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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: February 24, 1994
SUN COMPANY, INC.
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(Exact name of registrant as specified in its charter)
Pennsylvania 1-6841 23-1743282
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(State or other (Commission (IRS employer
jurisdiction of file number) identification
incorporation) number)
Ten Penn Center, 1801 Market Street, Philadelphia, PA 19103-1699
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(Address of principal executive offices) (Zip Code)
(215) 977-3000
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(Registrant's telephone number, including area code)
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Item 5. Other Events.
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(a) Recent Developments
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Sun Company, Inc. today announced that it has signed a letter of
intent with Chevron U.S.A. Products Co. to purchase Chevron's 177,000-
barrel-a-day Philadelphia Refinery plus Chevron's one-third interest in a
petroleum pipeline connecting the refinery to the New York Harbor, for
approximately $170 million, including inventory. Closing is expected by
the third quarter of 1994, subject to approval by various government
agencies.
Sun Chairman and Chief Executive Officer Robert H. Campbell said he
was pleased that Sun and Chevron had reached agreement. "The Chevron
Refinery is right next to our Philadelphia Refinery, and we are already
purchasing finished products and refinery feedstocks from them, so there
are a number of synergies that can be developed," he noted.
"We intend to run the refinery to take advantage of these synergies,
and we expect to see an immediate positive contribution to both cash and
income as a result of this purchase."
For the past several years, Chevron has operated the facility as a
"merchant" refinery, selling largely to the wholesale market, including
Sun. Campbell said it is Sun's intention to continue supplying this
market.
Commenting on why Sun would purchase a refinery at a time when there
is an oversupply of refining capacity in the United States, Campbell said,
"This acquisition is in line with our strategy of growth in our core
businesses. We will operate the refinery in an environmentally responsible
manner to supply our own needs and will continue sales to Chevron's
existing wholesale customers."
He added that the acquisition would result in improved operating
efficiencies. "By operating the refinery jointly with our Philadelphia and
Marcus Hook, Pa., refineries as part of our Delaware Valley Refining
Complex, all three refineries will be strengthened," he stated.
The refinery produces gasoline, distillate fuel, low-sulfur residual
fuel, and petrochemicals, and it employs approximately 550 people. "We
fully expect to preserve most of these jobs," Campbell said.
Refining operations first began at the site in the 1920's, and a major
expansion occurred in the 1950's. The 711-acre refinery was owned by Gulf
Corporation until 1984, when Gulf was acquired by Chevron.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
SUN COMPANY, INC.
BY s/ RICHARD L. CARTLIDGE
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Richard L. Cartlidge
Comptroller
(Principal Accounting Officer)
DATE February 24, 1994
