Solvay and BP establish hdPE joint ventures
01 November 2001 13:37 [Source: ICIS news]
LONDON (CNI)--Belgian chemicals company Solvay announced on Thursday the creation of two high density polyethylene (hdPE) joint ventures with BP, named BP Solvay Polyethylene.
A three-way agreement involving the merger of the two companies’ hdPE activities plus the swap of Solvay's polypropylene (PP) business with BP’s engineering polymers business becomes effective today. It was signed in August and has retroactive effects from 1 October.
Solvay and BP are establishing a 50:50 hdPE joint venture in Europe, managed by former BP employee Robin McGill, and a 51:49 venture in the US managed by Foster Brown, from Solvay.
Solvay said sales from its high performance engineering polymers and performance compounds business are expected to reach approximately Euro900m ($803m) with the acquisition of BP’s engineering polymers business. These activities will be managed by speciality polymers and performance compounds manager Vincenzo Morici.
Alois Michielsen, Solvay's chief executive, commented: "With increased position in high-margin specialty polymers and strong leading position in hdPE, the group reduces its exposure to petrochemical cycle while increasing the value of its product portfolio."
The company warned yesterday (31 October) that it no longer expected second half earnings to exceed last year’s levels.
By: Joanna Kesteven
+44 208 652 3214
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