BP has announced it is to sell its petrochemical complex in Decatur, Alabama, to Indorama Ventures Public Company Ltd, as part of a previously announced effort to refocus its global petrochemicals business for improved profitability and long-term growth.
The divestment is in line with BP’s global petrochemicals strategy of pursuing a competitively advantaged portfolio through world-scale, low-cost facilities that utilise BP proprietary technology, including the production of purified terephthalic acid, or PTA, a key raw material in the production of polyester.
“This agreement allows us to focus investment on our world-class PTA production facility in Cooper River, South Carolina, and a key PTA feedstock producer in Texas City, Texas, as well as to maintain a strong position in the important U.S. petrochemicals industry," commented Rita Griffin, Chief Operating Officer of BP Global Petrochemicals.
Following the terms of the agreement, Indorama Ventures will purchase the Decatur complex including working capital and related infrastructure and assume certain contracts with suppliers and customers. The parties anticipate the deal closing to occur in early 2016 when employees will transfer to the new owner.
“We are grateful to our employees who have made the Decatur facility a safe, reliable and valuable contributor to BP’s business for so many years,” said Luis Sierra, head of BP’s global aromatics business unit. “We believe this agreement - with an established global industry leader such as Indorama Ventures – provides a compelling future for those employees, the site and the community of Decatur.”
The Decatur complex can produce 1 million tpy of PTA, as well as paraxylene (PX), a raw material for PTA production.
Edited from press release by Angharad Lock
Read the article online at: https://www.hydrocarbonengineering.com/petrochemicals/07012016/bp-to-sell-to-indorama-ventures-public-company-1871/