Chemical maker BASF and Shell have reached agreement for BASF to sell its 50 per cent share in their propylene oxide-styrene monomer (POSM) joint venture.
Financial details of the transaction were not disclosed. Closing is planned for December 31, 2014.
ELLBA Eastern started production in 2002, and is operated by Shell. According to a BASF statement, the plant is fully integrated into the Shell site on Jurong Island, Singapore, and has an annual capacity of 250,000 metric tons of propylene oxide and 550,000 metric tons of styrene monomer. The ELLBA joint venture between Shell and BASF in Moerdijk, the Netherlands, is not affected by the transaction, BASF continued.
“BASF remains globally committed to propylene oxide and its respective value chains,” the BASF statement said. “Therefore, as part of the agreement, BASF and Shell have signed a supply contract to provide BASF with the necessary volumes of propylene oxide.”
