Total selling Chinese PS arm to Ineos Styrolution
French energy and petrochemicals group Total said it has accepted an offer by Ineos Styrolution to acquire Total’s polystyrene business in China The deal includes two 200,000t/y production facilities, at Ningbo in Zhejiang Province and Foshan, Guangdong Province, respectively.
The transaction is subject to the approval by the relevant regulatory authorities. Neither a closing date nor financial terms have been disclosed.
In contrast to Europe and the US, Total said that in a highly competitive market it did not have the required critical mass in China. In future, commented Bernard Pinatel, president, Refining & Chemicals, the French player’s PS business will be focused on Europe and North America, two markets in which it claims second place.
Total said Ineos Styrolution has made “clear commitments” to maintain the business and jobs and meet commitments to Total’s customers.
With the takeover, the Ineos subsidiary, at one time a joint venture with BASF, will gain its first foothold in the Chinese market. “A little more than one year after our first acquisition, Ineos Styrolution continues to grow its footprint in the Asian market,” said CEO Kevin McQuade.
In 2017, the styrenics producer based in Frankfurt completed the acquisition of the styrene-butadiene copolymers business of Chevron Phillips Chemical and Daelim Industrial, which included a plant in South Korea.
The Ningbo facility, which employs 54, also includes a unit that makes polypropylene compounds for automotive parts. After the closing of the transaction, this plant will produce exclusively for Total. The Foshan facility employs 86 people.
Steve Harrington, president Asia Pacific and Global Styrene Monomer at Ineos Styrolution, said the buy also provides the company with a platform to further develop its manufacturing base in China.
