SABIC swoops for Huntsman UK business
28 Sep 2006
Sittard, The Netherlands – Saudi Basic Industries Corp. (SABIC) is to acquire Huntsman Petrochemicals (UK) Ltd -- Huntman’s European Base Chemicals and Polymers business -- for $700 million in cash. The transaction is scheduled to close by the end of 2006, subject to regulatory approvals, the companies announced 28 Sept.
As part of the deal, SABIC said it will complete Huntsman’s $150-million project to construct a 400-kpta low density polyethylene plant in Wilton, Teesside. All of Huntsman Petrochemicals UK’s 830 employees will transfer to the group under the same employment conditions, the group added.
The Huntsman business unit currently operates an 865-ktpa ethylene/400-ktpa propylene cracker and 1300-ktpa aromatics facilities at Wilton and North Tees. The new 400-ktpa LDPE plant is due to come on stream by the end of 2007.
The acquisition is a substantial boost for SABIC Europe -- the polymer and chemicals business acquired from Dutch group DSM in 2002. The deal follows the cancellation, this summer, of a major expansion project at the SABIC Europe’s polyolefins production site in Geleen, The Netherlands.
Huntsman’s UK/European business is a major addition to the SABIC Europe group of companies and to SABIC’s business overall and shows the groups commitment to its globalisation strategy, according to Mohamed Al-Mady, vice chairman and CEO of SABIC.
“The businesses we are acquiring at Wilton and North Tees add additional talented employees and offer further high quality production platforms to achieve our next stage of growth, and will add to our other sites in Europe in Geleen, and Gelsenkirchen, Germany,” said Al-Mady,
“We are fully committed to realizing the full potential of these businesses and therefore we intend to invest and grow the business in the future, including the continued construction of the new polyethylene plant,” SABIC’s boss added.
SABIC claims to be among the world’s 10 largest petrochemicals manufacturers, with leading positions in the production of polyethylene, polypropylene, glycols, methanol, MTBE and fertilizers.
