TTA: TOTAL: Total’s Project for the Carling Platform’s Future
UK Regulatory Announcement
Total (Paris:FP) (LSE:TTA) (NYSE:TOT) intends to invest €160 million before
2016 to adapt its petrochemical platform in Carling, in the Lorraine region of
eastern France, and to restore its competitiveness.
Total plans indeed to develop new activities on the platform in the growing
markets for hydrocarbon resins* (Cray Valley) and for polymers*, while
shutting down the acutely loss-making steam cracker* in the second half of
In this way, Carling will become a leading European center in the hydrocarbon
resins and polymers market.
“Total has a project for the future of the Carling petrochemical platform and
the surrounding region,” explains Patrick Pouyanné, President Refining &
Chemicals and member of the Executive Committee of Total. “The European
petrochemicals market is facing continued overcapacity and growing
international competition. In such context, it is our industrial
responsibility to anticipate and adapt our production capacities to demand.
Our project for Carling will leverage the platform’s strengths, its industrial
capabilities and the expertise of its teams in order to develop a profitable
production facility. By making Carling the European center for the hydrocarbon
resin business and a leading European polymers plant as part of an extensive
investment plan, we are confirming our willingness to maintain sustainable
industrial activities in France while investing in promising markets. Total is
bringing a new ambition to Carling.”
The Carling platform will become the European center for Cray Valley
hydrocarbon resins. The platform will host:
*The European decision-making center.
*The European Research & Development activities.
*A new production unit for Ricon® and Krasol®* (C4 resins), designed to
capture the growth in demand for touch screen additives, high performance
tires and lubricants.
*The existing Norsolene®* (C9 resins) unit for adhesives will be
transformed to produce high-quality Waterwhite* transparent resins.
Carling’s value-added polymer capabilities will also be enhanced by
investments in several other projects designed to:
*Create a thermoplastics unit (polypropylene compound*) to meet new demand
from the automotive market for innovative plastics to replace steel and
thereby make vehicles lighter and more fuel-efficient.
*Invest in new capacity to strengthen the platform’s polystyrene*
leadership in Europe. Carling will be the priority polystyrene production
center for Total, which has almost 25% share of the European polystyrene
*Upgrade the polyethylene* production unit in order to improve its
capability to deliver advanced plastics to the medical and electric cable
Total intends to carry out this industrial redeployment plan without any
redundancies. The Group has made a firm commitment to provide each employee
concerned with a satisfactory solution tailored to his or her situation. Of
the 554 jobs at the Carling site, 344 will be maintained on the platform as
from 2016, including 110 created by the new production units.
Under French law, the project is subject to the process of notifying and
consulting employee representatives. By announcing its plans early, Total is
demonstrating its commitment to pursuing meaningful dialogue with employee
representative organizations with whom consultation has already been engaged
Total will of course respect all of the company’s contractual commitments to
its customers and will deploy the logistical investments required to ensure
the delivery of ethylene and propylene.
The Group is also committed to supporting the partner companies impacted by
the upgrade program, in particular by setting up a support fund.
“We have chosen to anticipate this announcement in order to give everyone time
to adjust to this industrial evolution. In this way, we’ll have time to ensure
that every employee finds a personalized solution. We are also committed to
supporting our partner companies impacted by the project. Naturally, the Group
will continue to fulfill all of its obligations to customers. In close
collaboration with regional and national authorities, Total reaffirms its
strong willingness to remain a partner in shaping the industrial future of the
Lorraine Region,”explains Patrick Pouyanné.
To increase the attractiveness of the Carling industrial platform Total
intends to offer shared services and provide support for new companies moving
into the area.
In this way, Total is reaffirming its responsibility to its host communities
and its desire to maintain a strong, sustainable industrial presence in the
*Cray Valley specializes in the production of liquid and solid hydrocarbon
resins for the adhesives, automotive and electronics markets. They are used in
touch-screen tablets, for example.
*Ricon® and Krasol® (C4 resins) are high value-added technological resins
used in the automotive industry. They help to improve fuel efficiency by
lowering the viscosimetric profile of engine oils. They also enhance tire
braking and handling. The second fast growing application for these resins is
touch screens for smartphones and tablets (transparent adhesives).
*Waterwhite resins are used in premium applications because they are
transparent and odorless. Examples include additives for tires or book binding
*Norsolene® (C9 resins) are commodity resins used in adhesives and coatings.
*Polystyrene (PS) is used as packaging for food, electronics, household
appliances and building insulation. Carling produces ultra transparent crystal
polystyrene and high-impact polystyrene, which incorporates rubber to make it
*Polypropylene compound (PPC) is a thermoplastic used to replace steel in
interior and exterior automotive components, so as to reduce weight and
improve fuel efficiency in premium automobiles.
*Polyethylene (PE) is used in automotive applications and for industrial and
consumer product packaging, as well as to make water and gas pipes. It is also
used in the medical market. Carling produces low density PE, primarily used in
the production of films, electrical wiring and coatings.
* A steam cracker “cracks” petroleum fractions, mainly naphtha, into simpler
molecules at very high temperatures, to obtain ethylene and propylene
(olefins) which, when processed, will produce polymers.
Total is one of the largest integrated oil and gas companies in the world,
with activities in more than 130countries. The Group is also a first rank
player in chemicals. Its 97,000employees put their expertise to work in every
part of the industry – exploration and production of oil and natural gas,
refining and marketing, new energies, trading, and chemicals. Total is working
to help satisfy the global demand for energy, both today and tomorrow.
Capital 5941838402,50 euros
542 051 180 R.C.S. Nanterre
Tel. : (33) 1 47 44 58 53
Fax : (33) 1 47 44 58 24
Robert HAMMOND (U.S.)
Robert PERKINS (U.S.)
Tel. : (1) 713-483-5070
Fax: (1) 713-483-5629
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