BP to sell olefins and derivatives
28 Apr 2004
BP plans to consolidate its Olefins and Derivatives (O&D) division of its petrochemicals business into a stand-alone entity able to operate separately from the BP Group.
O&D products include olefins (ethylene and propylene) and their derivatives, such as acrylonitrile, polyethylene, polypropylene and solvents.
The O&D business employs approximately 7,500 people in 24 locations worldwide, chiefly the US and Europe. Major petrochemicals sites include Grangemouth in Scotland, Lavera in France, Koln and Gelsenkirchen in Germany, and Lima, Chocolate Bayou and Green Lake in the US and the SECCO joint venture in China.
The new O&D business will incorporate more than half of the $13 billion of operating capital employed in BP's petrochemicals portfolio, giving it the scale to be a major independent player in the global petrochemicals sector.
It will be headed by Ralph Alexander, who was named as chief executive of BP's petrochemicals business with effect from July 1, 2004.
BP said it plans to sell O&D in due course, possibly through an Initial Public Offering, depending on market circumstances and necessary approvals, in the second half of 2005.
The Group intends to retain the balance of its petrochemicals portfolio, comprising its aromatics and acetyls businesses. BP views these as "advantaged products" where it has leading proprietary technology and strong positions in growing Asian markets.
