Arco Chemical Board OKs Reduced Budget

Arco Chemical Co. said its board approved a five-year, $2.3-billion spending plan, about $300 million less than it set aside last year for the period 1997 through 2001. Capital spending in 1997 is expected to be about $275 million, less than the Newtown Square, Pa.-based company expected a year ago. When Arco Chemical last year laid out its capital plan, it anticipated spending $450 million in 1997, said spokeswoman Sallie Anderson. Capital spending in 1998 is forecast at $565 million. About 70% of the funds for the program have been set aside for projects in Arco Chemical’s main propylene oxide, urethanes and performance chemicals businesses. Arco Chemical shares rose 69 cents to close at $44.50 on the NYSE. The company is 82.7% owned by Los Angeles-based Atlantic Richfield Co.