions and remedies available."

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