Growing Baytown and Beyond...
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Profiles 2012
industry
WHAT’S INSIDE EXXONMOBIL
Community leader since 1919, industry giant teams with Lee College
INDUSTRIAL PARKS Both Cedar Crossing, AmeriPort attracting big business to Baytown
CHEVRON PHILLIPS Expansion of company’s Cedar Bayou facility means more local jobs
A Special Supplement to The Baytown Sun
INDUSTRY
2 The Baytown Sun
Friday, March 9, 2012
ExxonMobil: community leader since 1919
■ Industry giant teams with Lee College to create a well-trained work force BY JANE HOWARD LEE jane.lee@baytownsun.com
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s the largest petroleum and petrochemical complex in the United States and part of this community since 1919, ExxonMobil’s modern-day footprint in Baytown includes the Baytown Refinery, Baytown Chemical Plant, Baytown Olefins Plant, Mont Belvieu Plastics Plant, Americas Area Engineering Office and Baytown Technology & Engineering Complex. Keeping those sites staffed with well-trained people is of primary importance to the company and a partnership with Baytown’s Lee College helps to do just that. Since Lee College’s inception in 1935, ExxonMobil has donated more than $3.4 million to the school, most of that between 1995 and 2010 alone. Approximately $2.9 million of those funds were given to the Lee College Foundation and have been used for scholarships and other forms of support for students and educational programs. Some of the company’s support for Lee College has been
aimed at helping the school turn out a qualified workforce well prepared for industrial jobs. “Lee College and ExxonMobil have grown up together,” said Loic Vivier, plant manager of ExxonMobil’s Baytown Olefins Plant. “Though the years we have developed a partnership that has equally served both our interests. At ExxonMobil, we believe that our contributions to Lee College are an investment. We are investing in the future of our company and community.” The partnership is described by ExxonMobil’s public affairs adviser Connie Tilton as a “triple win” situation – good for the company, good for Lee College and good for those who want the training that can help them get good jobs in the petrochemical industry. LC’s Debi Jordan, the director of workforce and economic development for the college, agrees. “ExxonMobil has always been a faithful financial contributor to Lee College and its programs,” she said recently and provided some examples. • Since 2008 ExxonMobil has contributed five $125,000 gifts to-
Contributed photo
ExxonMobil Process Technology Program Lee College interns converse with their ExxonMobil mentors on site at the ExxonMobil Baytown Olefins Plant. From left are Chris West, Andy Guthrie, Crystal Davis and Julio Alanis.
taling $625,000, which are intended to support the college’s technical programs. In recognition of that generosity, the college’s board of regents named a signature program the “ExxonMobil Process Technology Program.” That program seeks to prepare students for careers as process technicians, research technicians and laboratory technicians in the
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petrochemical industry. • ExxonMobil has donated equipment to Lee College through the years, with the most recent donation being for the LC machinist/millwright lab for the Industrial Systems Technician Program. Value of that latest equipment donation was approximately $100,000. • In 2010 ExxonMobil and Lee
College partnered to create an internship program for process technology students. To date, every one of the interns, who earn good pay, college hours and invaluable experience while in the highly competitive program, has been hired on by the company upon completion of that internship. Later this year, the SEE LEADER • PAGE 10
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Industrial parks: attracting big business ■ Cedar Crossing is a premier planned business, industrial park BY EMILY MACRANDER emily.macrander@baytownsun.com
■ AmeriPort welcomes new tenant, enjoys continued growth BY EMILY MACRANDER emily.macrander@baytownsun.com
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he 723-acre, rail-served, industrial development, AmeriPort, is located just east of Baytown and benefits from its close proximity to the Port of Houston. Since opening several years ago, AmeriPort has enjoyed uninterrupted success. Most recently, FlexSteel Pipes, a flexible pipe manufacturer, chose to house its new operations at AmeriPort. The project is expected to be completed and hold its grand opening in April. The FlexSteel project is planned to bring 30 employees from Houston to Chambers County and create 100 new jobs. To date, AmeriPort tenants have brought more than 500 jobs to the Baytown region, said Michael Plank, chairman of National Property Holdings and developer of AmeriPort Industrial Park. “We are very pleased with the momentum in the Baytown region,” Plank said. “We are also pleased with development of AmeriPort and currently enjoy significant demand for property within the development.” Other companies are also occupying the business park. One such is Mont Belvieubased Cryogenic Vessels Alternatives,
which specializes in low-temperature storage and transportation. CVA is owned by India-based Inox India Ltd. FlexSteel and CVA are both heavy fabrication and manufacturing rail-served, crane-served sites. Delta Companies Group opened a 207,000 square-foot complex in the fall of 2011. The New Orleans-based company provides transportation services for oil and gas petrochemical companies. Delta Companies Group is currently undergoing a 168,000 square-foot expansion with new tenant, Houston-based chemical company, Soltex. Delta and Soltex are both rail-served, tiltwall sites. Several attributes of the 723-acre master planned business park make it attractive to prospective tenants. It is served by two tier-one rail services: Union Pacific and BNSF. Because it is served by both rail services, the companies compete for lowest cost. Its internal rail yard is owned and operated by Rail Logix AmeriPort LLC. AmeriPort is easily accessible to both Interstate 10 and recently completed Grand Parkway. Also, the park is in close proximity to Barbours Cut and Bayport container terminals. The park is designated as a foreign trade zone and recently completed its heavy-haul corridor. AmeriPort was developed several years ago by Houston-based National Property Holding LP. Plank said his company, National Property Holdings, has developments throughout the state but that he enjoys working in Chambers County. “We’ve enjoyed working in Chambers County and with the city of Baytown,” Plank said. “We continue to find it a pro-business environment with a can-do attitude.”
Cedar Crossing Business Park is an industrial and business development located just outside of Baytown in a planned manufacturing and distribution environment. Cedar Crossing offers tenants a variety of spaces, from small, developed lots to large, customizable land parcels. The park is located in the nation’s fifth-ranked manufacturing region and is at the center of the US/Gulf of Mexico industrial complex. With the expansion of the Panama Canal, the region promises continued growth and industry. Cedar Crossing is located near the nation’s second largest port, the Houston
Ship Channel, which is lined with many major national and international industries. Its two barge terminals provide direct acces to the ship channel. Also, the portion Highway 225 running parallel to the ship channel is home to more than 100 manufacturing and storage facilities. The business park has access to many major highways, including Interstate 10 and Highways 225 and 146. A segment that will connect from Interstate 10 to Highway 146, 5.5 miles within Cedar Crossing. It is also near the expanded Grand Parkway. Cedar Crossing is served by Union PaSEE CROSSING • PAGE 5
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Friday, March 9, 2012
Chevron Phillips: expansion means jobs ■ Chemical company announces new ethane cracker at Cedar Bayou BY MIKE GUNNING mike.gunning@baytownsun.com
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Baytown Sun file photo
Chevron Phillips Chemical Company has announced construction is scheduled to begin on a world-scale ethane cracker at its Cedar Bayou facility in Baytown.
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hevron Phillips Chemical Company’s recent expansion announcement has created a buzz unlike anything that has hit Baytown in years. A March 2011 feasibility study on the viability of investing in a local facility has lead to a December announcement that Chevron Phillips will construct a world-scale ethane cracker at the Cedar Bayou facility in Baytown. And that means jobs. Lots of jobs. According to Melanie Samuelson, a communications specialist with Chevron Phillips, Baytown can expect to see about 10,000 construction and engineering jobs as the project gets under way. “We couldn’t be more excited about the regional and local job creation the USGC Petrochemical Project will bring to the area,” Samuelson said. The new facility will support an additional 400 permanent jobs when it comes online, expected to be in 2017. Preliminary work has already begun. “The company has executed agreements with Shaw Energy and Chemicals to design a 1.5 million metric tons a year (3.3 billion pounds a year) ethane cracker,” Samuelson said. “Ethane and ethylene derivatives are critical components in making plastics. Environmental Protection Agency greenhouse gas and Texas Commission on Environmental Quality air permit applications for the new cracker were filed.” Chevron Phillips isn’t stopping there. Samuelson said the Cedar Bayou Plant is also engaged in another important development for 2012 and beyond. “We’re also advancing plans for the construction of a world-scale 1-hexene plant at the Cedar Bayou plant, with anticipated startup in 2014,” Samuelson said. “The 1-hexene plant is capable of producing in excess of 200,000 tons (440 million pounds) per year and will likely create approximately 14 long-term direct jobs.” The Cedar Bayou Plant currently has
610 employees and is supported by approximately 450 to 500 nested contractors. Once expansion is complete, that number could double. Baytown mayor Stephen DonCarlos said he was excited – and concerned – about the news of the expansion. DonCarlos said he welcomes the expansion plans, but has questions about how the current infrastructure can handle the impact such a mammoth project will bring. He found he had a partner in Chevron Phillips. “The public needs to understand that Chevron absolutely understands the impact that all these workers will have on local traffic,” DonCarlos said. “They’re not unmindful of it.” He said Chevron Phillips is having a study conducted on further improvements to Sjolander Road north of Interstate 10 to help handle the construction jobs that will be created. The company is also considering plans to offer remote parking and bus workers in, he said. Another real concern of DonCarlos is whether Chevron Phillips can find the talent pool it needs to continue to grow as a company. Chevron Phillips is ahead of the curve on that one too. During the National Chemistry Week of October 16-22, 2011, Chevron Phillips volunteers led students in hands-on experiments and demonstrations in elementary schools to showcase chemistry in action. Last year, employees companywide taught more than 2,000 students how chemistry contributes to daily life and how the products and plastics made by Chevron Phillips can help improve the quality of life. Programs like this introduce students early on to what the company does, and offers them an insight into possible career paths later on. Chevron Phillips’ economic impact on the community goes beyond job creation. The company is also involved in the social fabric of Baytown and surrounding SEE JOBS • PAGE 11
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Friday, March 9, 2012
The Baytown Sun
5
Hi-tech, heavy industry work side by side
n Samson Controls known for work ethic, quality product STAFF REPORTS sunnews@baytownsun.com
Wherever there is a controlled flow of vapors, gases, liquids or chemicals, officials say, there also will be Samson Control Inc. representatives, working diligently and providing quality customer service. And that’s not just a local conceit. From Baytown to Ontario, Samson Controls Inc. — the United States subsidiary of Samson AG — is recognized for the internationally acclaimed quality of its product, according to officials. With what has been described as the most modern integrated automation systems, the company’s professional focus ranges from district hearing to air conditioning to globe, plus or butterfly control valve applications, according to officials. “Valves are built to order, tested and dispatched for delivery both nationally and internationally,” John Middleton, a company representative, relayed in a recent release. “Our in-house facilities enable us to respond quickly to customer requests and where possible dispatch valves the same day.” Samson Controls Inc is the name of two connected companies, one in Baytown and the other Ontario, which boast comprehensive inventories and assemble control valves and regulators for customers in the chemical, petrochemical,
pulp and paper, power, and food and beverage industries. The Baytown-based Samson Controls also offers products from the “Samson Group” — as Samson has formed affiliations with a series of companies also active in the field of valve engineering, but specializing in the production of different valves from those manufactured at Samson’s facilities. The company’s complete product line in instrumentation and controls offers the most modern integrated automation systems. This field of expertise extends through chemical plants and refineries, heating and air-conditioning technology (HVAC), power generation, pharmaceutical, and the food and beverage industry. “In addition to a very wide range of valves ... Samson also manufactures an extensive compliment of actuators, petitioners and instrumentation,” Middleton said in the release. The company is known for the “one stop shopping” it offers —- the full range of high quality and state-of-the-art control equipment in industrial processes. “Nationwide representation also ensures on site technical expertise and assistance in selecting the correct product for your application,” according to a separate release. http://www.samson-usa.com
CROSSING CONTINUED FROM PAGE 3
cific and Southern Pacific railroad networks. Within the park there are 56 miles of operating railroad to accomodate business rail transportation needs. Econo-Rail Corporation opperates a major rail car maintinenance facility at the park, regularly switching and repairing up ot 1,400 railcars at the property. In addition to tax abatements, further incentives for businesses to operate at Cedar Crossing include Baytown’s Enterprise Zone 1, which offers potential low interest loans, sales tax abatement and elimination of some fees.
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n JSW’s Texas Works occupy former U.S. Steel, other, sites STAFF REPORTS sunnews@baytownsun.com
Strategically located in Baytown, JSW’s Texas Works is ideally sited to serve the needs of the global energy and petrochemicals industry. With one of the widest mills in North America, the JSW plate division mill rolls hot-rolled plate widths up to 160 inches and thicknesses up to four inches. JSW services shipyards, oilfield fabricators, heavy equipment producers, machinery makers and many other end users and distributors who need high quality carbon plate. Applications range from oil and gas installations to storage tanks, offshore platforms and railcars, to dams, bridges and highway construction. Using quality pipe from JSW and other
suppliers, the corporation’s pipe division mill produces DSAW pipe to serve energy and petrochemical markets, including large diameter line pipe for onshore and offshore use, heavy-duty casing and piling. As affiliates of India’s Jindal Group, with more than 10 million tons of installed capacity worldwide, the JSW Texas Works plant benefits from the parent organization’s world-class engineering expertise and product know-how. JSW Group is one of the fastest growing business conglomerates with a strong presence in the core economic sector, growing from a steel rolling mill set up near Mumbai, India in 1982 to a multi-business conglomerate worth $9 billion in a short span of time. JSW is one of the lowest cost steel producers in the world.
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Friday, March 9, 2012
Strategically located on the Ship Channel ■ POH consists of Port of Houston Authority, 150-plus private industrial companies along 25-mile channel It’s nearly 2,000 miles from Colon, Panama to Houston – but the link between the two holds the potential to reshape the Baytown area. Colon is the city at the Gulf of Mexico end of the Panama Canal. As the expansion of the canal nears its completion, American ports along the Gulf of Mexico and even the east coast are struggling to position themselves to take advantage of an expected explosion of trade between the United States and Asia. While this was once thought of as largely one-way trade, importing Asian products to the United States, a booming Chinese economy is increasing the opportunities for exporting American goods westward.
Essentially, the Panama Canal is now a two-lane water highway, with two sets of locks for raising and lowering ships to accommodate the difference in sea level between the Pacific Ocean and the Gulf of Mexico. The trade route is so important it has led to a class of ship design known as “Panamax” – ships designed to exactly meet the size limitations of the Panama Canal and its locks. Simply put, a Panamax ship is the larges ship that can connect Houston to Asia. The Panama Canal is adding a third set of locks which will accommodate larger ships – much larger. With two years or so to go, shipping lines are already building
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BARBOURS CUT TERMINAL ships to the new specifications. Maximum length will grow from 965 feet to 1,200 feet. Maximum width will grow from 106 feet to 160 feet. Draft (depth below the waterline) will increase from nearly 40 feet to nearly 50 feet. All in all, the larger ships can carry more than twice the cargo in each trip. Shipping container capacity for ships is measured in TEUs – twenty-foot units. (In fact, most containers are 40 feet long – two TEUs). A current Panamax ship can carry 5,000 TEUs. A new Panamax ship will carry 12,000. The Port of Houston is continuing to build out the Bayport Container Terminal, which already has the larger cranes needed to handle the larger ships when they arrive. The port authority has recently approved the first stage of work to bring the larger cranes to Barbours Cut Terminal in La Porte as well. When the containers arrive, their first stop is usually a distribution center. While there are such centers being built in La
Porte and Pasadena, both cities are growing short on available undeveloped land – which puts developers’ sights across the Fred Hartman bridge to west Chambers County. Already home to mammoth distribution centers for Walmart and Home Depot, the Baytown Industrial District is ripe for adding new distribution facilities, as well and industries that depend on imports for supplies or exports for sales. Ricky Kunz, vice president of origination for the port authority, said, “We continue to work with the big box retailers to show them how Houston can assist them in serving their customer base in Texas and middle America. Those that have already established distribution centers here have seen the value of using Port Authority facilities and are moving increased volumes through the port.” In a recent statement, port officials estimated that container volume could grow by as much as 15 percent a year for the next several years, up to 4.5 million TEUs by 2030.
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Kirby, HMS: helping to keep channel moving
■ Kirby Inland Marine: nation’s largest domestic tank barge operator BY MIKE GUNNING mike.gunning@baytownsun.com
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oe Pyne, the chairman and chief executive officer of Kirby Inland Marine in Channelview is a pretty happy man these days. Kirby, recognized as the nation’s largest domestic tank barge operator, has just completed a record quarter. “Our record fourth quarter results were a reflection of continued favorable United States petrochemical production levels and a continued strong export market,” Pyne said, “all leading to high inland tank barge utilization levels and favorable term and spot contract pricing.” Kirby announced a fourth quarter earnings per share of $1.00 for the quarter ending on Dec. 31, 2011. That’s up from $.59 earned in the 2010 fourth quarter. Diversity of operations and the fourth quarter revenue allowed the company to ride the storm of cash reduction from capital investments after recent acquisitions and expansion. “K-Sea, our coastwise transportation company acquired on July 1, 2011, as anticipated, had its results impacted by a seasonal decline in refined products demand, winter weather operating conditions and the severance charge,” Pyne said. “Our record fourth quarter results also reflected record earnings from United, our land-based distributor and service
provider of engine and transmission related products and manufacturer of oilfield equipment, acquired on April 15, 2011.” United’s operating results reflect a continued strong market for the manufacture of oilfield equipment used in the hydraulic fracturing of shale formations, and the sale and service of transmissions and engines, Pyne said. Steve Holcomb, a spokesperson for Kirby, said the future looks bright for the company. “We have 4,200 employees, and a large domestic operation,” Holscomb said. “Our Channelview operations run 24-7, and include a training facility, operations, diesel and engine service. There’s a lot going on at that location.” Kirby Inland is a marine transporting company that moves bulk liquid products throughout the Mississippi River System, the Gulf Intracoastal Waterway, along all three United States coasts and in Alaska and Hawaii. Kirby transports petrochemicals, black oil products, refined petroleum products and agricultural chemicals by tank barge. Through the diesel engine services segment, Kirby provides after-market service for medium-speed and high-speed diesel engines and reduction gears used in marine and power generation applications. Kirby also distributes and services highSEE KIRBY • PAGE 11
■ Houston Marine Services supplies shallow, medium, deep draft vessels BY MIKE GUNNING mike.gunning@baytownsun.com
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ince 1977, Houston Marine Services has supplied marine fuels, lubricants and services to shallow, medium and deep draft vessels. The Houston-based company has a strong presence in Baytown, serving some of the largest international oil companies, barges and shipping lines from its South Lynchburg Road location. The primary marine terminal is strategically located on more than 50 acres at the midpoint of the Houston Ship Channel. The company also supplies bunker fuel from two ex-pipe bunker facilities in Texas City. Houston Marine Service is a diversified company that boasts a fleet of trucks, tank barges and boats necessary to effect the efficient transportation and delivery of marine fuels and lubricants. According to its website, Houston Marine Services Inc. is a quality and safety-focused provider of goods and services with qualified, experienced personnel, strategically positioned terminals and long-term relationships with customers and suppliers. Houston Marine Service provides a broad range of services to its customers in the Houston/Galveston, Texas and Lake Charles, Louisiana areas. Houston Marine Services offer prod-
uct delivery and sales of distillates sold via truck, inland barge and dockside at its Baytown Terminal. They also sell and deliver bunker fuels via inland barge in the Houston/Galveston area and via x-pipe at Teppco and Valero Texas City and Conoco Clifton Ridge at Lake Charles, Louisiana. Houston Marine Services is a leader in sales of lubricants - which it sells in bulk and drum quantities - potable water and blandstocks. They also have storage services, making them a well-sought vendor in the marine fuels and lubricant market. Houston Marine Services has expanded over the years to become an industry leader as a fuel, lubricants and service provider to the marine industry which includes vessels calling on the ports of Texas and offshore in the U.S. Gulf. Their service offerings include bunkers supply, inland barge transportation; lube oil manufacturing, offshore lubricant transportation and supply, waste oil and slops recovery and waste water treatment.
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■ Ship channel used since at least 1836 The Houston Ship Channel is part of the Port of Houston – one of the United States busiest seaports. The channel is the conduit for oceangoing vessels between the Houston-area docks and the Gulf of Mexico. The channel is a widened and deepened natural watercourse created by dredging the Buffalo Bayou and the Galveston Bay and has been used to move goods to the sea since at least 1836. Major products, such as petrochemicals and midwestern grain, are trans-
ported in bulk together with general cargo. The original watercourse for the channel, Buffalo Bayou, has its headwaters 30 miles to the west of Houston. Today the navigational head of the channel, the most upstream point to which general cargo ships can travel, is at Turning Basin in east Houston. The Ship Channel has numerous terminals and berthing locations along Buffalo SEE CHANNEL • PAGE 10
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Friday, March 9, 2012
EDF: city, business unite for development ■ Baytown-West Chambers County Economic Development Foundation recruits new businesses to area BY MARK FLEMING mark.fleming@baytownsun.com
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conomic development groups tend to work invisibly – they recruit new business for an area, help connect people who want to build with those with land to sell or lease, advise local leaders on what potential new employers want in a community, and a lot of equally unglamorous tasks. In 2011, the Baytown-West Chambers County Economic Development Foundation was uncharacteristically visible – and for the right reasons. Several years ago, the EDF added to its mission recruitment of new retail development – recruitment that has led to several businesses locating in Baytown, including the very visible arrival of Academy Sports + Outdoors in fall of 2011. It continues to work with several retail chains and shopping center developers who are interested in the area but not yet to the point of making a commitment to build. The EDF recruits business to the area by attending conventions and trade shows and by working with other economic development groups including the Governor’s Office of Economic Development and Tourism, the Bay Area Economic Partnership and the chambers of com-
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merce of both Baytown and West Chambers County. In 2011, the EDF responded to 132 requests for information from companies considering locating in the area. Of those, 16 progressed at least far enough for the companies involved to visit for on-site evaluation of potential locations. While the EDF releases very little information about prospects before companies make formal announcements, those 16 companies represented industries such as alternative energy, petrochemicals, textiles, logistics/distribution and light and heavy manufacturing. It also works with existing businesses to encourage them to stay in the area and make the investments necessary to maintain, improve or expand their facilities. While the massive expansion of Chevron Phillips has dominated the headlines, there have also been projects undertaken or announced at ExxonMobil, Conoco Phillips, Enterprise Products, FlexSteel, Ameriport and others. The EDF also operates an “Incubator Without Walls,” which provides support for small and new business through referrals to training opportunities offered through Lee College and other government and private business development groups. It also facilitates connections between
Baytown Sun file photo/Albert Villegas
The Baytown-West Chambers County Economic Development Foundation was instrumental in attracting the new Academy Sports + Outdoors store, which held its ribbon-cutting ceremony in fall of 2011.
small businesses and potential customers such as the Port of Houston Authority and with potential lenders. The EDF also provided support for the continued development of the regional mobility plan and the Baytown Housing Study, which seeks to develop a broader
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Baytown: part of nation’s 4th largest GDP ■ 2010 census shows growth
■ Bayer MaterialScience invests ■ Houston-Sugar $120 million in Baytown plant Land-Baytown GDP
As of the 2010 census, there were 71,802 people, 28,998 households, and 17,025 families residing in the city. The population density was 2,025.7 people per square mile. There were 26,203 housing units at an average density of 802.4 per square mile. The racial makeup of the city was 62.9 percent white, 15.5 percent African American, 0.6 percent Native American, 1.5 percent Asian, 14.42 percent from other races, and 2.7 percent from two or more races. Hispanic or Latino of any race were 43.4 percent of the population. There were 23,483 households out of which 39.2 percent had children under the age of 18 living with them, 52.9 percent were married couples living together, 14.2 percent had a female householder with no husband present, and 27.5 percent were non-families. Individuals made up 23.0 percent of all households and 8 percent had someone living alone who was 65 years of age or older. The average household size was 2.8 and the average family size was 3.32. In the city the population was spread out with 29.2 percent under the age of 18, 11.2 percent from 18 to 24, 29.4 percent from 25 to 44, 19.5 percent from 45 to 64, and 10.1 percent who were 65 years of age or older. The median age was 31 years. For every 100 females there were 94.4 males. For every 100 females age 18 and over, there were 91.4 males. The median income for a household in the city was $48,191, and the median income for a family was $45,346. Males had a median income of $38,039 versus $25,012 for females. The per capita income for the city was $17,641. About 13 percent of families and 15.5 percent of the population were below the poverty line, including 21.9 percent of those under age 18 and 9.8 percent of those age 65 or over. As of 2010 the property crime rate in the community is 4.6 percent compared to 5.45 percent for Harris County as a whole. The violent crime rate is 0.5 percent compared to 1.03 percent for Harris County.
Bayer MaterialScience announced last year plans to invest $120 million into its Baytown site. The Baytown site, which celebrated 40 years of manufacturing success this year, is the company’s largest manufacturing facility in the United States and is a keystone of Bayer MaterialScience’s global manufacturing strategy. “Our Baytown plant is a critical asset in the Bayer MaterialScience global portfolio,” said Dr. Tony Van Osselaer, member of the executive committee of Bayer MaterialScience and head of Industrial Operations. “It is a first-rate manufacturing facility and these significant investments are our commitment to keeping it fit for the future.” The planned $120 million investment includes: • Methylene diphenyl diisocyanate (MDI) – environmental upgrades, reliability improvements and minor debottlenecking. • Toluene diisocyanate (TDI) – improved process technology, environmental upgrades, and energy efficiency and reliability improvements that will increase productivity. • Polycarbonate – reliability upgrades and quality improvements for advanced optical applications. Additional investments are designed to improve the reliability of the infrastructure throughout the site. “These comprehensive upgrades will support the growth we are anticipating in the NAFTA region,” said Greg Babe, president and CEO of Bayer Corporation and Bayer MaterialScience LLC. “Reliability and safety are our priorities,” Rod Herrick, Baytown general plant manager, said. “A safe plant is a more reliable plant. In 2010, Bayer MaterialScience Baytown employees achieved their safest record in the 40year history of the plant. These investments are a tribute to them as well as to the ongoing performance of the site.” MDI and TDI are highly versatile chemicals used to produce polyurethanes used in flexible foam for the fur-
niture and automotive industries; rigid and spray foams for insulation in the construction industry; and coatings, adhesives, and sealants. Polycarbonate is used in innovative applications including automotive headlamp lenses, optical data storage (CDs and DVDs), medical devices and shatter-resistant optical lenses. Bayer MaterialScience LLC is one of the leading producers of polymers and high-performance plastics in North America and is part of the global Bayer MaterialScience business with approximately 14,400 employees at 30 production sites around the world and 2010 sales of 10.2 billion euros. The company manufactures high-tech
The economy of Houston-Sugar LandBaytown posted a real GDP growth rate of 0.5 percent. Houston-Sugar Land-Baytown GDP The economic output of the HoustonSugar Land-Baytown metropolitan statistical area was $403,202 million in 2008. That figure is based on current 2008 prices (nominal GDP), while the inflation adjusted GDP, or real GDP, based on prices in the year 2001, was $281,721 million, according to data from the U.S. Department of Commerce. Data for the year 2008 is the most current data for metropolitan GDP. Economic growth in nominal terms in Houston-Sugar Land-Baytown from 2007 to 2008 was 7.4 percent, while in real
SEE BAYER • PAGE 11
SEE GDP • PAGE 10
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10 The Baytown Sun LEADER
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program will expand to include the first electrical technology internships. “We have seen a 100 percent success rate with our Lee College intern program,” said Vivier. “The interns are wellprepared for the industry. They come to us ready and able to work. That is an example of the positive results of our partnership with Lee College.” • ExxonMobil has provided critical support for Lee College’s grant projects – working in an advisory capacity, providing letters of support and sometimes providing some match for the grant through financial support or an equipment donation. • The financial support isn’t restricted to strictly corporate gifts - quite a bit comes through the employees. The ExxonMobil Foundation offers a three-to-one match for ExxonMobil employees and annuitants who contribute to their alma maters and whose donations align with matching guidelines. Thus, a $2,500 gift from an ExxonMobil employee or annuitant translates to a $10,000 total donation to the college when the matching program is utilized. Lee College receives more funds through the program than any other two-year institution in the country. The company’s employees
donate more than money. ExxonMobil personnel volunteer their time to serve in an advisory capacity for the college’s programs, as well as at a leadership level for the President’s Community Leadership Advisory Committee, lending the value of their work and life experience to the benefit of the college and its students. They participate in job fairs; provide speakers for not only college classrooms but to address much younger students as well as giving tours of the ExxonMobil facilities. Crosby native Joe Whiddon, whose hefty job title after 34 years with ExxonMobil is Baytown Complex Mechanical Resource Coordinator, went to Lee College himself long ago to learn the skills to earn what he knew would be a good job in the petrochemical industry as a millwright. Whiddon, who oversees all of ExxonMobil’s crafts, serves on those advisory committees, has been instrumental in recognizing and helping to fulfill needs in the Lee College programs and “seeing that Lee College has all it needs to train the people we need.” At ExxonMobil, they call him a “project champion.” Whiddon says the role of two-year institutions like Lee College has changed over the years. “The focus was traditionally on preparing students for four-year schools,” he explained. “Now there is as
much or even more focus on preparing them for trades and to get jobs in industry.” Students who go through the Lee College industrial trades programs “can go to work anywhere in the industry,” Whiddon said. “I’d say the programs are second to none in this area.” Some of the trades taught at Lee College even have accelerated programs that can mean that after completing the program, one can do finish their apprenticeship in two years instead of three, Whiddon explained. For ExxonMobil, that means a savings on training costs and for the employee, it means moving into a higher paying job faster. “And that’s because of the quality of the education that they get at Lee College,” Whidden concluded. Whidden believes it is important to spread the word to younger people, stressing to children as young as middle school just how important it is to get a high school diploma. “I think sometimes they think that just because they aren’t likely to go to a fouryear college, they think they might as well drop out of school,” he said. “It is so important to convince them that if they finish high school, they can get into the trades and get a good job. Part of my job is to feed the pipeline, to convince kids to stay in school, then get into Lee College so they can come to work for us.”
Friday, March 9, 2012
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Bayou and Galveston Bay. The major public terminals include Turning Basin, Barbours Cut, and Bayport. There are many private docks as well, including the ExxonMobil Baytown Complex and the Deer Park Complex. The Houston Ship Channel has been periodically widened and deepened to accommodate ever-larger ships, and is currently 530 feet wide by 45 feet deep by 50 miles long. The islands in the ship channel are part of the ongoing widening and deepening project. The islands are formed from soil pulled up by dredging, and the salt marshes and bird islands are part of the Houston Port Authority's beneficial use and environmental mitigation responsibilities. The channel has five vehicular crossings. They are the Washburn Tunnel, the Sidney Sherman Bridge, the Sam Houston Ship Channel Bridge and pop-
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terms the growth was 0.5 percent. During the years of 2001-2008, Houston-Sugar Land-Baytown GDP grew at an annual rate of 8.3 percent in nominal terms and in real terms the economy grew by 2.9 percent. Houston-Sugar Land-Baytown economy rank The Houston-Sugar Land-Baytown economy is the 4th largest metro economy in the United States. Financial activities Financial activities led all sectors in
ularly known as the Beltway 8 Bridge; the Fred Hartman Bridge connecting La Porte and Baytown; and the Lynchburg Ferry. The proximity to Texas oilfields led to the establishment of numerous petrochemical refineries along the waterway, such as the ExxonMobil Baytown installation on the eastern bank of the San Jacinto River. While much of the Ship Channel is associated with heavy industry, two icons of Texas history are also located along its length. The USS Texas (BB-35) saw service during both World Wars, and is the oldest remaining example of a dreadnought-era battleship in existence. The nearby San Jacinto Monument commemorates the Battle of San Jacinto (1836) in which Texas won its independence from Mexico. The US Army's San Jacinto Ordnance Depot was located on the channel from 1941–1964. The channel was designated a National Civil Engineering Landmark by the American Society of Civil Engineers (ASCE) in 1987.
the metro economy. Financial activities contributed $44,738 million in 2008, that's 11.1 percent of the total economic output of Houston-Sugar Land-Baytown. Another major sector in the metro economy is trade - $41,573 million. Manufacturing Manufacturing is the largest among all industries in the Houston-Sugar LandBaytown economy. Manufacturing accounted for 14.6 percent and contributed $58,753 million to the metro economy. Other major industries include professional and technical services - $32,034 million and real estate - $28,588 million.
Distributions of employment sectors
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• Construction....20% • Retail trade....14% • Manufacturing....14% • Education/health/social services....12% • Leisure/hospitality...10% • Professional/business services...9% • Finance/insurance/real estate...6% • Agriculture/forestry/fishing/hunting/mining....4% • Public administration....4% • Transportation/warehousing/utilities...3% • Wholesale trade...2% • Information...1% • Other services...2%
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areas. “We are proud to be involved in a number of community programs,” Samuelson said. “Just to name a few, we’re involved in Rotary Club of Baytown, United Way, Lee College Foundation, Baytown Wetlands Center, Bay Area Homeless Services, Junior Achievement and American Cancer Society ‘Relay for Life’”. Educators are thankful for the company as well. Chevron Phillips has been involved with Partners in Education with Goose Creek CISD. “Through the Partners in Education program (Chevron Phillips) has supported Crockett Elementary for more than 20 years and Goose Creek Memorial High school for the past 2 years, both in Goose Creek CISD,” Samuelson said. Samuelson said that Cedar Bayou employees also participate
in the Junior Achievement program and donate hundreds of man-hours every year as volunteer teachers at Crockett Elementary, covering every classroom. Cedar Bayou also makes annual monetary contributions for school supplies, attendance and learning incentives, and in support of school events, she said. Chevron Phillips fosters good will among its employees, supporting efforts to participate in civic events. “Chevron Phillips has participated in Day of Caring for several years,” Samuelson said. “In 2011, Chevron Phillips employees worked together at the Church Women United Thrift Shop on Market Street. They were part of a group who repainted shelves and doors, boarded up a broken window, made roof and wall repairs and did tree clean-up at the site. About 15 employees and family members from the company worked there and at the Bay Area Homeless Services building.”
INDUSTRY About the only organizations that aren’t being kept busy by Chevron Phillips activities are the local EMS departments. And Samuelson said that’s not by accident. “We will continue to be on the forefront of safety,” Samuelson said. “In fact, Cedar Bayou has an 83 percent reduction reportable injury rate since 2000.” That comes from staying on the forefront of safety issues, and supporting a goal of zero accidents. “Cedar Bayou is an OSHA Voluntary Protection Program Star Site,” Samuelson said. “We’re proud to note that eight of the plant’s contractors are in the process of being recertified, certified or VPP Star designation for their exemplary health and safety programs. We received that Texas Chemical Council Sustained Excellence in Caring for Texas for 2008-2010, and we’re the International Rescue and Emergency Care Association National Champions for 2010-2011.”
PLASTICS PIONEERS When we invented plastic, we invented fun. It all started with a hula hoop, and Chevron Phillips Chemical's
products are now used in more than 70,000 consumer and industrial items. From sports equipment and medical packaging to milk jugs and car parts, we're Advancing Formulas for LifeTM.
The Baytown Sun
KIRBY CONTINUED FROM PAGE 7
speed diesel engines, transmissions, pumps, compression
BAYER CONTINUED FROM PAGE 9
polymer materials and develops innovative solutions for products used in many areas of daily life. The main segments served are the automotive, electrical and electronics, construction, med-
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products and manufactures oilfield service equipment, including hydraulic fracturing equipment, for land-based pressure pumping and oilfield service markets.
ical, and sports and leisure industries. Sustainability is central to Bayer MaterialScience LLC’s business and is based around the key areas of innovation, product stewardship, excellence in corporate management, social responsibility and respect for the environment
Development contact information • City of Baytown Planning and Development Department, 2401 Market St., Baytown, 77522; 281420-5394
• Baytown Chamber of Commerce, 1300 Rollingbrook, Suite 400, Baytown, 77521, 281422-8359
• Baytown-West Chambers County Economic Development Foundation, 1300 Rollingbrook, Suite 505, Baytown, 77521, 281-4202961
ExxonMobil Baytown supports our local Goose Creek CISD Robotics Club, as the students recently visited a working robotics labs at our Technology & Engineering Complex.
Technology is helping us to produce better products in a more efficient and environmentally-friendly manner. At ExxonMobil, technology is the lifeblood of our company. That’s why we believe it’s important to invest in state-of-the-art technology today and in the young scientists of tomorrow. www.exxonmobil.com/btarea