TPC to sell Baytown Operations to SI Group
US-based C4 hydrocarbons producer TPC has agreed to sell its Baytown Operations to SI Group, a manufacturer of chemical intermediates, specialty resins, and solutions.
Financial details of the deal have not been disclosed by the companies.
TPC Group chairman president and CEO Ed Dineen said: “In 2016, TPC Group has made great strides in our earnings and cash improvement plan, or ECIP, targeted to deliver more than $100m of year-over-year improvement.
“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.
“On behalf of the entire senior leadership team, we want to extend our sincere appreciation for the commitment, dedication, focus and safe operations by the Baytown employees.”
The transaction includes sale of manufacturing assets for nonene, tetramer, and other propylene derivatives, an on-site terminal, as well as excess land adjacent to the facility.
Nonene and tetramer are propylene oligomers used as intermediates in the production of plasticisers, detergents, lube oil additives, antioxidants, and other performance products.
SI Group president and CEO Frank Bozich said: “TPC Group and SI Group have had a longstanding partnership that extends beyond 25 years.
“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.
“We are committed to the successful integration of this business, as it's a vital component of our growth agenda.”
TPC sells its products into a wide range of performance, specialty and intermediate segments, including synthetic rubber, fuels, lubricant additives, plastics and surfactants.