SI Group, a leading global developer and manufacturer of chemical intermediates and specialty resins based in Schenectady, N.Y., U.S.A., has agreed to acquire TPC Group’s Baytown, Texas, U.S.A.’s manufacturing facility.
The agreement includes an on-site terminal and manufacturing assets for nonene, tetramer and other propylene derivatives. Nonene and tetramer are propylene oligomers used as intermediates in the production of plasticizers, detergents, lube oil additives, antioxidants and other performance products.
“TPC Group and SI Group have a longstanding partnership that extends beyond 25 years,” said Frank Bozich, SI Group president & CEO. “The addition of the Baytown facility further enhances our global capabilities by reinforcing our security of supply, and enabling SI Group to better serve our customers in downstream markets, such as fuel, lubricant and oilfield additives. We are committed to the successful integration of this business, as it’s a vital component of our growth agenda.”
“In 2016, TPC Group has made great strides in our earnings and cash improvement plan, or ECIP, targeted to deliver more than USD100 million of year-over-year improvement,” said Ed Dineen, TPC Group chairman, president and CEO. “One key element of this plan was the sale of non-core assets of which the Baytown assets were the most leveraging components. While the Baytown assets and people have consistently delivered value to TPC Group, the proceeds of this transaction will allow us to strengthen and grow our core C4 processing, Performance Products and Fuels Octane businesses.”
TPC Group Inc., headquartered in Houston, Texas, U.S.A., is a leading producer of value-added products derived from niche petrochemical raw materials such as C4 hydrocarbons. TPC Group sells its products into a wide range of performance, specialty and intermediate segments, including synthetic rubber, fuels, lubricant additives, plastics and surfactants.