Total S.A. (Paris, France; www.total.com) has accepted an offer from Ineos Styrolution Group GmbH (Frankfurt am Main, Germany; www.ineos-styrolution.com), the leading global styrenics supplier, to acquire its polystyrene business in China. The transaction includes in particular two facilities with a production capacity of 200,000 ton/yr each, located in Ningbo, Zhejiang Province, and in Foshan, Guangdong Province.
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 U.S.
“The sale is in line with our active portfolio management strategy,” comments 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.
The Ningbo plant produces 200,000 ton/yr of polystyrene 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 ton/yr of polystyrene and has 86 employees.