SunCoke Energy to Move Headquarters
9/24/2010 5:32:00 AM
PHILADELPHIA -SunCoke Energy, a subsidiary of Sunoco, Inc. (NYSE:SUN), intends to relocate its headquarters from Knoxville, Tenn. following its planned separation from Sunoco in 2011. Suburban Chicago is the preferred location for its new headquarters, with the final location decision contingent upon the successful completion of various negotiations and discussions at both the local and state levels.
The decision to relocate SunCoke's headquarters comes after careful study and review of the company's future operating needs in light of its growth prospects. The review determined that, by relocating to an international air travel hub, the company would be better positioned to service the international steelmakers that comprise its existing customer base, pursue growth on a global scale, and tap a broader pool of talent with industry-specific experience.
"All of the final candidate locations, including suburban Chicago, have the resources and infrastructure to fully support our next phase of growth. As we expand our operations overseas, it is important for us to have quick access to a large international airport with flights to every corner of the world. Our customers have global needs, and we must be able to provide worldwide service efficiently. Additionally, a move willposition us much closer to our operations and major customers," said Frederick A. Henderson, who will serve as chairman and chief executive officer of SunCoke upon its separation from Sunoco. "The decision to relocate the company is in no way a reflection on Knoxville, which has been a great city for SunCoke. We appreciate the city's support and partnership, but the demandsof our business require us to relocate."
SunCoke employs approximately 90people at its Knoxville headquarters and many will be offered the opportunity torelocate with the company. SunCoke expects to add 30 new jobs as part of the process of becoming an entity independent of Sunoco.
SunCoke Energy, which is currently part of Sunoco, uses its proven technology and proprietary processes to make high-quality metallurgical-grade coke for major steel manufacturers in the United States and Brazil. Coke is a principal raw material in steel making. SunCoke's plants are configured to efficiently produce electricity and/or high-grade industrial steam from the valuable heat recovered from its coking process. The company's facilities in the U.S. â located in Virginia,Indiana, Ohio and Illinois â have the capacity to manufacture approximately 3.67 million tons of metallurgical coke annually.
The company is also building a plant in Middletown, Ohio, that is slated to produce 550,000 tons of coke and 46 megawatts of electricity when fully operational in the second half of 2011. SunCoke is the operator of, and has an equity interest in, a 1.7 million tons-per-year-coke-making facility in VitÃ³ria, Brazil. The company has been mining the type of coals used in manufacturing coke for more than four decades. SunCoke recently announced plans to increase production from its metallurgical coal mines from approximately 1.25 million tons annually to approximately 1.75 million tons annually. For information: SunCoke
Sunocois a transportation fuel provider, with operations located primarily in the EastCoast and Midwest regions of the United States. The company operates more than 4,700 branded retail locations that market transportation fuels and convenience store merchandise in 23 states. This retail network is principally supplied by Sunoco-owned refineries with a combined crude oil processing capacity of 675,000barrels per day. Sunoco is also the General Partner and has a 31-percent interest in Sunoco Logistics Partners, L.P., a publicly traded master limited partnership which owns and operates 6,000 miles of refined product and crude oilpipelines and approximately 40 product terminals. Many of Sunoco Logistics' pipelines and terminals and storage facilities are integrated with Sunoco's retail network and refineries.