Conoco Inc. will realign and consolidate its U.S. lubricants operations.
The goals are to improve its competitive position in strategic markets and enhance customer service.
As part of the restructuring, operations at Conoco's new lube plants at Hartford, Ill., and Sulphur, La., will be expanded, while some operations at the 50 year old Ponca City, Okla., lube plant will be phased out during the next 8-10 months.
Richard Severance, Conoco lubricants business manager, said the shutdown and realignment of operations are driven by strategic and economic considerations.
"Our plants in Hartford and Sulphur are modern, state of the art facilities which have excess capacity," Severance said.
"In Ponca City, it would cost more than $100 million to modernize the facility and meet new safety and environmental standards that go into effect over the next few years. This investment, given the small size of that plant, simply is not economical.
"Our realignment will be put in place in a way that minimizes the impact on customers and employees. For example, during the transition period, Ponca City will continue to serve as a distribution facility for customers now drawing product from that location."
Severance said affected units include the lube compounding and packaging operations, the solvent treating plant in the Ponca City refinery, and bulk blending operations. The remaining portions of the Ponca City lube operations, including its role as a distribution site for Midcontinent area customers, will stay in operation pending further study.
As many as 150 full time Conoco employees at Ponca City could be affected by the reorganization.
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