16 September 2011 09:11 [Source: ICIS news]
Correction: In the ICIS story headlined "Chevron Phillips buys Neste Oil's polyalphaolefin plant in Belgium" dated 16 September 2011, please read in the first paragraph ...US-based producer... instead of ...US oil firm... A corrected story follows.
SINGAPORE (ICIS)--US-based producer Chevron Phillips Chemical said on Friday it has agreed to acquire a polyalphaolefin (PAO) plant in Belgium from Finland’s Neste Oil for an undisclosed amount, to expand the company’s presence in Europe.
“The purchase is expected to be completed within a few months, following regulatory approvals and satisfaction of necessary closing conditions,” Chevron Phillips said in a statement.
The details on the capacity of the plant, which is located at Beringen in ?xml:namespace>
“The addition of this plant to our existing asset base will more than double our production capability, allowing us to better serve the growing demand for PAOs used in high-performance lubricants and other applications,” said Dennis Holtermann, general manager of normal alpha olefins and polyalphaolefins at Chevron Phillips Chemical.
In a separate statement, Neste Oil said the Beringen plant produces polyalphaolefins (PAO) and Group IV base oils, which are the main components used in high-performance synthetic lubricants and premium motor oils.
The divestment will allow Neste Oil to focus on the development of its high-performance base oils business.
“Neste Oil’s focus is on very high-viscosity index (VHVI) base oils, where the company aims at becoming a leading supplier in the global market, said Matti Lehmus, executive vice president for oil and renewable products at Neste Oil.
“Neste Oil’s sales of VHVI base oils will exceed 1.3m tonnes annually by 2014, following the implementation of growth projects in
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