Total sells polystyrene business in China to INEOS Styrolution
French energy major Total S.A. has accepted an offer from INEOS Styrolution, the leading global styrenics supplier, to acquire its polystyrene business in China. It includes in particular two facilities with a production capacity of 200,000 tons per year each, located in Ningbo, Zhejiang Province, and in Foshan, Guangdong Province.
The Ningbo plant produces 200,000 tons of polystyrene a year and has 54 employees. It also includes a unit that manufactures polypropylene compounds for automotive parts. After thclosing of the transaction, the polypropylene compounds production will be exclusively dedicated to Total.
The Foshan plant produces 200,000 tons of polystyrene a year and has 86 employees.
In a highly competitive polystyrene market, Total considered 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, Refining & Chemicals at Total. “Our polystyrene business will be now focused on Europe and North America, two markets where we are the No. 2.”
INEOS Styrolution has made clear commitments to maintain the business and jobs and meet commitments to customers.
The transaction is subject to the approval of the relevant regulatory authorities.