Steam cracker is centerpiece of North American manufacturing strategy

The world's largest steam cracker, a $1 billion, 60/40 venture between BASF Corporation and Total Petrochemicals USA, Inc. (Houston, Texas), in Port Arthur, Texas, is BASF's largest single investment in North America. The billion-dollar project produces propylene and ethylene for BASF production plants in Freeport, Texas, and Geismar, Louisiana, as well as other sites throughout North America. Steam cracker end products are used in many types of solvents, coatings, plastics, fibers and consumer products.

The steam cracker has a number of features that places BASF among the lowest cost producers in the Gulf Coast region:

• Refinery integration
  - By-product utilization and reduced logistics
• Economies of scale
  - The world's largest steam cracker
• Feedstock optimization
  - Process flexibility allows variable feedstocks to be used
• Metathesis
  - Unique process to improve propylene production.

BASF FINA Petrochemicals Limited Partnership is a venture between BASF Corporation and Total Petrochemicals USA, Inc. Petrochemicals, Inc., a subsidiary of TotalFinaElf SA. The limited partnership, in which BASF holds a 60 percent share and Total Petrochemicals USA, Inc. holds a 40 percent share, was formed to manage the operations of the steam cracker project and related facilities.