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Shell leaders mull possible sale of Beaver County cracker plant

The Shell cracker plant only started operating in Potter Township, Beaver County, nearly three years ago, but will it stay? 

There's talk about a possible sale. Economic leaders and folks in the region have mixed feelings.

On July 31, Shell CEO Wael Sawan talked about the type of plastic they produce at the facility in Potter, without any support from other industry-related plants nearby.

"The issue is it's our only one, our only major facility, and that's why we've said we're not the natural owner of that asset," Sawan said.

It was on an earnings call when he also shared that they're going to focus on stopping the bleeding.

"It's not easy to be able to transact on something like that immediately, but we continue to have discussions," Sawan said.

In March, the Wall Street Journal first reported that Shell was looking to sell off chemical assets in the U.S. and Europe.

However, a spokesperson for the company told KDKA-TV, "Shell has not announced any sale of its Monaca facility," and is looking to "[optimize] returns from [their] assets" and to "pursue strategic and partnership opportunities for [their] chemical facilities in the U.S."

Some people living in the county, like Harry Wallace, said they would be happy to see it go.

"I think it's more negative than it is positive," Wallace said.

Their primary reason for that view is due to environmental concerns.

In 2023, the Pennsylvania Department of Environmental Protection fined the company nearly $10 million for air quality violations.

However, economically, Lew Villotti sees the company as vital to the region.

"Shell was the canary in the coal mine, so to speak," Villotti said.

The president of the Beaver County Corporation for Economic Development said it took time after Shell started operating in late 2022 to see any impact, but he believes Shell provided momentum that led to nearly $170 million worth of investment, creating nearly 700 jobs in the last 12 months. 

Some examples of this investment came from Mitsubishi Electric, an expansion of Versatech, and more. He said they also have two other projects under non-disclosures that should be announced by the end of the year.

"When people talk about they haven't lived up to the hype, I don't know whose hype they're living up to, because they have in our eyes," Villotti said.

If the company were to sell, he feels the infrastructure would be a strong attraction for another business to move in, though, right now, he feels Shell will be staying for the foreseeable future.

"I don't anticipate them going anywhere. I don't anticipate the facility going anywhere," Villotti said.

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