28 September 2012 10:37 [Source: ICIS news]
LONDON (ICIS)--BP has agreed to sell all its purified terephthalic acid (PTA) interests in Malaysia to India’s Reliance Global Holding for $230m (€177m) in cash, it said on Friday.
Reliance will acquire 100% of the equity of BP Chemicals (Malaysia) Sdn Bhd (BPCM) located in Kuantan.
BPCM’s PTA plant, built in 1996, has a nameplate capacity of 610,000 tonnes/year. “This is an efficient plant with a good market position in the region. RECRON Malaysia, part of the Reliance Group, is already our largest customer in Malaysia and Reliance Industries is a significant feedstock supplier at Kuantan, so Reliance is a natural owner of this plant,” said James Yim, head of BP's aromatics business in Asia. “BP has a major, global PTA business, with around one fifth of global PTA production capacity and a track record of leading technology,” BP Petrochemicals chief executive said Nick Elmslie.
“We will continue to concentrate our PTA strategy on deploying new technologies into high growth markets like China where we are in the middle of a considerable expansion programme, and in OECD markets where our technology gives us an advantage and high utilisation rates," he added.
“We are also building new revenue streams by licensing our PTA and paraxylene technologies," Elmslie said.
BP has 7.5m tonnes of PTA capacity globally. It largest plant is in Zhuhai, China where it is adding 1.25m tonnes/year to a current capacity of 1.5m tonnes/year. The Zuhai expansion is due for completion by 2014..
BP said it has agreed to sell assets with a total value of $33bn including this deal and expects this to increase to $38bn by the end of 2013.
($1 = €0.77)
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