industryindustryProfi les 2012

A Special Supplement to The Baytown Sun

Growing Baytownand Beyond...

WHAT’S INSIDEEXXONMOBILCommunity leader since1919, industry giantteams with Lee College

INDUSTRIALPARKSBoth Cedar Crossing,AmeriPort attracting bigbusiness to Baytown

CHEVRONPHILLIPSExpansion of company’sCedar Bayou facilitymeans more local jobs

Photo courtesy ofJanice Rubin

INDUSTRY Friday, March 9, 20122 The Baytown Sun

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BY JANE HOWARD LEEjane.lee@baytownsun.com

As the largest petro-leum and petrochem-ical complex in theUnited States and

part of this community since 1919,ExxonMobil’s modern-day foot-print in Baytown includes the Bay-town Refinery, Baytown ChemicalPlant, Baytown Olefins Plant,Mont Belvieu Plastics Plant,Americas Area Engineering Officeand Baytown Technology & Engi-neering Complex.

Keeping those sites staffed withwell-trained people is of primaryimportance to the company and apartnership with Baytown’s LeeCollege helps to do just that.

Since Lee College’s inception in1935, ExxonMobil has donatedmore than $3.4 million to theschool, most of that between 1995and 2010 alone. Approximately$2.9 million of those funds weregiven to the Lee College Founda-tion and have been used for schol-arships and other forms of supportfor students and educational pro-grams. Some of the company’ssupport for Lee College has been

aimed at helping the school turnout a qualified workforce well pre-pared for industrial jobs.

“Lee College and ExxonMobilhave grown up together,” said LoicVivier, plant manager of Exxon-Mobil’s Baytown Olefins Plant.“Though the years we have devel-oped a partnership that has equallyserved both our interests. AtExxonMobil, we believe that ourcontributions to Lee College are aninvestment. We are investing in thefuture of our company and com-munity.”

The partnership is described byExxonMobil’s public affairs ad-viser Connie Tilton as a “triplewin” situation – good for the com-pany, good for Lee College andgood for those who want the train-ing that can help them get goodjobs in the petrochemical industry.

LC’s Debi Jordan, the director ofworkforce and economic develop-ment for the college, agrees.

“ExxonMobil has always been afaithful financial contributor to LeeCollege and its programs,” she saidrecently and provided some exam-ples.

• Since 2008 ExxonMobil hascontributed five $125,000 gifts to-

Contributed photo

ExxonMobil Process Technology Program Lee College interns converse with their ExxonMobil mentors on siteat the ExxonMobil Baytown Olefins Plant. From left are Chris West, Andy Guthrie, Crystal Davis and Julio Alanis.

ExxonMobil: community leader since 1919

taling $625,000, which are in-tended to support the college’stechnical programs. In recognitionof that generosity, the college’sboard of regents named a signatureprogram the “ExxonMobil ProcessTechnology Program.”

That program seeks to preparestudents for careers as processtechnicians, research techniciansand laboratory technicians in the

petrochemical industry.• ExxonMobil has donated

equipment to Lee College throughthe years, with the most recent do-nation being for the LC machin-ist/millwright lab for the IndustrialSystems Technician Program.Value of that latest equipment do-nation was approximately$100,000.

• In 2010 ExxonMobil and Lee

College partnered to create an in-ternship program for process tech-nology students. To date, every oneof the interns, who earn good pay,college hours and invaluable expe-rience while in the highly compet-itive program, has been hired on bythe company upon completion ofthat internship. Later this year, the

SEE LEADER • PAGE 10

■ Industry giant teams with Lee College to createa well-trained work force

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BY EMILY MACRANDERemily.macrander@baytownsun.com

Cedar Crossing Business Park is an in-dustrial and business development lo-cated just outside of Baytown in aplanned manufacturing and distributionenvironment.

Cedar Crossing offers tenants a varietyof spaces, from small, developed lots tolarge, customizable land parcels.

The park is located in the nation’sfifth-ranked manufacturing region and isat the center of the US/Gulf of Mexicoindustrial complex.

With the expansion of the PanamaCanal, the region promises continuedgrowth and industry.

Cedar Crossing is located near the na-tion’s second largest port, the Houston

Ship Channel, which is lined with manymajor national and international indus-tries.

Its two barge terminals provide directacces to the ship channel.

Also, the portion Highway 225 run-ning parallel to the ship channel is hometo more than 100 manufacturing andstorage facilities.

The business park has access to manymajor highways, including Interstate 10and Highways 225 and 146.

A segment that will connect from In-terstate 10 to Highway 146, 5.5 mileswithin Cedar Crossing.

It is also near the expanded GrandParkway.

Cedar Crossing is served by Union Pa-

INDUSTRYFriday, March 9, 2012 The Baytown Sun 3

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SEE CROSSING • PAGE 5

BY EMILY MACRANDERemily.macrander@baytownsun.com

The 723-acre, rail-served, indus-trial development, AmeriPort,is located just east of Baytownand benefits from its close

proximity to the Port of Houston. Sinceopening several years ago, AmeriPort hasenjoyed uninterrupted success.

Most recently, FlexSteel Pipes, a flexiblepipe manufacturer, chose to house its newoperations at AmeriPort. The project is ex-pected to be completed and hold its grandopening in April.

The FlexSteel project is planned to bring30 employees from Houston to ChambersCounty and create 100 new jobs.

To date, AmeriPort tenants have broughtmore than 500 jobs to the Baytown region,said Michael Plank, chairman of NationalProperty Holdings and developer ofAmeriPort Industrial Park.

“We are very pleased with the momen-tum in the Baytown region,” Plank said.“We are also pleased with development ofAmeriPort and currently enjoy significantdemand for property within the develop-ment.”

Other companies are also occupying thebusiness park. One such is Mont Belvieu-based Cryogenic Vessels Alternatives,

Industrial parks: attracting big business■ Cedar Crossing is a premierplanned business, industrial park

■ AmeriPort welcomes newtenant, enjoys continued growth

which specializes in low-temperature stor-age and transportation. CVA is owned byIndia-based Inox India Ltd.

FlexSteel and CVA are both heavy fabri-cation and manufacturing rail-served,crane-served sites.

Delta Companies Group opened a207,000 square-foot complex in the fall of2011. The New Orleans-based companyprovides transportation services for oil andgas petrochemical companies.

Delta Companies Group is currently un-dergoing a 168,000 square-foot expansionwith new tenant, Houston-based chemicalcompany, Soltex.

Delta and Soltex are both rail-served, tilt-wall sites.

Several attributes of the 723-acre masterplanned business park make it attractive toprospective tenants.

It is served by two tier-one rail services:Union Pacific and BNSF. Because it isserved by both rail services, the companiescompete for lowest cost. Its internal railyard is owned and operated by Rail LogixAmeriPort LLC.

AmeriPort is easily accessible to both In-terstate 10 and recently completed GrandParkway. Also, the park is in close proxim-ity to Barbours Cut and Bayport containerterminals. The park is designated as a for-eign trade zone and recently completed itsheavy-haul corridor.

AmeriPort was developed several yearsago by Houston-based National PropertyHolding LP. Plank said his company, Na-tional Property Holdings, has developmentsthroughout the state but that he enjoysworking in Chambers County.

“We’ve enjoyed working in ChambersCounty and with the city of Baytown,” Planksaid. “We continue to find it a pro-businessenvironment with a can-do attitude.”

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Chevron Phillips: expansion means jobs

BY MIKE GUNNINGmike.gunning@baytownsun.com

Chevron Phillips ChemicalCompany’s recent expansionannouncement has created abuzz unlike anything that has

hit Baytown in years. A March 2011 fea-sibility study on the viability of investingin a local facility has lead to a Decemberannouncement that Chevron Phillips willconstruct a world-scale ethane cracker atthe Cedar Bayou facility in Baytown.

And that means jobs.Lots of jobs.According to Melanie Samuelson, a

communications specialist with ChevronPhillips, Baytown can expect to see about10,000 construction and engineering jobsas the project gets under way.

“We couldn’t be more excited about theregional and local job creation the USGCPetrochemical Project will bring to thearea,” Samuelson said.

The new facility will support an addi-tional 400 permanent jobs when it comesonline, expected to be in 2017.

Preliminary work has already begun.“The company has executed agree-

ments with Shaw Energy and Chemicalsto design a 1.5 million metric tons a year(3.3 billion pounds a year) ethanecracker,” Samuelson said. “Ethane andethylene derivatives are critical compo-nents in making plastics. EnvironmentalProtection Agency greenhouse gas andTexas Commission on EnvironmentalQuality air permit applications for thenew cracker were filed.”

Chevron Phillips isn’t stopping there.Samuelson said the Cedar Bayou Plant

is also engaged in another important de-velopment for 2012 and beyond.

“We’re also advancing plans for theconstruction of a world-scale 1-hexeneplant at the Cedar Bayou plant, with an-ticipated startup in 2014,” Samuelsonsaid. “The 1-hexene plant is capable ofproducing in excess of 200,000 tons (440million pounds) per year and will likelycreate approximately 14 long-term directjobs.”

The Cedar Bayou Plant currently has

610 employees and is supported by ap-proximately 450 to 500 nested contrac-tors. Once expansion is complete, thatnumber could double.

Baytown mayor Stephen DonCarlossaid he was excited – and concerned –about the news of the expansion.

DonCarlos said he welcomes the ex-pansion plans, but has questions abouthow the current infrastructure can handlethe impact such a mammoth project willbring.

He found he had a partner in ChevronPhillips.

“The public needs to understand thatChevron absolutely understands the im-pact that all these workers will have onlocal traffic,” DonCarlos said. “They’renot unmindful of it.”

He said Chevron Phillips is having astudy conducted on further improvementsto Sjolander Road north of Interstate 10to help handle the construction jobs thatwill be created. The company is also con-sidering plans to offer remote parking andbus workers in, he said.

Another real concern of DonCarlos iswhether Chevron Phillips can find the tal-ent pool it needs to continue to grow as acompany.

Chevron Phillips is ahead of the curveon that one too.

During the National Chemistry Weekof October 16-22, 2011, Chevron Phillipsvolunteers led students in hands-on ex-periments and demonstrations in elemen-tary schools to showcase chemistry inaction. Last year, employees company-wide taught more than 2,000 studentshow chemistry contributes to daily lifeand how the products and plastics madeby Chevron Phillips can help improve thequality of life.

Programs like this introduce studentsearly on to what the company does, andoffers them an insight into possible careerpaths later on.

Chevron Phillips’ economic impact onthe community goes beyond job creation.

The company is also involved in the so-cial fabric of Baytown and surrounding

■ Chemical company announcesnew ethane cracker at Cedar Bayou

Baytown Sun file photo

Chevron Phillips Chemical Company has announced construction is scheduled to beginon a world-scale ethane cracker at its Cedar Bayou facility in Baytown.

SEE JOBS • PAGE 11

INDUSTRYFriday, March 9, 2012 The Baytown Sun 5

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STAFF REPORTSsunnews@baytownsun.com

Strategically located in Baytown, JSW’sTexas Works is ideally sited to serve theneeds of the global energy and petrochem-icals industry.

With one of the widest mills in NorthAmerica, the JSW plate division mill rollshot-rolled plate widths up to 160 inchesand thicknesses up to four inches. JSWservices shipyards, oilfield fabricators,heavy equipment producers, machinerymakers and many other end users and dis-tributors who need high quality carbonplate. Applications range from oil and gasinstallations to storage tanks, offshore plat-forms and railcars, to dams, bridges andhighway construction.

Using quality pipe from JSW and other

suppliers, the corporation’s pipe divisionmill produces DSAW pipe to serve energyand petrochemical markets, including largediameter line pipe for onshore and offshoreuse, heavy-duty casing and piling.

As affiliates of India’s Jindal Group,with more than 10 million tons of installedcapacity worldwide, the JSW Texas Worksplant benefits from the parent organiza-tion’s world-class engineering expertiseand product know-how.

JSW Group is one of the fastest growingbusiness conglomerates with a strong pres-ence in the core economic sector, growingfrom a steel rolling mill set up near Mum-bai, India in 1982 to a multi-business con-glomerate worth $9 billion in a short spanof time.

JSW is one of the lowest cost steel pro-ducers in the world.

STAFF REPORTSsunnews@baytownsun.com

Wherever there is a controlled flow ofvapors, gases, liquids or chemicals, of-ficials say, there also will be SamsonControl Inc. representatives, workingdiligently and providing quality cus-tomer service.

And that’s not just a local conceit.From Baytown to Ontario, Samson Con-trols Inc. — the United States subsidiaryof Samson AG — is recognized for theinternationally acclaimed quality of itsproduct, according to officials.

With what has been described as themost modern integrated automation sys-tems, the company’s professional focusranges from district hearing to air con-ditioning to globe, plus or butterfly con-trol valve applications, according toofficials.

“Valves are built to order, tested anddispatched for delivery both nationallyand internationally,” John Middleton, acompany representative, relayed in a re-cent release. “Our in-house facilities en-able us to respond quickly to customerrequests and where possible dispatchvalves the same day.”

Samson Controls Inc is the name oftwo connected companies, one in Bay-town and the other Ontario, which boastcomprehensive inventories and assemblecontrol valves and regulators for cus-tomers in the chemical, petrochemical,

pulp and paper, power, and food andbeverage industries.

The Baytown-based Samson Controlsalso offers products from the “SamsonGroup” — as Samson has formed affili-ations with a series of companies alsoactive in the field of valve engineering,but specializing in the production of dif-ferent valves from those manufacturedat Samson’s facilities.

The company’s complete product linein instrumentation and controls offersthe most modern integrated automationsystems.

This field of expertise extends throughchemical plants and refineries, heatingand air-conditioning technology(HVAC), power generation, pharmaceu-tical, and the food and beverage indus-try.

“In addition to a very wide range ofvalves ... Samson also manufactures anextensive compliment of actuators, peti-tioners and instrumentation,”

Middleton said in the release.The company is known for the “one

stop shopping” it offers —- the fullrange of high quality and state-of-the-artcontrol equipment in industrialprocesses.

“Nationwide representation also en-sures on site technical expertise and as-sistance in selecting the correct productfor your application,” according to aseparate release.

http://www.samson-usa.com

Hi-tech, heavy industry work side by siden Samson Controls known for work ethic, quality product

n JSW’s Texas Works occupyformer U.S. Steel, other, sites

cific and Southern Pacific railroad networks. Within the park there are 56 miles of operating rail-

road to accomodate business rail transportation needs. Econo-Rail Corporation opperates a major rail car

maintinenance facility at the park, regularly switch-ing and repairing up ot 1,400 railcars at the property.

In addition to tax abatements, further incentives forbusinesses to operate at Cedar Crossing include Bay-town’s Enterprise Zone 1, which offers potential lowinterest loans, sales tax abatement and elimination ofsome fees.

CROSSINGCONTINUED FROM PAGE 3

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INDUSTRY Friday, March 9, 20126 The Baytown Sun

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BARBOURS CUT TERMINAL

Strategically located on the Ship Channel■ POH consists of Port of Houston Authority, 150-plus private industrialcompanies along 25-mile channel

It’s nearly 2,000 miles from Colon,Panama to Houston – but the link be-tween the two holds the potential to re-shape the Baytown area.

Colon is the city at the Gulf of Mexicoend of the Panama Canal. As the expan-sion of the canal nears its completion,American ports along the Gulf of Mexicoand even the east coast are struggling toposition themselves to take advantage ofan expected explosion of trade betweenthe United States and Asia. While thiswas once thought of as largely one-waytrade, importing Asian products to theUnited States, a booming Chinese econ-omy is increasing the opportunities forexporting American goods westward.

Essentially, the Panama Canal is now atwo-lane water highway, with two sets oflocks for raising and lowering ships to ac-commodate the difference in sea level be-tween the Pacific Ocean and the Gulf ofMexico.

The trade route is so important it hasled to a class of ship design known as“Panamax” – ships designed to exactlymeet the size limitations of the PanamaCanal and its locks. Simply put, a Pana-max ship is the larges ship that can con-nect Houston to Asia.

The Panama Canal is adding a third setof locks which will accommodate largerships – much larger. With two years or soto go, shipping lines are already building

ships to the new specifications.Maximum length will grow from 965

feet to 1,200 feet. Maximum width willgrow from 106 feet to 160 feet. Draft(depth below the waterline) will increasefrom nearly 40 feet to nearly 50 feet.

All in all, the larger ships can carrymore than twice the cargo in each trip.Shipping container capacity for ships ismeasured in TEUs – twenty-foot units.(In fact, most containers are 40 feet long– two TEUs). A current Panamax ship cancarry 5,000 TEUs. A new Panamax shipwill carry 12,000.

The Port of Houston is continuing tobuild out the Bayport Container Terminal,which already has the larger cranesneeded to handle the larger ships whenthey arrive. The port authority has re-cently approved the first stage of work tobring the larger cranes to Barbours CutTerminal in La Porte as well.

When the containers arrive, their firststop is usually a distribution center. Whilethere are such centers being built in La

Porte and Pasadena, both cities are grow-ing short on available undeveloped land– which puts developers’ sights across theFred Hartman bridge to west ChambersCounty. Already home to mammoth dis-tribution centers for Walmart and HomeDepot, the Baytown Industrial District isripe for adding new distribution facilities,as well and industries that depend on im-ports for supplies or exports for sales.

Ricky Kunz, vice president of origina-tion for the port authority, said, “We con-tinue to work with the big box retailers toshow them how Houston can assist themin serving their customer base in Texasand middle America. Those that have al-ready established distribution centershere have seen the value of using PortAuthority facilities and are moving in-creased volumes through the port.”

In a recent statement, port officials es-timated that container volume could growby as much as 15 percent a year for thenext several years, up to 4.5 millionTEUs by 2030.

INDUSTRYFriday, March 9, 2012 The Baytown Sun 7

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BY MIKE GUNNINGmike.gunning@baytownsun.com

Joe Pyne, the chairman and chiefexecutive officer of Kirby InlandMarine in Channelview is a prettyhappy man these days.

Kirby, recognized as the nation’slargest domestic tank barge operator, hasjust completed a record quarter.

“Our record fourth quarter results werea reflection of continued favorable UnitedStates petrochemical production levelsand a continued strong export market,”Pyne said, “all leading to high inland tankbarge utilization levels and favorableterm and spot contract pricing.”

Kirby announced a fourth quarter earn-ings per share of $1.00 for the quarterending on Dec. 31, 2011.

That’s up from $.59 earned in the 2010fourth quarter.

Diversity of operations and the fourthquarter revenue allowed the company toride the storm of cash reduction from cap-ital investments after recent acquisitionsand expansion.

“K-Sea, our coastwise transportationcompany acquired on July 1, 2011, as an-ticipated, had its results impacted by aseasonal decline in refined products de-mand, winter weather operating condi-tions and the severance charge,” Pynesaid.

“Our record fourth quarter results alsoreflected record earnings from United,our land-based distributor and service

provider of engine and transmission re-lated products and manufacturer of oil-field equipment, acquired on April 15,2011.”

United’s operating results reflect a con-tinued strong market for the manufactureof oilfield equipment used in the hy-draulic fracturing of shale formations,and the sale and service of transmissionsand engines, Pyne said.

Steve Holcomb, a spokesperson forKirby, said the future looks bright for thecompany.

“We have 4,200 employees, and a largedomestic operation,” Holscomb said.“Our Channelview operations run 24-7,and include a training facility, operations,diesel and engine service. There’s a lotgoing on at that location.”

Kirby Inland is a marine transportingcompany that moves bulk liquid productsthroughout the Mississippi River System,the Gulf Intracoastal Waterway, along allthree United States coasts and in Alaskaand Hawaii.

Kirby transports petrochemicals, blackoil products, refined petroleum productsand agricultural chemicals by tankbarge.

Through the diesel engine services seg-ment, Kirby provides after-market servicefor medium-speed and high-speed dieselengines and reduction gears used in ma-rine and power generation applications.Kirby also distributes and services high-

BY MIKE GUNNINGmike.gunning@baytownsun.com

Since 1977, Houston MarineServices has supplied marinefuels, lubricants and servicesto shallow, medium and deep

draft vessels. The Houston-based company has a

strong presence in Baytown, servingsome of the largest international oilcompanies, barges and shipping linesfrom its South Lynchburg Road loca-tion. The primary marine terminal isstrategically located on more than 50acres at the midpoint of the HoustonShip Channel.

The company also supplies bunkerfuel from two ex-pipe bunker facilitiesin Texas City.

Houston Marine Service is a diversi-fied company that boasts a fleet oftrucks, tank barges and boats necessaryto effect the efficient transportation anddelivery of marine fuels and lubricants.

According to its website, HoustonMarine Services Inc. is a quality andsafety-focused provider of goods andservices with qualified, experienced per-sonnel, strategically positioned termi-nals and long-term relationships withcustomers and suppliers.

Houston Marine Service provides abroad range of services to its customersin the Houston/Galveston, Texas andLake Charles, Louisiana areas.

Houston Marine Services offer prod-

uct delivery and sales of distillates soldvia truck, inland barge and dockside atits Baytown Terminal.

They also sell and deliver bunker fuelsvia inland barge in the Houston/Galve-ston area and via x-pipe at Teppco andValero Texas City and Conoco CliftonRidge at Lake Charles, Louisiana.

Houston Marine Services is a leaderin sales of lubricants - which it sells inbulk and drum quantities - potable waterand blandstocks.

They also have storage services, mak-ing them a well-sought vendor in themarine fuels and lubricant market.

Houston Marine Services has ex-panded over the years to become an in-dustry leader as a fuel, lubricants andservice provider to the marine industrywhich includes vessels calling on theports of Texas and offshore in the U.S.Gulf.

Their service offerings includebunkers supply, inland barge transporta-tion; lube oil manufacturing, offshorelubricant transportation and supply,waste oil and slops recovery and wastewater treatment.

Kirby, HMS: helping to keep channel moving■ Kirby Inland Marine: nation’slargest domestic tank barge operator

■ Houston Marine Services suppliesshallow, medium, deep draft vessels

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www.baytownsun.comSEE KIRBY • PAGE 11

The Houston Ship Channel is part ofthe Port of Houston – one of the UnitedStates busiest seaports.

The channel is the conduit for ocean-going vessels between the Houston-areadocks and the Gulf of Mexico.

The channel is a widened and deepenednatural watercourse created by dredgingthe Buffalo Bayou and the Galveston Bayand has been used to move goods to thesea since at least 1836.

Major products, such as petrochemi-cals and midwestern grain, are trans-

ported in bulk together with generalcargo.

The original watercourse for the chan-nel, Buffalo Bayou, has its headwaters 30miles to the west of Houston.

Today the navigational head of thechannel, the most upstream point towhich general cargo ships can travel, is atTurning Basin in east Houston.

The Ship Channel has numerous termi-nals and berthing locations along Buffalo

■ Ship channel used since at least 1836

SEE CHANNEL • PAGE 10

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EDF: city, business unite for development■ Baytown-West Chambers CountyEconomic Development Foundationrecruits new businesses to area

BY MARK FLEMINGmark.fleming@baytownsun.com

Economic development groupstend to work invisibly – theyrecruit new business for anarea, help connect people who

want to build with those with land to sellor lease, advise local leaders on what po-tential new employers want in a commu-nity, and a lot of equally unglamoroustasks.

In 2011, the Baytown-West ChambersCounty Economic Development Founda-tion was uncharacteristically visible – andfor the right reasons.

Several years ago, the EDF added to itsmission recruitment of new retail devel-opment – recruitment that has led to sev-eral businesses locating in Baytown,including the very visible arrival of Acad-emy Sports + Outdoors in fall of 2011.

It continues to work with several retailchains and shopping center developerswho are interested in the area but not yetto the point of making a commitment tobuild.

The EDF recruits business to the areaby attending conventions and trade showsand by working with other economic de-velopment groups including the Gover-nor’s Office of Economic Developmentand Tourism, the Bay Area EconomicPartnership and the chambers of com-

merce of both Baytown and West Cham-bers County.

In 2011, the EDF responded to 132 re-quests for information from companiesconsidering locating in the area.

Of those, 16 progressed at least farenough for the companies involved tovisit for on-site evaluation of potential lo-cations.

While the EDF releases very little in-formation about prospects before compa-nies make formal announcements, those16 companies represented industries suchas alternative energy, petrochemicals, tex-tiles, logistics/distribution and light andheavy manufacturing.

It also works with existing businessesto encourage them to stay in the area andmake the investments necessary to main-tain, improve or expand their facilities.

While the massive expansion ofChevron Phillips has dominated the head-lines, there have also been projects under-taken or announced at ExxonMobil,Conoco Phillips, Enterprise Products,FlexSteel, Ameriport and others.

The EDF also operates an “IncubatorWithout Walls,” which provides supportfor small and new business through refer-rals to training opportunities offeredthrough Lee College and other govern-ment and private business developmentgroups.

It also facilitates connections between

Baytown Sun file photo/Albert Villegas

The Baytown-West Chambers County Economic Development Foundation was instrumen-tal in attracting the new Academy Sports + Outdoors store, which held its ribbon-cuttingceremony in fall of 2011.

small businesses and potential customerssuch as the Port of Houston Authority andwith potential lenders.

The EDF also provided support for thecontinued development of the regionalmobility plan and the Baytown HousingStudy, which seeks to develop a broader

mix of housing options.It also works with regional groups to

deal with traffic issues that come with in-creased import/export development andindustrial growth, and to develop environ-mental strategies that protect both growthand quality of life.

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Bayer MaterialScience announcedlast year plans to invest $120 millioninto its Baytown site.

The Baytown site, which celebrated40 years of manufacturing success thisyear, is the company’s largest manufac-turing facility in the United States andis a keystone of Bayer Materi-alScience’s global manufacturing strat-egy.

“Our Baytown plant is a critical assetin the Bayer MaterialScience globalportfolio,” said Dr. Tony Van Osselaer,member of the executive committee ofBayer MaterialScience and head of In-dustrial Operations. “It is a first-ratemanufacturing facility and these signif-icant investments are our commitmentto keeping it fit for the future.”

The planned $120 million investmentincludes:

• Methylene diphenyl diisocyanate(MDI) – environmental upgrades, reli-ability improvements and minor debot-tlenecking.

• Toluene diisocyanate (TDI) – im-proved process technology, environ-mental upgrades, and energy efficiencyand reliability improvements that willincrease productivity.

• Polycarbonate – reliability upgradesand quality improvements for advancedoptical applications.

Additional investments are designedto improve the reliability of the infra-structure throughout the site.

“These comprehensive upgrades willsupport the growth we are anticipatingin the NAFTA region,” said Greg Babe,president and CEO of Bayer Corpora-tion and Bayer MaterialScience LLC.

“Reliability and safety are our prior-ities,” Rod Herrick, Baytown generalplant manager, said. “A safe plant is amore reliable plant. In 2010, Bayer Ma-terialScience Baytown employeesachieved their safest record in the 40-year history of the plant. These invest-ments are a tribute to them as well as tothe ongoing performance of the site.”

MDI and TDI are highly versatilechemicals used to produce polyure-thanes used in flexible foam for the fur-

niture and automotive industries; rigidand spray foams for insulation in theconstruction industry; and coatings, ad-hesives, and sealants.

Polycarbonate is used in innovativeapplications including automotiveheadlamp lenses, optical data storage(CDs and DVDs), medical devices andshatter-resistant optical lenses.

Bayer MaterialScience LLC is one ofthe leading producers of polymers andhigh-performance plastics in NorthAmerica and is part of the global BayerMaterialScience business with approx-imately 14,400 employees at 30 pro-duction sites around the world and2010 sales of 10.2 billion euros.

The company manufactures high-tech

INDUSTRYFriday, March 9, 2012 The Baytown Sun 9

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Baytown: part of nation’s 4th largest GDP■ Bayer MaterialScience invests$120 million in Baytown plant

As of the 2010 census, there were 71,802people, 28,998 households, and 17,025families residing in the city.

The population density was 2,025.7 peo-ple per square mile.

There were 26,203 housing units at anaverage density of 802.4 per square mile.

The racial makeup of the city was 62.9percent white, 15.5 percent African Ameri-can, 0.6 percent Native American, 1.5 per-cent Asian, 14.42 percent from other races,and 2.7 percent from two or more races.

Hispanic or Latino of any race were 43.4percent of the population.

There were 23,483 households out ofwhich 39.2 percent had children under theage of 18 living with them, 52.9 percentwere married couples living together, 14.2percent had a female householder with nohusband present, and 27.5 percent werenon-families.

Individuals made up 23.0 percent of allhouseholds and 8 percent had someone liv-ing alone who was 65 years of age or older.

The average household size was 2.8 andthe average family size was 3.32.

In the city the population was spread outwith 29.2 percent under the age of 18, 11.2percent from 18 to 24, 29.4 percent from25 to 44, 19.5 percent from 45 to 64, and10.1 percent who were 65 years of age orolder.

The median age was 31 years. For every 100 females there were 94.4

males. For every 100 females age 18 andover, there were 91.4 males.

The median income for a household inthe city was $48,191, and the median in-come for a family was $45,346.

Males had a median income of $38,039versus $25,012 for females.

The per capita income for the city was$17,641.

About 13 percent of families and 15.5percent of the population were below thepoverty line, including 21.9 percent of thoseunder age 18 and 9.8 percent of those age65 or over.

As of 2010 the property crime rate in thecommunity is 4.6 percent compared to 5.45percent for Harris County as a whole.

The violent crime rate is 0.5 percent com-pared to 1.03 percent for Harris County.

■ 2010 censusshows growth

SEE BAYER • PAGE 11

■ Houston-SugarLand-Baytown GDP

The economy of Houston-Sugar Land-Baytown posted a real GDP growth rateof 0.5 percent.Houston-Sugar Land-Baytown GDPThe economic output of the Houston-

Sugar Land-Baytown metropolitan statis-tical area was $403,202 million in 2008.

That figure is based on current 2008prices (nominal GDP), while the inflationadjusted GDP, or real GDP, based onprices in the year 2001, was $281,721million, according to data from the U.S.Department of Commerce.

Data for the year 2008 is the most cur-rent data for metropolitan GDP.

Economic growth in nominal terms inHouston-Sugar Land-Baytown from 2007to 2008 was 7.4 percent, while in real

SEE GDP • PAGE 10

INDUSTRY Friday, March 9, 201210 The Baytown Sun

R&E Cosmetology SchoolR&E Cosmetology School808 Park Street808 Park Street

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program will expand to in-clude the first electrical tech-nology internships.

“We have seen a 100 per-cent success rate with our LeeCollege intern program,” saidVivier. “The interns are well-prepared for the industry.They come to us ready andable to work. That is an exam-ple of the positive results ofour partnership with Lee Col-lege.”

• ExxonMobil has providedcritical support for Lee Col-lege’s grant projects – work-ing in an advisory capacity,providing letters of supportand sometimes providingsome match for the grantthrough financial support oran equipment donation.

• The financial support isn’trestricted to strictly corporategifts - quite a bit comesthrough the employees. TheExxonMobil Foundation of-fers a three-to-one match forExxonMobil employees andannuitants who contribute totheir alma maters and whosedonations align with matchingguidelines. Thus, a $2,500 giftfrom an ExxonMobil em-ployee or annuitant translatesto a $10,000 total donation tothe college when the matchingprogram is utilized. Lee Col-lege receives more fundsthrough the program than anyother two-year institution inthe country.

The company’s employees

donate more than money.ExxonMobil personnel volun-teer their time to serve in anadvisory capacity for the col-lege’s programs, as well as ata leadership level for the Pres-ident’s Community Leader-ship Advisory Committee,lending the value of theirwork and life experience tothe benefit of the college andits students.

They participate in job fairs;provide speakers for not onlycollege classrooms but to ad-dress much younger studentsas well as giving tours of theExxonMobil facilities.

Crosby native Joe Whid-don, whose hefty job title after34 years with ExxonMobil isBaytown Complex Mechani-cal Resource Coordinator,went to Lee College himselflong ago to learn the skills toearn what he knew would bea good job in the petrochemi-cal industry as a millwright.Whiddon, who oversees all ofExxonMobil’s crafts, serveson those advisory committees,has been instrumental in rec-ognizing and helping to fulfillneeds in the Lee College pro-grams and “seeing that LeeCollege has all it needs to trainthe people we need.” AtExxonMobil, they call him a“project champion.”

Whiddon says the role oftwo-year institutions like LeeCollege has changed over theyears.

“The focus was tradition-ally on preparing students forfour-year schools,” he ex-plained. “Now there is as

much or even more focus onpreparing them for trades andto get jobs in industry.”

Students who go throughthe Lee College industrialtrades programs “can go towork anywhere in the indus-try,” Whiddon said. “I’d saythe programs are second tonone in this area.”

Some of the trades taught atLee College even have accel-erated programs that canmean that after completing theprogram, one can do finishtheir apprenticeship in twoyears instead of three, Whid-don explained.

For ExxonMobil, thatmeans a savings on trainingcosts and for the employee, itmeans moving into a higherpaying job faster.

“And that’s because of thequality of the education thatthey get at Lee College,”Whidden concluded.

Whidden believes it is im-portant to spread the word toyounger people, stressing tochildren as young as middleschool just how important it isto get a high school diploma.

“I think sometimes theythink that just because theyaren’t likely to go to a four-year college, they think theymight as well drop out ofschool,” he said. “It is so im-portant to convince them thatif they finish high school, theycan get into the trades and geta good job. Part of my job is tofeed the pipeline, to convincekids to stay in school, then getinto Lee College so they cancome to work for us.”

LEADERCONTINUED FROM PAGE 2

• 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%

Distributions of employment sectors

terms the growth was 0.5 percent.During the years of 2001-2008, Hous-

ton-Sugar Land-Baytown GDP grew atan annual rate of 8.3 percent in nominalterms and in real terms the economygrew by 2.9 percent.

Houston-Sugar Land-Baytown economy rank

The Houston-Sugar Land-Baytowneconomy is the 4th largest metro econ-omy in the United States.

Financial activitiesFinancial activities led all sectors in

the metro economy. Financial activitiescontributed $44,738 million in 2008,that's 11.1 percent of the total economicoutput of Houston-Sugar Land-Bay-town.

Another major sector in the metroeconomy is trade - $41,573 million.

ManufacturingManufacturing is the largest among all

industries in the Houston-Sugar Land-Baytown economy.

Manufacturing accounted for 14.6percent and contributed $58,753 millionto the metro economy.

Other major industries include profes-sional and technical services - $32,034million and real estate - $28,588 million.

GDPCONTINUED FROM PAGE 9

Bayou and Galveston Bay. The majorpublic terminals include TurningBasin, Barbours Cut, and Bayport.

There are many private docks aswell, including the ExxonMobil Bay-town Complex and the Deer ParkComplex.

The Houston Ship Channel has beenperiodically widened and deepened toaccommodate ever-larger ships, and iscurrently 530 feet wide by 45 feet deepby 50 miles long.

The islands in the ship channel arepart of the ongoing widening and deep-ening project. The islands are formedfrom soil pulled up by dredging, andthe salt marshes and bird islands arepart of the Houston Port Authority'sbeneficial use and environmental miti-gation responsibilities.

The channel has five vehicular cross-ings. They are the Washburn Tunnel,the Sidney Sherman Bridge, the SamHouston Ship Channel Bridge and pop-

ularly known as the Beltway 8 Bridge;the Fred Hartman Bridge connectingLa Porte and Baytown; and the Lynch-burg Ferry.

The proximity to Texas oilfields ledto the establishment of numerouspetrochemical refineries along the wa-terway, such as the ExxonMobil Bay-town installation on the eastern bank ofthe San Jacinto River.

While much of the Ship Channel isassociated with heavy industry, twoicons of Texas history are also locatedalong its length.

The USS Texas (BB-35) saw serviceduring both World Wars, and is the old-est remaining example of a dread-nought-era battleship in existence.

The nearby San Jacinto Monumentcommemorates the Battle of San Jac-into (1836) in which Texas won its in-dependence from Mexico.

The US Army's San Jacinto Ord-nance Depot was located on the chan-nel from 1941–1964. The channel wasdesignated a National Civil Engineer-ing Landmark by the American Societyof Civil Engineers (ASCE) in 1987.

CHANNELCONTINUED FROM PAGE 7

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INDUSTRYFriday, March 9, 2012 The Baytown Sun 11

PLASTICS PIONEERSWhen 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.

areas.“We are proud to be involved

in a number of community pro-grams,” Samuelson said. “Just toname a few, we’re involved inRotary Club of Baytown, UnitedWay, Lee College Foundation,Baytown Wetlands Center, BayArea Homeless Services, JuniorAchievement and American Can-cer Society ‘Relay for Life’”.

Educators are thankful for thecompany as well.

Chevron Phillips has been in-volved with Partners in Educa-tion with Goose Creek CISD.

“Through the Partners in Edu-cation program (ChevronPhillips) has supported CrockettElementary for more than 20years and Goose Creek MemorialHigh school for the past 2 years,both in Goose Creek CISD,”Samuelson said.

Samuelson said that CedarBayou employees also participate

in the Junior Achievement pro-gram and donate hundreds ofman-hours every year as volun-teer teachers at Crockett Elemen-tary, covering every classroom.

Cedar Bayou also makes an-nual monetary contributions forschool supplies, attendance andlearning incentives, and in sup-port of school events, she said.

Chevron Phillips fosters goodwill among its employees, sup-porting efforts to participate incivic events.

“Chevron Phillips has partici-pated in Day of Caring for sev-eral years,” Samuelson said. “In2011, Chevron Phillips employ-ees worked together at theChurch Women United ThriftShop on Market Street. Theywere part of a group who re-painted shelves and doors,boarded up a broken window,made roof and wall repairs anddid tree clean-up at the site.About 15 employees and familymembers from the companyworked there and at the Bay AreaHomeless Services building.”

About the only organizationsthat aren’t being kept busy byChevron Phillips activities are thelocal EMS departments.

And Samuelson said that’s notby accident.

“We will continue to be on theforefront of safety,” Samuelsonsaid. “In fact, Cedar Bayou hasan 83 percent reduction re-portable injury rate since 2000.”

That comes from staying on theforefront of safety issues, andsupporting a goal of zero acci-dents.

“Cedar Bayou is an OSHAVoluntary Protection ProgramStar Site,” Samuelson said.“We’re proud to note that eight ofthe plant’s contractors are in theprocess of being recertified, cer-tified or VPP Star designation fortheir exemplary health and safetyprograms. We received that TexasChemical Council Sustained Ex-cellence in Caring for Texas for2008-2010, and we’re the Inter-national Rescue and EmergencyCare Association National Cham-pions for 2010-2011.”

JOBSCONTINUED FROM PAGE 4

speed diesel engines, transmis-sions, pumps, compression

products and manufactures oil-field service equipment, includ-ing hydraulic fracturingequipment, for land-based pres-sure pumping and oilfield serv-ice markets.

KIRBYCONTINUED FROM PAGE 7

polymer materials and developsinnovative solutions for productsused in many areas of daily life.

The main segments served arethe automotive, electrical andelectronics, construction, med-

ical, and sports and leisure indus-tries.

Sustainability is central toBayer MaterialScience LLC’sbusiness and is based around thekey areas of innovation, productstewardship, excellence in cor-porate management, social re-sponsibility and respect for theenvironment

BAYERCONTINUED FROM PAGE 9

Development contact information• City of Bay-

town Planningand DevelopmentDepartment, 2401Market St., Bay-town, 77522; 281-420-5394

• BaytownChamber ofCommerce, 1300Rollingbrook,Suite 400, Bay-town, 77521, 281-422-8359

• Baytown-WestChambers CountyEconomic Develop-ment Foundation,1300 Rollingbrook,Suite 505, Baytown,77521, 281-420-2961

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