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.
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.
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.