Sun Co. plans to reconfigure its big Philadelphia refinery by yearend to improve efficiency and increase profits.
The main thrust of Sun's plan is to complete the integration of two South Philadelphia plants, next to each other, regarded as the Philadelphia refinery. The two plants currently are designated Point Breeze, rated at 130,000 b/cd, which Sun purchased from Atlantic Refining Co. in 1988, and Girard Point, rated at 177,000 b/d, acquired from Chevron Corp. in 1994.
Sun Senior Vice Pres. David E. Knoll said, "At present, we purchase and process different crude supplies for the two facilities. After reconfiguration, we will be processing low sulfur, sweet crude at both facilities."
Knoll heads Sun's U.S. northeast refining operations, one of the company's eight business units. The Northeast refining unit lost $37 million in 1995 and $28 million in first quarter 1996.
After the change
As a result of the switch to sweet crude feedstock at Philadelphia, Sun will exit the asphalt business in 1997 but continue to produce asphalt during this summer's road work season.
Redundant processing units and infrastructure in the Point Breeze and Girard Point plants are to be closed or mothballed.
The changes will take place in fourth quarter 1996, with Sun taking a writedown of about $50 million after tax in second quarter 1997.
Meantime, total production of gasoline from Sun's Philadelphia and 175,000 b/cd Marcus Hook, Pa., refineries will remain at current levels, while production of heating oil, diesel fuel, jet fuel, and petrochemicals is expected to increase.
Sun is seeking ways to minimize the loss of jobs stemming from consolidation of the South Philadelphia plants. There could be a loss of as many as 50 jobs among salaried and support employees.
"To the extent possible, this reduction will be accomplished through attrition and transfers to other positions," Knoll said.
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