Indorama Ventures buys BP's Alabama petrochemical complex
With this, IVL gets access to an integrated paraxylene and PTA facility and world's only commercial plant to manufacture NDC, a specialty chemical used in performance polymers and films
 "Indorama Ventures buys BP's Alabama petrochemical complex")
BP has agreed to sell its petrochemical complex in Decatur, Alabama, to Thai firm Indorama Ventures Public Company Limited, as part of a previously announced effort to refocus its global petrochemicals business for improved profitability and long-term growth. The transaction is expected to complete in the first half of 2016 and is subject to the usual regulatory approvals.
The Decatur complex makes chemicals essential for the production of thousands of items, from plastic water bottles to flat-screen televisions. Located on 1,000 acres in Northern Alabama, the complex can produce one million tonnes per year of purified terephthalic acid (PTA), as well as paraxylene (PX), a raw material for PTA production. The site also is the world’s only commercial manufacturer of naphthalene dicarboxylate (NDC), a specialty chemical used in new-generation polyesters and resins used to make LCD flat-panel displays, ultra-thin data storage tape and other products.
BP, which acquired the Decatur complex in the 1998 merger with Amoco, is one of the largest producers of PTA globally, with annual production capacity of 6.5 million tonnes from six locations. The divestment of Decatur complex 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 PTA, a key raw material in the production of polyester.
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Under 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.
The Decatur complex makes chemicals essential for the production of thousands of items, from plastic water bottles to flat-screen televisions. Located on 1,000 acres in Northern Alabama, the complex can produce one million tonnes per year of purified terephthalic acid (PTA), as well as paraxylene (PX), a raw material for PTA production. The site also is the world’s only commercial manufacturer of naphthalene dicarboxylate (NDC), a specialty chemical used in new-generation polyesters and resins used to make LCD flat-panel displays, ultra-thin data storage tape and other products.
BP, which acquired the Decatur complex in the 1998 merger with Amoco, is one of the largest producers of PTA globally, with annual production capacity of 6.5 million tonnes from six locations. The divestment of Decatur complex 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 PTA, a key raw material in the production of polyester.
ALSO READ: Thailand's Indorama Ventures acquires PET maker MicroPet
Under 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.
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