US Sunoco puts chemicals business up for sale

15 December 2008 16:16  [Source: ICIS news]

HOUSTON (ICIS news)--US refiner Sunoco has placed its chemical business up for sale, the company said on Monday during an investor meeting.

Sunoco's chemicals business produces acetone, phenol, cumene and polypropylene (PP) among others.

Although the chemical business has produced steady cash and income, it has not met the company's targets for a return on investment, Sunoco said. In addition, the global economic downturn is dragging down the outlook for the chemical industry.

Sunoco did not identify any possible buyers for the business.

Sunoco's business segments are refining and supply, retail marketing, chemicals, logistics and coke. For the nine months that ended on 30 September, the chemicals segment reported an income of $40m (€30m), or 7% of the company's total.

Sunoco owns and operates acetone and phenol plants in Philadelphia, Pennsylvania, and Haverhill, Ohio. Its PP plants are in LaPorte, Texas, Bayport, Texas, and Neal, West Virginia.

The company also owns a plant in Marcus Hook, Pennsylvania, which upgrades propylene and produces PP. Sunoco's refineries in Philadelphia and Westville, New Jersey, produce cumene.

Product	m lb/year	tonnes/year
Phenol	1,775	805,000
Acetone	1,083	491,000
Bisphenol A (BPA)	240	109,000
Other phenol derivatives	120	54,000
Cumene	1,925	873,000
Polypropylene	2,550	1.16m
Propylene	750	340,000

($1 = €0.75)

For more on acetone, BPA, cumene, phenol or PP, visit ICIS chemical intelligence
To discuss issues facing the chemical industry go to ICIS connect

ICIS Copyright © Reed Business Information 2009

Author: Al Greenwood
+1 713 525 2653

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