SunCoke Energy to Move Headquarters
09/27/2010 - SunCoke Energy announces plans to relocate its headquarters from Knoxville, Tenn., following its planned separation from Sunoco in 2011.
Sunoco, Inc. subsidiary SunCoke Energy has announced plans to relocate its headquarters from Knoxville, Tenn., following its planned separation from Sunoco in 2011.
While SunCoke has selected suburban Chicago as the preferred location for its new headquarters, the final location will depend on successful completion of various negotiations and discussions at both the local and state levels.
The planned move of SunCoke’s headquarters is the latest development in the effort to separate the company from the rest of Sunoco. The companies say the separation will help to unlock shareholder value and will ultimately benefit both the coke business and the remaining fuels business.
SunCoke’s decision to relocate its headquarters follows a study and review of the company’s future operating needs. The company said that results of the study indicated that relocation to an international air travel hub would better position it to service the international steelmakers that comprise its existing customer base, pursue growth on a global scale, and tap a broader pool of talent with industry-specific experience.
“All of the final candidate locations, including suburban Chicago, have the resources and infrastructure to fully support our next phase of growth,” said Frederick A. Henderson, who will serve as Chairman and CEO of SunCoke following its separation from Sunoco. “As we expand our operations overseas, it is important for us to have quick access to a large international airport with flights to every corner of the world. Our customers have global needs, and we must be able to provide worldwide service efficiently.
“Additionally, a move will position us much closer to our operations and major customers,” added Henderson.
SunCoke employs approximately 90 people at its Knoxville headquarters, many of whom will be offered the opportunity to relocate with the company. SunCoke expects to add 30 new jobs as part of the process of becoming an entity independent of Sunoco.
SunCoke Energy, which is currently part of Sunoco, uses its proven technology and proprietary processes to make high-quality metallurgical-grade coke for major steel manufacturers in the United States and Brazil. SunCoke’s plants are configured to efficiently produce electricity and/or high-grade industrial steam from the valuable heat recovered from its coking process, resulting in a lower impact on the environment than traditional coke making plants.
The company’s facilities in the U.S. – located in Virginia, Indiana, Ohio and Illinois – have the capacity to manufacture approximately 3.67 million tons of metallurgical coke annually. The company is also building a plant in Middletown, Ohio, that is slated to produce 550,000 tons of coke and 46 megawatts of electricity when fully operational in the second half of 2011. SunCoke also is the operator of, and has an equity interest in, a 1.7 million tons-per-year-coke-making facility in Vitória, Brazil.
SunCoke recently announced plans to increase production from its metallurgical coal mines from approximately 1.25 million tons annually to approximately 1.75 million tons annually.
