German company purchases Polypropylene Business from Dow Seadrift
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Dow Chemical's plant at Seadrift is part of a sale to a German company.
Braskem S.A., a leading resin producer, announced Thursday the acquisition of the Polypropylene Business from Dow for $323 million.
This transaction represents an important step in Braskem's growth strategy in the Americas and also consolidates its PP leadership in the U.S., a release issued by the company stated.
Polypopylene Business has a total annual polypropylene production capacity of 1,050 thousand tons, with four industrial plants in the U.S. and Germany. The two plants located in the U.S., at Freeport and Seadrift add up to 505 thousand tons, increasing Braskem's polypropylene capacity by 50 percent in the region. Braskem already has two plants in Germany, at the petrochemical complexes of Wesseling and Schkopau, which have an annual capacity of 545 thousand tons of polypropylene.
"The acquisition of Dow's PP assets positions Braskem as the leading producer of polypropylene in the U.S., the world's largest thermoplastic resin market, and it also enhances our current position in Europe, an important market for our biopolymers strategy, Braskem's CEO Carlos Fadigas said.
"In addition, as our 2nd acquisition in the US, this transaction will enable Braskem to capture approximately $140 million in synergies through a more diversified portfolio, a more leveraged fixed cost base and working capital, logistics and supply optimization", he also said.
The closing of this transaction is expected to happen by the end of the third quarter 2011 pending regulatory approvals.