28 September 2012
Details
BP
has agreed to sell all interests in
purified terepthalic acid (PTA) production in Malaysia to
Reliance Global Holdings Pte. Ltd. (Reliance)
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The ageement concerns BP's 100 per cent equity in
BP Chemicals (Malaysia) Sdn Bhd (BPCM)
located at Kuantan on the east coast of Malaysia
BPCM's PTA plant, commissioned in 1996
has nameplate production of 610,000 tonnes per year.
Reliance has agreed to purchase BP's interest in BPCM
for US $ 230 million in cash and
both parties anticipate completing the transaction in 2012
The $ 230 million in cash includes
- the net value of working capital and cash, estimated at a
Malaysian Ringgit to US Dollars exchange rate of 3.1
- The final value will be determined by prevailing
Ringgit exchange rate before completion of the sale.
All current staff of BPCM are expected to transfer to
the new owner under equivalent terms and conditions.
BP's acetic acid manufacturing and marketing business
in Malaysia is unaffected by this sale.
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BP and PTA Business strategy
- BP has a global, major PTA business with around
one fifth of global PTA production capacity and
a track record of leading technology
- BP will continue to concentrate PTA strategy
on deploying new technologies into high growth markets like
1. China where BP is in the middle of considerable
expansion programme and
2. OECD markets where BP's technologies give an
advantage and high utilization rates.
- BP is also building new revenue stream by
licensing PTA and Paraxylene technologies
- BP's current net global PTA capacity is
7.5 million tonnes per year from 8 sites in
- USA (2)
- Belgium
- China
- Indonesia
- Taiwan (2)
- The largest is at Zhuhai, China where expansion of its
current capaciyt of 1.5 million tonnes per year is expected
to add a further 1.25 million tonnes per year by 2014,
making its one of the world's largest PTA manufacturing sites.
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BP in Malaysia
- BP has a 70 per cent interest in a 560,000 tonnes per year
acetic acid plant in Kertih.
- A lubricant plant at Port Klang
- and markets lubricants in Malaysia under two brands.
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