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Pipe plant's owner buys out lease for $14.5 million

February 02, 2001

Pipe plant's owner buys out lease for $14.5 million



By SCOTT BUTKI / Staff Writer


The owner of a Washington County pipe-manufacturing plant has bought out its lease for $14.5 million.

Chevron Phillips Chemical Co. LLC paid MRSL Hagerstown LLC $14.5 million for the 30-acre property that includes the 116,000-square-foot plant, Plant Manager Leland Zlomke said Friday.

The company had a 15-year lease on the property, Zlomke said. The land was transfered Jan. 19.

The plant, which has about 60 employees, is at 11711 Hopewell Road, he said. It has been operational since June 1997, he said.

Last year Bartlessville, Okla.-based Phillips Driscollpipe, the company's old name, merged with Chevron. The merger was effective July 2000.

The company is now called Performance Pipe, a division of Chevron Phillips Chemical Company.

The timing of the merger and the lease buy-out are completely coincidental, Zlomke said.

The reason for the high cost for the lease was the size of the property, he said.

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The lease buy-out demonstrates the company's committment to the plant. The plant is at a good location, he said.

The plant's main role is to take plastic that was brought in on pallets and through melting the plastic, turning them into pipes, which can then be sold, he said.

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