BP Sells Alabama Petrochemical Complex To Indorama Ventures Public Company
BP Plc is selling its petrochemical plant situated in Alabama to a Thailand based company, Indorama Ventures, while reorganizing its business.
BP PLC has made an agreement to sell its petrochemical complex situated in Alabama to a business from Thailand, Indorama Ventures Public Company. The amount and money involved in this deal has not yet been revealed. The London based oil company has taken this decision in order to reorganize its international petrochemical business and improve its profit and growth.
The Oil and Gas Company is changing its business model and strategy in terms of its international business of petrochemical. It also sold its 50 years old complex in November, located in Decatur. The head of the business, Luis Sierra, made a statement saying, “We are grateful to our employees who have made the Decatur facility a safe, reliable, and valuable contributor to BP’s business for so many years. We believe this agreement with an established global industry leader such as Indorama Ventures provides a compelling future for those employees, the site and the community of Decatur.”
This recent deal between the London-based Oil Company and Thailand-based Indorama also includes a similar infrastructure and some similar suppliers and customers. The petrochemical complex manufactured chemical utilized in the producing items, such as plastic water bottles, flat-screen TVs and many other products. It can also produce 1 million tons every year of purified terephthalic acid, which is used in making polyester. According to the oil company, the complex is the only one that can manufacture naphthalene dicarboxylate.
BP’s agreement with Indorama enabled the Thailand-based business to purchase the Decatur complex and the working capital. Employees luckily will not lose their job but will simply get a new owner. The oil organization is investing $200 million in order to upgrade its Cooper River S.C, and Geel, Belgium. These sites provide the largest production in Europe and America. This investment by the business is being done with the hope that it will aid in lowering operating costs, reduce emissions, and even improve the reliability.
The natural gas organization has also reached a completion of a $10 billion divestment program in the 2014 and 2015 and is expecting $3 to $5 billion divestments this year. In 2017, the expectations of divestment are $2-3 billion. This deal will help the organization to cut extra cost and save expenditures, since the oil and gas industry has repeatedly been reported to fall down hurting many corporate giants in the business. BP is protecting itself from this harm as much as possible.