Date: Thu, 20 Nov 1997 20:37:34 GMT Server: Apache/1.2.4 Last-Modified: Mon, 13 Oct 1997 17:15:04 GMT ETag: "3460aa-383b-34425718" Content-Length: 14395 Accept-Ranges: bytes Connection: close Content-Type: text/html Millennium Chemicals Corporate Profile

Corporate Profile


99 Wood Avenue South Iselin, New Jersey 08830 (888)-MCH-NYSE

Millennium Chemicals (NYSE - MCH), a $3 billion sales company, consisting of Millennium Petrochemicals Inc., the largest U.S. manufacturer of polyethylene and a major producer of industrial chemicals in the U.S.; Millennium Inorganic Chemicals Inc., the third largest producer of titanium dioxide ("TiO2") in the world and the second largest producer in the U.S.; Millennium Specialty Chemicals Inc., the worlds largest producer of terpene based fragrance and flavor ingredients derived from turpentine; and a 26% ownership in Suburban Propane (NYSE - SPH), the third largest U.S. distributor of propane gas.

STRATEGY
Each chemical company has leading market positions:
Millennium will pursue profitable growth through internal investment and acquisitions in the international chemical sector.
Millennium Petrochemicals
#1 polyethylene in US
#2 vinyl acetate monomer and acetic acid in US
#2 Acetyls in the US
Our focus will combine aggressive growth in specialty and intermediate chemicals while enhancing already leading market positions in existing lines of business.
Millennium Inorganic Chemicals
#2 TiO2 in US
#3 TiO2 in the world
We will use Economic Value Added concepts to determine the allocation of financial and management resources. Cash Flow Return On Investment will be the primary measurement tool.
Millennium Specialty Chemicals
#1 terpene-based fragrance chemicals in the world
We will meaningfully link performance related pay to enhancing shareholder value both absolutely and relative to a peer group, and encourage substantial equity ownership by management.
Suburban Propane
(26% ownership)

#3 propane distribution in US




Value creation is optimized by maximizing long term cash flow.

Company Descriptions

Millennium Chemicals consists of Millennium Petrochemicals Inc., Millennium Inorganic Chemicals Inc.,Millennium Specialty Chemicals Inc. and a 26% ownership in Suburban Propane (NYSE - SPH), the third largest U.S. distributor of propane gas.

MILLENNIUM PETROCHEMICALS is the largest U.S. manufacturer of polyethylene and the largest producer of industrial ethyl alcohol, diethyl ether and polyolefin powders in the U.S. It is also the second largest U.S. producer of vinyl acetate monomer, acetic acid, color concentrates for plastics, specialty polymers for adhesives, sealants and coatings, wire and cable compounds and tie-layer for multi-layer packaging. It is also a major producer of polyproplene and methanol. In 1996, Millennium Petrochemicals used or sold approximately 4.5 billion pounds of ethylene, of which approximately 3.7 billion pounds were produced at Millennium Petrochemicals' three ethylene production facilities. Millennium Petrochemicals is headquartered in Cincinnati, OH with polyethylene plants in Morris, IL, La Porte, TX, Port Arthur, TX and Clinton, IA.
MILLENNIUM INORGANIC CHEMICALS is the third largest producer of titanium dioxide ("TiO2") in the world, the second largest producer of TiO2 in the U.S. It is also the world's second largest producer of TiO2 by the environmentally preferred chloride production process. This principal business accounts for approximately 96% of net sales, which is principally sold to the coatings, paper, plastics and elastomer industries. Millennium Inorganic Chemicals sold approximately 450,000 metric tons of TiO2 pigments in fiscal 1996. Millennium Inorganic Chemicals is headquartered in Baltimore, MD with plants located in Baltimore, MD; Ashtabula, OH; Stallingborough, England and Bunbury, Australia.
MILLENNIUM SPECIALTY CHEMICALS is one of the leading producers of terpene based fragrance ingredients derived from crude sulfate turpentine, a by-product of the kraft process of papermaking. Millennium Specialty Chemicals sells over 250 specialty organic chemicals based principally on terpene chemistry, which are used for fragrance, flavor, pharmaceutical and industrial applications. Approximately 80% of total sales are for aroma chemical use. About 60% of sales are export and are made by Millennium Specialty Chemicals sales force directly to manufacturers and through distributors and agents. Millennium Specialty Chemicals is headquartered in Jacksonville, FL and has plants in Brunswick, GA and Jacksonville, FL.

Fiscal Year Sept 30,
Operating Sales
1995
1996
Millennium Petrochemicals*
2,198
2,045
Millennium Inorganic Chemicals
860
881
Millennium Specialty Chemicals
103
114
TOTAL
3,161
3,040


*- Millennium Petrochemicals acquired on Sept. 30, 1993.



Fiscal Year Sept 30,
Operating Profit
1995
1996
Millennium Petrochemicals *
580
240
Millennium Inorganic Chemicals
177
83
Millennium Specialty Chemicals
31
35
TOTAL
789
358


*- Millennium Petrochemicals acquired on Sept. 30, 1993.



Fiscal Year Sept 30,
Capital Spending
1995
1996
Millennium Petrochemicals*
105
192
Millennium Inorganic Chemicals
124
81
Millennium Specialty Chemicals
17
12
TOTAL
246
285


*- Millennium Petrochemicals acquired on Sept. 30, 1993.


All three chemical companies are in the midst of
projects for expanding capacity:
Millennium PetrochemicalsEthylene capacity up 6% by 1998, and 17% by 2000. Polyethylene up 9% by 1997.
Millennium Inorganic Chemicals Current annual capacity of 473,000 metric tons is scheduled to increase by 9% by 1999.
Millennium Specialty Chemicals Dihydromyrcenol capacity quadrupled during 1995 and geraniol capacity increased by 20%.


TECHNOLOGY ADVANTAGES

Millennium Inorganic Chemicals Chloride process
Millennium Specialty Chemicals Terpene chemistry
Millennium Petrochemicals Ethylene cracker and licensed polyethylene and acetic acid technology.

Meet the Millennium Management Team

Upon the completion of the spin-off of Millennium Chemicals on October 1, the new management team consists of the following :

William M. Landuyt- Chairman & CEO. Bill joined Hanson Industries in June 1983 as Assistant Treasurer and became Controller in December 1983, VP of Finance in 1987 and VP and CFO in 1988. He was appointed Associate Director of Hanson PLC in 1990 and joined the Board of Hanson PLC as Finance Director in 1992. Bill was appointed President and Chief Executive Officer of Hanson Industries in June 1995.
John E. Lushefski- Sr. Vice President & CFO. Jack joined Hanson Industries in 1985 as Group Controller. In 1987, he became Corporate Controller and in 1990 was made VP and Controller. He left the Corporate office in August 1991 to become the VP and CFO of Peabody Holding Company. He returned in 1995 at his present title.
George H. Hempstead, III- Sr. VP Law and Administration, George first joined Hanson in 1976, left in 1978 and returned in 1982 as VP and General Counsel. In 1986 he was named a Director of Hanson Industries and in 1990 an Associate Director of Hanson PLC. George was named Sr. VP and General Counsel in December 1993. In June 1995, George was appointed to the position of Sr. VP Law and Administration.
Robert E. Lee - President and Chief Executive Officer Millennium Inorganic Chemicals. Bob joined Hanson Industries in 1982 and held various positions in the financial area before becoming Treasurer in 1987. He was appointed to Vice President and Treasurer in 1990, and assumed the position of Vice President and Chief Financial Officer in 1992. In 1995, he was appointed Senior Vice President and Chief Operating Officer of Hanson Industries, and became President and Chief Operating Officer of Millennium Chemicals when it was demerged from Hanson in October 1996. Bob is a Director Of Millennium chemicals and Vice Chairman of its Operations Committee.
George W. Robbins- President and Chief Executive Officer Millennium Specialty Chemicals. George has been associated with the plastics or chemicals industries for almost 30 years. He joined Millennium Specialty Chemical in 1982 as VP and General Manager of SCM Organic Chemicals Division in Jacksonville, FL. After Hanson acquired SCM in 1986, he became Chairman, President and CEO of the company. George holds a BA from Virginia Military Institute.
Ronald H. Yocum- President and Chief Executive Officer Millennium Petrochemicals Company. Dr. Yocum joined Millennium Petrochemicals in 1987 as Group Vice President, Research and Development. Prior to 1987 he held the same position for Enron Chemical which was acquired by Millennium Petrochemicals. In 1989, Ron was named President and CEO of Millennium Petrochemicals Company and in 1995 he was also appointed Chairman. He received his undergraduate degree in chemistry from Gettysburg College and his Ph.D. in organic chemistry from the University of Pennsylvania.


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