Occidental Petroleum 2002 Annual Report Download - page 5

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temporarily idled plant, at December 31, 2002, was 3.3 million tons in the
United States (includes the 0.9 million-ton annual capacity of the OxyVinyls
partnership, owned 76 percent by Occidental and 24 percent by PolyOne
Corporation) and 0.3 million tons in Brazil and Chile. (Includes gross annual
capacity for a Brazilian corporation, 50-percent owned by Occidental).
Caustic soda is co-produced with chlorine and is used for pulp and paper
production, alumina production and other chemical manufacturing. OxyChem
produces caustic soda in Delaware, Louisiana, New York, Texas, Brazil and Chile.
Estimated annual capacity, including one temporarily idled plant, at December
31, 2002, was 3.5 million tons in the United States (includes the 1 million-ton
annual capacity of the OxyVinyls partnership) and 0.4 million tons in Brazil and
Chile. (Includes gross annual capacity for a Brazilian corporation, 50-percent
owned by Occidental).
Potassium chemicals are used in glass, fertilizer, cleaning products and
rubber. OxyChem produces potassium chemicals in Alabama and Delaware. Estimated
annual capacity at December 31, 2002, was 429,000 tons.
Ethylene dichloride (EDC), a chlorine derivative, is a raw material for
VCM. OxyChem produces EDC in Louisiana, Texas and Brazil. Estimated annual
capacity, including one temporarily idled plant, at December 31, 2002, was 3.0
billion pounds in the United States and 0.3 billion pounds in a Brazilian
corporation, 50-percent owned by Occidental.
VINYLS
The OxyVinyls partnership is OxyChem's principal producer of vinyls.
OxyChem's vinyls products include VCM and polyvinyl chloride (PVC) resins.
OxyChem produces VCM, which is used as a raw material for PVC, in Texas. At
December 31, 2002, estimated annual capacity was 6.1 billion pounds (includes
the 2.4 billion-pound annual capacity of OxyMar, which is 67-percent owned by
Occidental).
PVC resins are used in piping and electrical insulation, external
construction materials, flooring, medical and automotive products and packaging.
OxyChem produces PVC resins in Kentucky, New Jersey, Pennsylvania, Texas, and
Canada. At December 31, 2002, estimated annual capacity was 4.7 billion pounds.
PERFORMANCE CHEMICALS
OxyChem's performance chemicals include chlorinated isocyanurates
(estimated capacity of 131 million pounds produced in Illinois and Louisiana),
resorcinol (estimated capacity of 52 million pounds produced in Pennsylvania),
antimony oxide (estimated capacity of 33 million pounds produced in Texas),
mercaptans (estimated capacity of 18 million pounds produced in Texas) and
sodium silicates (estimated capacity of 753,000 tons produced in Georgia, Ohio,
Illinois, New Jersey, Texas and Alabama). Information regarding production
capacity reflects estimated annual capacity at December 31, 2002.
RAW MATERIALS
Nearly all raw materials used in OxyChem's operations are readily available
from a variety of sources. Most of OxyChem's key raw-materials purchases are
made through contractual relationships, rather than on the spot market. OxyChem
is not dependent on any single nonaffiliated supplier for a material amount of
its raw-material or energy requirements. Operations have not been curtailed as a
result of any supply interruptions.
4
PATENTS, TRADEMARKS AND PROCESSES
OxyChem's operations use a large number of patents, trademarks and
processes, some of which are proprietary and some of which are licensed. OxyChem
does not regard its business as being materially dependent on any single patent,
trademark or process.
SALES AND MARKETING
OxyChem's products are sold to industrial users or distributors located in
the United States, largely by its own sales force. OxyChem sells its products at
current market or market-related prices through short- and long-term sales
agreements.