La Seda close to selling PET plants in Italy, Portugal and Spain

22 September 2010 17:49  [Source: ICIS news]

LONDON (ICIS)--La Seda de Barcelona is close to selling three of its polyethylene terephthalate (PET) assets in Europe following the recently successful 59% divestment of its facility at Sines, Portugal, a company source said on Wednesday.

As part of its restructuring plan, La Seda de Barcelona was in talks with potential buyers for its plants at Portalegre, Portugal; SIMPE, Italy; and San Roque, Spain, the source said, who was speaking in Spanish.

Four other La Seda sites in Spain, Italy, Turkey and Greece were not for sale and were running at full capacity, the source added.

Following a period of consolidation among European PET producers and fewer imports of the material, the PET market has tightened, buyers and sellers agreed.

The current availability situation has led to an increase in prices, coupled with unexpectedly high feedstock costs.

For September contracts, sellers are targeting price increases of €30-50/tonne ($40-67/tonne) from the August price range of €1,050-1,100/tonne FD (free delivered) Europe.

In June, La Seda sold Industrias Quimicas Asociadas (IQA), its ethylene oxide (EO) facility in Spain, to American Industrial Acquisition Corp (AIAC) for €23m.

La Seda is due to hold an extraordinary shareholders meeting on 14 October, which will also see the election of a new board member, according to the source.

($1 = €0.75)

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By: Caroline Murray
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