Celanese sells Texas EO/EG plant to Old World

08 December 1999 16:20  [Source: ICIS news]

HOUSTON (CNI)--Celanese said Wednesday it has completed the sales of its ethylene oxide (EO) and ethylene glycol (EG) production unit in Clear Lake, Texas to Old World Industries of Northbrook, Illinois.

The agreement between the two companies calls for Dallas, Texas-based Celanese to continue to operate the plant, which has been producing EG for 30 years. The unit is capable of producing 272 000 tonne/year of EG and 40 834 tonne/year of merchant-grade EO. Financial terms were not disclosed.

Bruce Bennett, executive vice president of Celanese's chemicals and acetate division, said the sale represents part of the company's strategy to divest non-core assets and focus on its core acetyls, chemical intermediates and acetate products businesses.

Old World chairman Tom Hurvis said "a variety of different users" with separate applications for EO and EG have presented his company with opportunities since the deal was first announced and as a result, Old World "will need all of the monoethylene glycol produced at Clear Lake."

Riaz Waraich, Hurvis' partner, said the transaction is the first in the series of investments Old World plans to make in the chemical industry. He said: "Our first plan is to double our EO capacity at Clear Lake by June/July."

Old World is the second-largest antifreeze manufacturer in the US.

By: Mary Ann Tawasha
+1 713 525 2653

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