November 20, 1997

Jill Lawrence
(804) 371-0049
Governor Allen Hails $20 Million Investment for York County
-- Amoco Corporation to Expand Yorktown Facility - -

Richmond - Governor George Allen today announced that Amoco Corporation's Refining Business Group will invest $20 million to expand its Yorktown refinery by installing a new alkylation unit. The unit will create a high octane, low emission gasoline blending component necessary for the production of reformulated gasoline, the fuel required in the Richmond and Hampton Roads metropolitan areas by the Environmental Protection Agency (EPA). Amoco's decision will result in 25 new jobs while retaining 215 jobs at the Yorktown facility. Virginia successfully competed with Texas and North Dakota for the new unit. Construction could begin as early as the fall of 1998.

"Amoco Corporation's decision to expand their operations in Virginia will help to strengthen and diversify the local economy and continue to fuel our renaissance of economic prosperity for the York County area," said Governor Allen. The Governor also authorized the Virginia Department of Business Assistance to provide workforce training services to "improve the skills of the new employees to help Amoco and its team succeed together."

Amoco's alkylation unit in Yorktown will employ a new technology developed by Haldor Topsoe A/S, Denmark. The advanced fixed-bed alkylation (FBA) technology holds the potential to provide economic, operational and safety advantages over current technologies. Amoco's Refining Business Group refines more than one million barrels of oil daily at five U.S. refineries.

"Adding alkylation technology to our existing refinery is the last major piece of our strategic plan to reestablish the profitability of Yorktown," said Al Kozinksi, Group Vice President of Amoco Refining Business Group. "We know the local workforce is poised to use this new tool to secure our competitive advantage and achieve our business vision."

Governor Allen approved a $150,000 grant from the Governor's Opportunity Fund to assist York County with site development. The Virginia Economic Development Partnership and York County assisted the company with its decision.

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