17 November 2015
DETAILS
BP has decided to market for sale its
Decatur, Ala., petrochemicals complex
as part of a broader reorganization of
the company’s global petrochemicals business.
BP’s refocused petrochemicals strategy
is pursuing a competitively advantaged portfolio
through world-scale, low-cost facilities
that utilize BP proprietary technology
including the production of
purified terephthalic acid, or PTA,
a key raw material in the production of polyester.
Tufan Erginbilgic,
chief executive of BP’s global downstream business
“BP’s world-leading technologies and global positions
allow us to compete in today’s highly competitive marketplace,”
“Our strategy is to significantly improve
the cash breakeven performance of the business,
enhancing earnings potential and making it more resilient
to bottom-of-cycle conditions.
We look to have a portfolio with BP’s world-leading technology
resulting in highly efficient production of PTA
in key markets around the world.”
BP is spending $200 million to upgrade
* its Cooper River, S.C., plant and its sister facility in
* Geel, Belgium –
the largest PTA-producing sites
in the Americas and Europe,
respectively.
The investment will enable the two facilities to
* lower operating costs,
* improve reliability and
* reduce emissions.
Earlier this year, BP also started up
* its new Zhuhai 3 unit in Guangdong Province, China.
Using BP’s latest technology and capable of producing
up to 1.25 million tons of PTA per year,
Zhuhai 3 is the world’s largest
single-train PTA production unit
as well as being one of the largest and most efficient
PTA production units in the world.
While BP’s Decatur complex no longer fits with this strategy,
the facility has been a major contributor to
BP’s U.S. petrochemicals business for many years.
It makes chemicals essential
for the production of thousands of items,
from plastic water bottles to flat-screen televisions. Located on 1,000 acres in Northern Alabama,
the complex can produce
* one million tons per year of PTA, as well as
paraxylene (PX), a raw material for PTA production.
The site also is the only commercial manufacturer of
naphthalene dicarboxylate (NDC),
a specialty chemical used in
new-generation polyesters and resins used to make
LCD flat-panel displays, ultra-thin data storage tape
and other products.
Of the five operating units on the Decatur site,
* three produce PTA,
* one makes PX and
* the other makes NDC.
Rita Griffin,
chief operating officer of BP Global Petrochemicals
“The decision to explore a sale of this facility
was not taken lightly.
It has been a significant part of our company
and of the Decatur community for a very long time,”
“We believe the site -- and its more than 400 employees --
would be a very attractive addition to
the portfolio of another operator.
We’re determined to find a buyer
who will recognize its value and
keep it a viable and vibrant part of the region
for years to come.” BP expects to complete
a sale of all or part of the facility
provided a buyer can be found and
an acceptable deal can be reached.
Further information:
BP Press Office: Houston
Phone: +1 281 366 4463
Email: uspress@bp.com
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