BP seeks offers for plastic fabrications and fabrics and fibres
15 Jan 2001
BP intends to divest its plastic fabrications and fabrics and fibres businesses. The businesses produce a wide range of fabricated products, primarily from polyethylene and polypropylene, which are sold into many different industrial, packaging and floor covering markets worldwide. Their annual turnover is approximately $1 billion.
Any transactions would be subject to regulatory and other approvals, and consultation with workers' representatives. BP expects to complete the sale of the businesses during 2001.
The fabrics and fibres business is a producer of primary and secondary polypropylene carpet backings and is a leading manufacturer of non-woven polypropylene fabrics for furniture and bedding construction. The business is also a leading supplier of woven and non-woven geo-textiles and woven fabrics for a wide range of packaging applications.
The plastic fabrications business is a producer of speciality packaging for food, pharmaceutical and industrial markets. The business supplies films, non-woven materials and composites for hygiene and medical applications and is a leading supplier of blow-moulded plastic components and assemblies for the appliance and automotive industries. It is also a leading European producer of agricultural films and netting. The business includes a 51 per cent share in Arjobex, a world leader in the production of synthetic papers from polyethylene.
Included in the sale will be a total of 19 wholly-owned sites and manufacturing operations: seven in the USA, six in Germany, and one each in the UK, Mexico, Brazil, Australia, Poland and Hungary. Also included will be interests in joint venture sites in China, France, the UK and the USA.
In May 2000, BP announced that it had reached agreement with Bayer to buy their 50 per cent stake in the companies' Erdoelchemie joint venture. Erdoelchemie produces over 4.2 million tonnes per annum (tpa) of petrochemicals, including 900,000 tpa ethylene, 560,000 tpa propylene and 540,000 tpa polyethylene. The transaction is expected to be completed in the first half of 2001.
In December 2000, BP announced that it had reached agreement with Solvay to take control of their polypropylene businesses in Europe and the USA, to combine BP's and Solvay's HDPE interests in the USA and Europe into joint ventures, and to transfer BP's engineering polymers business to Solvay. This transaction is expected to be completed in mid-2001.
