Arlanxeo Sells Olefins to Mitsubishi
Saudi Aramco subisidiary Arlanxeo Canada has agreed to sell its olefins business to Diamond Petrochemicals Canada, a subsidiary of Japan’s Mitsubishi Corp.
Arlanxeo said the business, which produces butadiene and raffinate at the Bio-Industrial Park Sarnia in Ontario, no longer fits with its strategic focus. The companies believe that the business will develop and grow in the future under Mitsubishi’s ownership.
The Arlanxeo butyl rubber unit at the site is reported to be excluded from the deal and will continue all current production activities.
The transaction is expected to close in the first half of 2021, subject to the usual conditions and regulatory approvals.
Mitsubishi said it expects to continue operations in Sarnia, taking over all existing employees.
Arlanxeo was previously a 50:50 joint venture between Aramco and German specialty chemicals company Lanxess. Aramco took full control of the venture in December 2018.
Author: Elaine Burridge, Freelance Journalist
