17th Nov 2015 15:00
LONDON (Alliance News) - BP PLC said Tuesday it is exploring the sale of its Alabama petrochemical facility as part of a broader reorganisation of its global petrochemicals business.
The complex, in Decatur, no longer fits with BP's strategy it said. It can produce million tons of purified terephthalic acid, a key raw material in the production of polyester, per year, as well as paraxylene which is used in purified terephthalic acid.
BP is spending USD200.0 million to upgrade its Cooper River SC plant and sister facility in Geel, Belgium, in an effort to reduce operating costs, improve reliability and reduce emissions. Earlier this year it also started up its new Zhuhai 3 unit in Guangdong Province, China.
BP expects to complete the sale of all or part of the facility provided a buyer can be found and an acceptable deal can be reached, it said.
"The decision to explore a sale of this facility was not taken lightly. It has been a significant part of our company and of the Decatur community for a very long time," said Rita Griffin, chief operating officer of BP Global Petrochemicals in a statement.
"We believe the site - and its more than 400 employees - would be a very attractive addition to the portfolio of another operator. We're determined to find a buyer who will recognise its value and keep it a viable and vibrant part of the region for years to come," Griffin added.
Shares in BP were up 2.1% at 376.35 pence Tuesday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
BP