Market intelligence: Oxea acquisition drives Oman downstream

18 October 2013 09:40  [Source: ICB]

Before its primary petrochemical units are on the ground in the landmark project in Duqm, Oman will acquire expertise and production capabilities that drive it straight towards the end consumer.

State controlled Oman Oil Company (OOC) has agreed to buy oxo chemicals producer Oxea from private equity group Advent International.

Oxea is the world’s number two oxo derivatives maker and the world’s largest merchant seller of oxo products. The acquisition gives Oxea access to ethylene and to growing markets in the Middle East and Asia. It gives Oman Oil direct access to a wealth of oxo process technology and a broad oxo products base.

Oxo products are widely used intermediates in many sectors of industry, being links in the chain of materials synthesis that runs downstream from the cracker towards coatings and consumer products, including detergents, flavours, fragrances, and lubricants.

Oxea is a company created by private equity from businesses which originated in former industry majors such as Germany’s Hoechst and Degussa.

Under Advent, the business has reportedly flourished and the product portfolio expanded towards high-margin oxo derivatives. Those derivates are the aldehydes, alcohols and ketones vitally important in downstream chemicals and materials.

Oxea has a portfolio of more than 70 oxo chemicals with operations in the in the Americas, Europe and Asia and a production capacity of 1.3m tonnes/year. “This acquisition will expand OOC’s downstream portfolio by bringing world-class technology and know-how to Oman through existing assets and new investments,” OOC said. “With the acquisition of Oxea, OOC aims to become a vertically integrated global chemical leader in the downstream industry.”

“With its international presence in Europe and North America, leading technology, efficient platform and longstanding experience in the Oxo segment, Oxea will support our further expansion into the chemical sector,” said OOC chairman Nasser bin Khamis Al Jashmi.

The link to Oman will aid Oxea’s expansion strategy, especially in growth markets in Asia while OOC would benefit from Oxea’s reach into European and North America markets, said Philippe de Fitte, vice president, downstream strategic business unit of OOC.

And Oxea executives say they are convinced of the synergies with what will one day be ethylene rich Oman Oil and the access to markets in Asia and the Middle East that the new owners may provide.

By: Nigel Davis
+44 20 8652 3214

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