 |
|
|
|
|
| Announcement of closure of Keihin Refinery Ohgimachi Factory |
| 16/02/2010 |
|
Showa Shell Sekiyu K.K. (hereafter Showa Shell) has decided at its board meeting today to close down Toa Keihin Refinery Ohgimachi Factory (CDU capacity: 120,000 bbls/d), which is owned by Showa Shell and rented to its affiliated company Toa Oil Co., Ltd. (hereafter Toa Oil, President and Representative Director: Yutaka Yamamoto, Headquarters: 3-1 Mizue-cho, Kawasaki-ku, Kawasaki-shi, Kanagawa, Japan).
|
|
|
|
|
Reasons for the closure
Showa Shell has been renting its Ohgimachi Factory to Toa Oil based on the "fixed term rental agreement of the refining facilities" which came into effect in October 2000. Toa Oil has been operating Ohgimachi Factory together with its own Mizue Factory (CDU capacity: 65,000 bbls/d) as one integrated refinery. Showa Shell and Toa Oil had been studying the future operations of Ohgimachi Factory before the termination of the ten-year-contract in September 2010. The two companies have agreed that it is the best under the severe domestic and international oil market conditions to enhance Toa Oil's competitiveness by rationalization of the refining units.Timing of the closure
Ohgimachi Factory will terminate its oil refining operation by September 2011 when the next turnaround is scheduled and the Factory will be closed permanently thereafter. Toa Oil will continue to operate the Keihin Kawasaki Sea Berth (crude oil loading facility) and Ohgishima East Oil Terminal.Forecasts
Showa Shell and Toa Oil will continue the current crude oil processing contract by arranging a short-term rental agreement on Ohgimachi Factory after October 2010.
Even after the closure of Ohgimachi Factory, Toa Oil, as one of the Showa Shell Group refineries, will continue to play a significant role as the main oil products supplier in the Tokyo metropolitan area and eastern Japan, and there will be no changes to the capital ties between the two companies.
The financial impacts of the closure are cited in "Announcement of revisions in the forecasts of full year results 2009" and "Full year results for 2009" announced today.
(Reference)
| | Ohgimachi Factory Information |
| Address | 18-1 Ohgimachi, Kawasaki-ku, Kawasaki-shi, Kanagawa, Japan |
| Land Area | Approx. 227,000m2 |
| CDU Capacity | 120,000 bbls/d |
| Employees | Approx. 100 |
| Owner | Showa Shell Sekiyu K.K. |
|
|
|
| 2010 Press Release Index |
|
 To Page Top |
|
|
|
|
|
