BP Amoco rules out buying Shell PS business

04 August 1999 15:24  [Source: ICIS news]

LONDON (CNI)--BP Amoco on Wednesday ruled itself out of the competition to buy Shell's polystyrene (PS) business.

Mike Buzzacott, group vice-president for polymers, confirmed that BP Amoco had considered the Shell business which is up for sale as part of the Anglo-Dutch major's plans to sell around 40% of its chemicals portfolio.

However, at a press conference to announce details of a major restructuring of its own styrenics operations, Buzzacott said BP Amoco was not interested in buying the Shell business.

He also dismissed unequivocally any plans to invest in eastern Europe. BP Amoco had been linked - in the immediate aftermath of its acquisition of the Huls styrenics business - with a possible new 100 000 tonne/year capacity expanded polystyrene (EPS) plant in Poland.

However, Buzzacott said: "We have no immediate plans for investment in eastern Europe."

He said BP Amoco's plants at Marl in Germany and Trelleborg, Sweden are well positioned to supply eastern Europe.

Buzzacott did, however, not rule out capital expenditure elsewhere on the styrenics business. "Clearly we have an option to expand at Texas City (in Texas) and Marl," he said.

The size, location and timing of any investment would depend on market conditions, added Buzzacott.

By: Neil Sinclair
+44 20 8652 3214

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly