TotalEnergies and SABIC Consider Selling US Chemical Plant
Major French oil company TotalEnergies SE and Saudi Basic Industries Corp. (SABIC) are considering selling a jumbo US plant that produces styrene and polystyrene, used in products such as plastic packaging, disposable cups, and insulation.
TotalEnergies and SABIC are working with an adviser to prepare the sale of the styrene and polystyrene production lines in Carville, Louisiana, which together could fetch at least €900 million ($1 billion), reported Bloomberg. Work is at an early stage, and the companies may eventually decide to keep the plant.
The two jointly own the styrene production plant in Carville, which has a capacity of 1.2 million tons a year, according to TotalEnergies’ annual report. TotalEnergies fully owns the polystyrene unit. Together, they are the world’s largest styrene and polystyrene facility.
The French company has invested to upgrade production sites for other chemical products in the US in recent years, while it’s building an €10 billion ($11 billion) petrochemical project in Saudi Arabia with Aramco. It’s also transforming some refineries in France into biofuel plants; it recently sold some French chemical assets to Ineos Group.
