Total sells its polystyrene business in China to Ineos Styrolution
The deal includes the purchase of the wholly owned Chinese polystyrene business including two production sites in Ningbo and Foshan and two related offices in Guangzhou and Shanghai.
Germany-based styrenics supplier Ineos Styrolution has signed an agreement to acquire two polystyrene (PS) production sites in China from French multinational Total S.A.
The terms of the deal have not been disclosed.
The deal includes the purchase of the wholly owned Chinese PS business including two production sites in Ningbo and Foshan and two related offices in Guangzhou and Shanghai.
In a statement, Total said that, in “a highly competitive PS, [it] did not have the required critical mass in China, unlike its positions in Europe and the United States.”
“The sale is in line with our active portfolio management strategy,” said Bernard Pinatel, president of refining and chemicals at Total. “Our polystyrene business will be now focused on Europe and North America, two markets where we are the No. 2.”
The Ningbo plant produces 200,000 tons of PS a year and has 54 employees. It also includes a unit that manufactures polypropylene compounds for automotive parts. After the closing of the transaction, the polypropylene compounds production will be exclusively dedicated to Total.
The Foshan plant produces 200,000 tons of PS a year and has 86 employees.
“This is an important milestone for both Ineos Styrolution and the Ineos Group as it represents our first manufacturing assets in China,” said Steve Harrington, president of Ineos’ Asia Pacific and global styrene monomer division. “In addition, it provides us with a platform to further develop our manufacturing base in China.”