MOSCOW (MRC) -- Chevron Phillips Chemical, the petrochemical venture of US oil producer Chevron Corp. and refiner Phillips 66, has finalized the sale of its Chinese polystyrene business to Grand Astor Ltd., according to the company's press release.
In the deal, Chevron Phillips is selling its affiliate company Chevron Phillips Chemical (China) Co. Ltd., which owns a polystyrene plant located in Zhangjiagang, China.
"The polystyrene plant is a productive and valued asset, but as a standalone operation for Chevron Phillips Chemical in China, the company has determined the asset is not a strategic fit," said Dan Coombs, senior vice president of specialties, aromatics and styrenics for Chevron Phillips Chemical.
"We look forward to working with the buyer to enable a smooth ownership transition for both employees and customers," he added.
Chevron Phillips Chemical says it will maintain its long, committed presence in China and the Asia region through both local and regional manufacturing as well as its extensive marketing network, which provides value-added products to the region including polyethylene, polypropylene, alpha olefins, specialty chemicals, aromatics, engineering polymers and styrenics.
As MRC wrote previously, Chevron Phillips is exploring ways to expand in the Middle East, including building a new plant. The US partnership would consider setting up a site on its own or in a joint venture, and the "entire" region is under consideration.
Chevron Phillips Chemica, headquartered in The Woodlands, Texas (north of Houston), US,l is one of the world’s top producers of olefins and polyolefins and a leading supplier of aromatics, alpha olefins, styrenics, specialty chemicals, piping, and proprietary plastics. Chevron and Phillips 66 each own 50% of Chevron Phillips Chemical.
MRC