DANBURY, CONN.-Union Carbide Corp. of Danbury confirmed June 1 that it made an offer to buy Shell Oil Co.'s U.S. polypropylene business assets. The assets include Shell's PP manufacturing facility in Norco, La., and half of Seadrift Polypropylene Co., a joint venture shared by Shell and Union Carbide.
Shell agreed last year to divest its U.S. PP business units in an agreement with the Federal Trade Commission related to the merger of Shell's worldwide PP business with Italy's Montedison that formed Montell Polyolefins.
Seadrift, which uses Union Carbide's proprietary Unipol process, can produce 300 million pounds of PP a year, while Shell's Norco facility can produce 340 million pounds of PP a year.
Union Carbide said it has started its due diligence investigation into Shell's business.