UpdateUS Eastman deal for Sterling Chemicals to close in Q3
22 June 2011 20:42 [Source: ICIS news]
(updates with expected closing date and additional plant information)
HOUSTON (ICIS)--Eastman Chemical’s planned $100m (€69m) deal to acquire US petrochemicals producer Sterling Chemicals is expected to close in the third quarter of 2011, ?xml:namespace>Sterling said on Wednesday.
Eastman announced earlier it had agreed to acquire Sterling Chemicals, including Sterling’s plasticisers and acetic acid production assets in Texas City, Texas.
Eastman plans to modify and restart Sterling’s idled plasticiser plant to produce non-phthalate plasticisers in order to strengthen its position in that growing market.
An Eastman official did not say by when the restart of the plasticiser plant is expected to take place.
Sterling idled the plant earlier this year after BASF terminated a purchase contract. BASF was the plant’s sole purchaser of plasticisers, according to regulatory filing by Sterling.
Also included in Eastman’s acquisition is Sterling’s 1.3bn lb/year (590,000 tonnes/year) acetic acid plant at Texas City, along with a long-term agreement to supply BP Amoco Chemical with acetic acid until 2031.
($1 = €0.69)
For more on Eastman and other producers visit ICIS company intelligenceBy: Stefan Baumgarten+1 713 525 2653
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