Repsol, S.A. Board of Directors has approved the project of the new production complex of Oxide Propylene/Styrene at Tarrragona. The estimated investment amounts approximately to 67.000 million pesetas and the start-up of the new plants will be in the first half of 1999.

The new Oxide Propylene plant (OP) will have a production capacity of 150.000 tons per year, with a predicted production capacity for the Styrene plant (SM) of 340.000 tons per year. Also, the project of the new complex includes derivative units - basically propylenics polyols and glycols - as well as a cogeneration plant of 85 MW.

With the construction of these new plants, Repsol will increase its Oxide Propylene (OP) production capacity at present 60.000 tons per year up to 210.000 tons per year. The manufacturing capacity of Styrene (SM) - at present 135.000 tons per year - will raise up to 475.000 tons per year.

The Oxide Propylene (OP) is a intermediate chemical product which uses the Propylene as raw material, and it is used basically for the polyols production (specialities which are the base in the polyuretanes business).

The Oxide Propylene business is characterized for its stability and profitability, with few producers and very high technologic barriers, and presents a high growth rate. These prospects, together with the reduced number of these plants in Southern Europe, gives Repsol a logistic advantage for the distribution to the emergent markets of the Mediterranean basin.

The Styrene (SM) it is a monomer "commodity" which is produced with benzene and etilene and used for the manufacturing of polystyrenes, rubbers, polyster and other products.

The business prospects allow to foreseen a high increase rate in the near future, giving good opportunities for the coproduced Styrene with Oxide Propylene.

The project engineering is very advanced, since Repsol decided some months ago to start the development of the detail engineering. The equipment acquisition and the starting of the first construction works will begin the in August.