Total Plans to Invest More Than 1 Billion Euros in France to Adapt and Consolidate Its Refining and Petrochemicals Operations

At a special meeting of the Central Works Council today, Total Petrochemicals France presented a plan to upgrade its most efficient units and consolidate the company to safeguard its competitiveness, in response to the structural deterioration of its markets, which are burdened with lasting overcapacity.

As part of the project, approximately 230 MЂ will be invested to bring to the most efficient level the energy efficiency and competitive strength of the steamcracker and high-density polyethylene (HDPE) unit in Gonfreville and to consolidate polystyrene production at the Carling facility.

It will also lead to the closure of structurally loss-making units — a low-density polyethylene line in Carling in eastern France and a low-density polyethylene line and a polystyrene line in Gonfreville in northwestern France. The plan will streamline production facility organization, concentrate customer technical support „џ currently provided in part from Mont in southwestern France „џ at the Feluy complex in Belgium, and rescale Paris headquarters operations to the company’s new scope. The Lacq Research Center in southwestern France will be expanded to focus on state-of-the-art activities for all of Total’s businesses.

Furthermore, following the sole customer’s termination of the supply contract for secondary butyl alcohol produced at the Notre-Dame-de-Gravenchon facility in northwestern France, Total Petrochemicals France will have to close this dedicated facility.

Total is not planning any layoffs and is committed to finding appropriate solutions for the employees concerned by the 306 jobs that will be lost through 2012, with an emphasis on internal placement.

Implementation of this project, which is concurrent with but not linked to the Total Refining & Marketing plan, is subject to prior consultation with employee representatives from Total Petrochemicals France.