04 December 2002 15:48 [Source: ICIS news]LONDON (CNI)--UK-headquartered oil and chemicals giant BP announced Tuesday has acquired partner Itochu’s 15% stake in their US-based joint venture Arco Polypropylene for an undisclosed sum.
The joint venture, which owns and operates a 200 000 tonne/year polypropylene (PP) plant in Carson, California, was 85% owned by BP and 15% by Itochu subsidiary Ciplas America.
BP, which currently operates the Carson plant, said the strategic management of the plant and the associated commercial operations will now be consolidated into its Naperville, Illinois-based North American polymers business unit.
However, it said Ciplas America will continue to market production from the Carson facility in Asia and South America as a sales agent.
Mike Graff, president of BP's polymers business in the Americas, said: "Fully integrating Arco Polypropylene into BP's North American PP business will allow us to capture benefits through increased efficiency and optimisation of operations and products. This will both allow us to better serve our customer base and further enhance BP's reach in the Americas."
BP is the second largest producer of PP in North America and now has a total US production capacity of 1.2m tonne/year. In addition to Carson, BP also produces PP from plants at Chocolate Bayou and Deer Park in Texas.
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