-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, P42vSynl1lnY/egFq6O63WrbLboBMSHU8e2VhWTVogrTwuGcFCvtvkojP5ER2GhC 3MXFGRK4ckotAB7d07oxCA== 0000950129-99-000789.txt : 19990305 0000950129-99-000789.hdr.sgml : 19990305 ACCESSION NUMBER: 0000950129-99-000789 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19990212 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19990304 FILER: COMPANY DATA: COMPANY CONFORMED NAME: STERLING CHEMICALS HOLDINGS INC /TX/ CENTRAL INDEX KEY: 0000795662 STANDARD INDUSTRIAL CLASSIFICATION: INDUSTRIAL ORGANIC CHEMICALS [2860] IRS NUMBER: 760185186 STATE OF INCORPORATION: DE FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-10059 FILM NUMBER: 99556882 BUSINESS ADDRESS: STREET 1: 1200 SMITH ST, SUITE 1900 CITY: HOUSTON STATE: TX ZIP: 77002-4312 BUSINESS PHONE: 7136503700 MAIL ADDRESS: STREET 1: 1200 SMITH ST SUITE 1900 CITY: HOUSTON STATE: TX ZIP: 77002-4312 FORMER COMPANY: FORMER CONFORMED NAME: STERLING CHEMICALS INC /TX/ DATE OF NAME CHANGE: 19961218 FORMER COMPANY: FORMER CONFORMED NAME: STERLING CHEMICALS HOLDINGS INC DATE OF NAME CHANGE: 19960828 FORMER COMPANY: FORMER CONFORMED NAME: STERLING CHEMICALS INC DATE OF NAME CHANGE: 19920703 FILER: COMPANY DATA: COMPANY CONFORMED NAME: STERLING CHEMICAL INC CENTRAL INDEX KEY: 0001014669 STANDARD INDUSTRIAL CLASSIFICATION: INDUSTRIAL ORGANIC CHEMICALS [2860] IRS NUMBER: 760502785 STATE OF INCORPORATION: DE FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 333-04343-01 FILM NUMBER: 99556883 BUSINESS ADDRESS: STREET 1: 1200 SMITH STREET STREET 2: SUITE 1900 CITY: HOUSTON STATE: TX ZIP: 77002-4312 BUSINESS PHONE: 7136503700 MAIL ADDRESS: STREET 1: C/O STERLING GROUP INC STREET 2: EIGHT GREENWAY PLAZA, SUITE 702 CITY: HOUSTON STATE: TX ZIP: 77046 FORMER COMPANY: FORMER CONFORMED NAME: STX CHEMICALS CORP DATE OF NAME CHANGE: 19960516 8-K 1 STERLING CHEMICALS HOLDINGS, INC. - DATED 2/12/99 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 ------------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT 0F 1934 DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED), FEBRUARY 12, 1999 ------------- STERLING CHEMICALS HOLDINGS, INC. (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) DELAWARE 1-00059 76-0185186 (STATE OR OTHER JURISDICTION OF (COMMISSION FILE NUMBER) (I.R.S. EMPLOYER INCORPORATION OR ORGANIZATION) IDENTIFICATION NO.)
1200 SMITH STREET, SUITE 1900 HOUSTON, TEXAS 77002-4312 (713) 650-3700 (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES AND ZIP CODE) (713) 650-3700 (REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE) ------------- STERLING CHEMICALS, INC. (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) DELAWARE 333-04343-01 76-0502785 (STATE OF OTHER JURISDICTION OF (COMMISSION FILE NUMBER) (I.R.S. EMPLOYER INCORPORATION OR ORGANIZATION) IDENTIFICATION NO.)
1200 SMITH STREET, SUITE 1900 HOUSTON, TEXAS 77002-4312 (713) 650-3700 (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES AND ZIP CODE) --------------------- (713) 650-3700 (REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE) 2 ITEM 5. OTHER EVENTS The press releases issued by Sterling Chemicals Holdings, Inc. on February 12, 1999, February 25, 1999 and March 3, 1999 are filed as Exhibits 99.1, 99.2 and 99.3, respectively, to this Current Report on Form 8-K, and the contents of such Exhibits are incorporated herein by reference. ITEM 7. EXHIBITS The following exhibits are filed as part of this Form 8-K. Exhibit 99.1 -- Press Release dated February 12, 1999. Exhibit 99.2 -- Press Release dated February 25, 1999. Exhibit 99.3 -- Press Release dated March 3, 1999. 3 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned hereunto duly authorized. STERLING CHEMICALS HOLDINGS, INC. STERLING CHEMICALS, INC. (Registrants) Date: March 4, 1999 By: /s/ Gary M. Spitz ------------------------------------- Gary M. Spitz Vice President-Finance and Chief Financial Officer 4 INDEX TO EXHIBITS EXHIBIT NUMBER DESCRIPTION - ------ ----------- 99.1 Press Release dated February 12, 1999. 99.2 Press Release dated February 25, 1999. 99.3 Press Release dated March 3, 1999.
EX-99.1 2 PRESS RELEASE, DATED 02/12/99 1 EXHIBIT 99.1 STERLING CHEMICALS AND BP AMOCO ANNOUNCE ACETIC ACID EXPANSION Houston, Texas February 12, 1999 . . .Sterling Chemicals, Inc. and BP Amoco Plc. today announced plans to expand the world-scale acetic acid plant at Sterling's Texas City, Texas petrochemical facility. Sterling and BP Amoco expect to complete the project by the end of March 1999, which will increase Sterling's annual acetic acid production capacity by approximately 25% to about 1 billion pounds. The expansion project will include minor hardware modifications but will take advantage of the most recent technology and process developments afforded by BP Amoco's highly efficient state-of- the-art Cativa(TM) technology. Implementation of the Cativa(TM) technology coupled with advanced operating expertise is expected to upgrade Sterling's plant to one of the most cost competitive acetic acid facilities in the world. Sterling is a major U.S. producer of acetic acid, with about 18% of domestic capacity after the expansion. BP Amoco is the world's largest merchant marketer of acetic acid and markets all of Sterling's acetic acid production under a long-term agreement. BP Amoco is providing the Cativa(TM) technology and a portion of the capital for the $10 million expansion. About 70% of the world's manufacturing capacity for acetic acid uses BP technology. Peter De Leeuw, President and Chief Executive Officer of Sterling stated, "The expansion of Sterling's acetic acid facility demonstrates the strength of the Sterling/BP Amoco relationship in acetyls, which has been ongoing since 1986." Mr. De Leeuw went on to say "This new effort expresses our continuing commitment to the marketplace and provides additional evidence that Sterling is becoming a cost leader in the commodity chemical industry." Iain Macdonald, Chief Executive Acetyls Business Unit, BP Amoco, said, "BP Amoco is pleased to participate in this project which continues our commitment to the Texas City site and the relationship with Sterling Chemicals. The acetic acid unit will provide secure, cost advantaged product for our growing global acetic acid requirements. BP Amoco's worldwide production of acetic acid will shortly exceed 4 billion pounds per year." BP and Amoco recently completed the largest industrial merger in history. The merger combines Amoco's market strength in PTA, paraxylene, poly alpha-olefins and polybutene and BP's strength in acetic acid, acrylonitrile, oxygenated solvents, and polyethylene. 2 Based in Houston, Texas, Sterling Chemicals Holdings, Inc. is a holding company that, through its operating subsidiaries, manufactures petrochemicals, acrylic fibers, and pulp chemicals and provides large-scale chlorine dioxide generators to the pulp and paper industry. The Company has a petrochemical plant in Texas City, Texas; an acrylic fibers plant near Pensacola, Florida; and pulp chemical plants in five Canadian locations and one U.S. site. This news release includes "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. Although Sterling Chemicals believes that such statements are based on reasonable assumptions, it can give no assurance that its expectations will in fact occur. Important factors that could cause actual results to differ materially from those in the forward-looking statements include the timing and extent of changes in commodity prices and global economic conditions, federal and state regulatory developments, Sterling's high financial leverage, the availability of skilled personnel and operating hazards attendant to the industry, as well as the other risk factors discussed in Sterling's Annual Report on Form 10-K for fiscal 1998. EX-99.2 3 PRESS RELEASE, DATED 02/25/99 1 EXHIBIT 99.2 STERLING CHEMICALS AND MONSANTO ANNOUNCE CONSTRUCTION OF A NEW PLANT AT TEXAS CITY, TEXAS Houston, Texas February 25, 1999 . . .Sterling Chemicals, Inc. and Monsanto, Inc. today announced plans to construct a new disodium iminodiacetate ("DSIDA") plant at Sterling's Texas City, Texas petrochemical facility. The new plant will use hydrogen cyanide ("HCN"), a by-product from the acrylonitrile manufacturing process, as its primary feedstock. The plans call for the construction of a world-scale DSIDA plant, with production expected to begin in the second calendar quarter of 2000. The project will require a multi-million dollar investment, with Monsanto providing capital for the DSIDA plant and Sterling investing in projects associated with its acrylonitrile plant that will support the DSIDA project. DSIDA is an essential intermediate in the production of Monsanto's Roundup (R) glyphosate based herbicide. Roundup (R) is the world's top selling herbicide, with sales growing approximately 20 per cent per year for the last five years. Sterling also uses HCN for the production of sodium cyanide and tertiary butyl amine, or TBA. Sterling operates DuPont's Texas City sodium cyanide unit, and TBA is sold to Flexsys America L.P. Following the start-up of the new DSIDA plant, Sterling's Texas City acrylonitrile facility is expected to use all of its HCN by-product for chemical value. During the past year, Sterling has significantly reduced fixed costs through lower staffing levels and improved work practices at the Texas City facility. In addition, acrylonitrile yield has improved through better operations and the implementation of new catalyst technology. As well, the formation of the joint venture acrylonitrile export marketing company, ANEXCO LLC, with BP Chemicals, in April 1998, positioned Sterling to better serve the needs of its overseas customers, while reducing marketing and distribution costs. Paul Rostek, vice president acrylonitrile & co-products for Sterling commented, "For the past several years, our industry has gone through a significant petrochemical trough. Rather than waiting for markets to recover, Sterling has been focusing on cost reductions, improved work practices and efficiency improvements at Texas City. The construction of the DSIDA plant at Sterling's acrylonitrile facility is yet another major step in ensuring we will be one of the cost leaders in our industry well into the future." "We expect to operate one of the most cost competitive acrylonitrile units in the world, as a result of recent upgrades, projects and cost saving measures," stated Pete De Leeuw, president and CEO of Sterling. He went on to say, "We also anticipate creating 15 to 20 new Sterling jobs at the DSIDA plant when it goes on-line in 2000." 2 Marty Blaylock, vice president for manufacturing, explains, "This new DSIDA facility is an important element of Monsanto's long-range manufacturing plan for Roundup (R) herbicide and is a known cost-effective route for producing DSIDA. Farmers around the world are increasingly adopting conservation-tillage and no-till farming methods, which are more environmentally friendly ways of growing crops. These techniques reduce soil erosion, benefit wildlife and are more sustainable ways to farm. Roundup (R) herbicide is a key part of that trend and Monsanto is committed to meeting the increasing need." As a life sciences company, Monsanto is committed to finding solutions to the growing global needs for food and health by sharing common forms of science and technology among agriculture, nutrition and health. The company's 28,500 employees worldwide make and market high-value agricultural products, pharmaceuticals, and food ingredients. Based in Houston, Texas, Sterling Chemicals Holdings, Inc. is a holding company that, through its operating subsidiaries, manufactures petrochemicals, acrylic fibers, and pulp chemicals and provides large-scale chlorine dioxide generators to the pulp and paper industry. The Company has a petrochemical plant in Texas City, Texas; an acrylic fibers plant near Pensacola, Florida; and pulp chemical plants in five Canadian locations and one U.S. site. This news release includes "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. Although Sterling Chemicals believes that such statements are based on reasonable assumptions, it can give no assurance that its expectations will in fact occur. Important factors that could cause actual results to differ materially from those in the forward-looking statements include the timing and extent of changes in commodity prices and global economic conditions, federal and state regulatory developments, Sterling's high financial leverage, the availability of skilled personnel and operating hazards attendant to the industry, as well as the other risk factors discussed in Sterling's Annual Report on Form 10-K for fiscal 1998. EX-99.3 4 PRESS RELEASE, DATED 03/03/99 1 EXHIBIT 99.3 STERLING CHEMICALS ANNOUNCES STYRENE ENHANCEMENT PROJECT Houston, Texas, March 3, 1999 . . .Sterling Chemicals, Inc. is pleased to announce a capital project to upgrade its styrene monomer facility at Texas City, Texas. The phenylacetylene removal project ("PAR project") will reduce phenylacetylene ("PA") produced at Sterling's styrene monomer facility at Texas City, Texas, and will employ Raytheon/Fina technology and a Criterion catalyst. Sterling expects to invest approximately $7 to $8 million in the PAR project, with the allocation of funds coming from the current capital expenditure budget. During the current shutdown of the styrene unit, tie-ins for the PAR project will be made with availability of the low PA styrene product expected by December 31, 1999. Conventional styrene processes produce relatively high levels of PA as a byproduct of ethylbenzene dehydrogenation. PA is difficult to remove by conventional distillation; therefore, the PA removal process will be used to treat crude styrene before distillation. The Raytheon/Fina technology, coupled with the Criterion catalyst, has been demonstrated to selectively remove PA with minimum practical processing cost or loss of styrene monomer. Sterling expects the low PA segment of the styrene market to continue to grow as specialty polymer producers expand, build new facilities and develop new products. Stan Land, vice president - styrene commented, "Sterling is committed to investing in the overall quality of our business. Our current and future customers deserve the best possible product performance, quality and service excellence we can provide. The investment Sterling is making in phenyl acetylene removal enhances our product performance, bringing our styrene monomer to the highest standard of the industry." Peter De Leeuw, president and CEO, explained, "The PAR project represents Sterling's ongoing commitment to being a leading supplier to the styrene market. Our goal is to have the highest quality product along with exemplary services such that we are viewed as the premier competitor in the styrene monomer business." Based in Houston, Texas, Sterling Chemicals Holdings, Inc. is a holding company that, through its operating subsidiaries, manufactures petrochemicals, acrylic fibers, and pulp chemicals and provides large-scale chlorine dioxide generators to the pulp and paper industry. The Company has a petrochemical plant in Texas City, Texas; an acrylic fibers plant near Pensacola, Florida; and pulp chemical plants in five Canadian locations and one U.S. site. This news release includes "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. Although Sterling Chemicals believes that such statements 2 are based on reasonable assumptions, it can give no assurance that its expectations will in fact occur. Important factors that could cause actual results to differ materially from those in the forward-looking statements include the timing and extent of changes in commodity prices and global economic conditions, federal and state regulatory developments, Sterling's high financial leverage, the availability of skilled personnel and operating hazards attendant to the industry, as well as the other risk factors discussed in Sterling's Annual Report on Form 10-K for fiscal 1998.
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