01 February 2002 15:49 [Source: ICIS news]
HOUSTON (CNI)--ExxonMobil will buy out Solutia's 50% share of their Advanced Elastomer Systems (AES) limited partnership for an undisclosed sum, giving the chemical unit of the integrated oil company full control of the Akron, Ohio-based producer of thermoplastic elastomers (TPEs).
Although the companies disclosed no details of the sale, they did note AES boasts annual sales of $300m (Euro353m) and employs 700 workers worldwide.
ExxonMobil spokesman Vin Hoey told CNI that his company has watched AES sales grow at double digit rates during the ten years of its partnership in the venture and emphasised that AES makes products complementary to businesses where ExxonMobil's chemical operations want to expand.
He said the time frame for closing remains uncertain and faces review by the US Federal Trade Commission (FTC) to ensure against antitrust violations.
In a statement announcing the deal, ExxonMobil quoted Jim Harris, senior vice president for polymers, saying: "This acquisition demonstrates ExxonMobil Chemical's commitment to having the broadest portfolio of polymers based upon ethylene and propylene serving a broad range of markets."
AES makes TPE products designed to perform like rubber and process like plastic. A key product is Santoprene, which AES considers a breakthrough product for applications in automotive, construction, consumer goods, electrical, foods, plumbing and medical markets worldwide.
ExxonMobil is an integrated oil company headquartered in Irving, Texas. Solutia is a specialty chemicals company located in St Louis, Missouri.
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