Montell Polyolefins of Hoofddorp, the Netherlands, announced Oct. 10 it intends to sell its European polyethylene businesses and half interest in a steam cracker in France to a new joint venture company. The sale will effectively remove Montell from the production of PE in Europe, and will leave the company with PE production capacity only in Lake Charles, La.
Montell produces 440 million pounds of linear low density PE and 40 million pounds of ultra-high-molecular-weight PE in Lake Charles.
A new joint venture company being formed by BASF AG of Ludwigshafen, Germany, and Royal Dutch/Shell Group of London and The Hague, Netherlands, will buy:
*Half of Montell's interest in a steam cracker at Aubette, France, that produces 924 million pounds of ethylene and 506 million pounds of propylene a year.
Montell will retain a 50 percent interest in the steam cracker and will continue to receive propylene from the cracker, company spokesman Greg Larson said. Larson spoke in an interview by telephone Oct. 10 from his office in Hoofddorp.
The new joint venture will use the ethylene produced at Aubette, Larson said. Shell is the operator of the steam cracker.
*Montell's LDPE production facilities at Carrington, England, and at Fos and Berre, France.
The LDPE facility at Carrington produces 374 million pounds of resin a year; the plant at Fos produces 242 million pounds of resin a year; and the plant at Berre produces 220 million pounds of resin a year, Larson said.
*Montell's 50 percent share of an LLDPE facility at Notre Dame de Gravenchon, France. The plant produces 704 million pounds of LLDPE a year. Montell shares ownership in that plant with Exxon Chemical Co. of Houston. Exxon operates the facility.
Montell said it expects the sale to be completed during the first half of 1997. Terms of the intended sale were not disclosed.
Larson said the sale does not include Montell's Spherilene PE production technology, nor its Spherilene pilot production facility in Ferrara, Italy.
The firm intends to keep the Ferrara and Lake Charles plants to support its PE technology licensing business, he said.