Conoco Expands Into Japan
5 December 2000
Conoco Expands Into Japan; Announces First International Office for Carbon Fibers Development
HOUSTON--Dec. 5, 2000--Conoco announced today that it has opened an office in Tokyo to serve the carbon fiber market in Japan, marking the first international office for the company's new carbon fiber business.Conoco announced its entry into the carbon fiber market in January after developing a cost-effective, multi-patented, pitch-based manufacturing process for carbon fibers that allows scalability and mass production.
"Conoco Carbon Fibers is bringing an innovative new technology to the world with the potential to transform both our company and the current carbon fiber industry," said Archie Dunham, Conoco chairman, president and CEO.
Conoco Carbon Fibers have applications in batteries and heat conductive materials and can be used to make manufactured goods, automotive parts, roads, bridges, concrete panels and other construction materials stronger, lighter and more durable. In many cases, Conoco Carbon Fibers are capable of replacing steel and aluminum.
"Japan is the second largest global economy and currently manufactures 95 percent of the world's rechargeable lithium ion batteries. We're in Japan because we plan to be a major player in this market," Dunham said.
To date, Conoco has identified several Japanese companies to partner with to further develop its product and technical service offering. Several major battery manufacturers worldwide are evaluating Conoco's carbon fibers.
In addition to battery manufacturing, Japan is noted for its leading position in industries such as automotive, electronics and specialized infrastructure.
"Japan already leads the world in the application of carbon fibers in concrete and by becoming a part of this market, we expect to capitalize on the leadership the Japanese have displayed in using carbon fibers in modern materials," said Jim Nokes, Conoco executive vice president for refining, marketing, supply and transportation. "Already, we have hired several Japanese professionals to staff our office and we will be developing new business relationships in Japan to help speed our entry into these markets."
In other markets, the Conoco Carbon Fibers business unit is in discussion with potential automotive customers and their suppliers; resin manufacturers; and the building and construction industry regarding specific applications and use of carbon fiber.
The new carbon fibers business is based on a long history in the carbon upgrading industry where Conoco has set new standards for manufacturing petroleum coke, a highly specialized technology. Today, 40 percent of the world's delayed coking capacity is produced under Conoco licenses.
"With Conoco's world-class expertise in petroleum coking, project management and building, operating and maintaining large scalable businesses, we are confident our new carbon fiber venture will result in value adding solutions that meet the quality, consistency and reliability demanded by our customers," said Jim Nokes.
A new manufacturing facility based on Conoco's proprietary technology is under construction in Ponca City, Okla., on a 20-acre site adjacent to Conoco's existing refinery in Ponca City. When fully operational, the facility will be capable of producing eight million pounds-per-year of carbon fibers. Construction began in April and is 15 percent complete. The facility is expected to reach mechanical completion in late 2001 and subsequently start-up in 2002.