Canadian Plastics

Arlanxeo Canada selling its olefins business to Mitsubishi

Arlanxeo’s olefins business produces butadiene and raffinate, and is located at the Bio-Industrial Park in Sarnia, Ont.

October 21, 2020   Canadian Plastics

Arlanxeo’s operations in Sarnia, Ont. Photo Credit: Arlanxeo Canada Inc.

Chemical supplier Arlanxeo Canada Inc. is selling its olefins business to Diamond Petrochemicals Canada Corp., a subsidiary of Japan’s Mitsubishi Corp.

The financial terms of the deal have not been disclosed.

Arlanxeo’s olefins business produces butadiene and raffinate, and is located at the Bio-Industrial Park in Sarnia, Ont. In a statement, Arlanxeo said that Mitsubishi expects to continue operations in Sarnia, with existing olefins employees transferring from Arlanxeo to Mitsubishi.

“While the olefins business no longer fits in with [our] strategic focus, Arlanxeo and Mitsubishi are confident that under Mitsubishi’s ownership, the business will develop and grow in the future,” the statement said.

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The transaction is expected to close in the first half of 2021.

Arlanxeo is a major producer of synthetic rubber and a wholly owned subsidiary of Saudi Aramco, a producer of the energy and chemicals.


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