(Houston-AP) -- Two years ago, Conoco touted carbon fiber as one of the oil company's next big things.
But successor ConocoPhillips announced Thursday it was scrapping plans for the material because the market has turned out to be weaker than expected.
Conoco announced in December 2000 that it had opened a carbon fiber office in Tokyo to market the substance derived from pitch -- a gummy byproduct of oil exploration.
Conoco aimed to double world production of the material.
The decision not to go forward means the company will have to take a 125 (M) million dollar writedown. But it also will have annual savings of 25 (M) million dollars from the shutdown of a new manufacturing facility in Ponca City, Oklahoma.
The decision also means that 175 workers on the project either will be reassigned or laid off.
The Houston-based company says it will pursue other carbon-related businesses.