In the second such move in two months, a U.S. supplier has announced its intent to buy an unsaturated polyester business in Europe.
Ashland Chemical Co. of Dublin, Ohio, on Sept. 8 reported it has reached an agreement in principle to purchase the unsaturated polyester business of Buna Sow Leuna Olefinverbund GmbH of Merseburg, Germany.
The deal, scheduled to be completed by year-end, would make BSL's unsaturated polyester unit part of Ashland's Composite Polymers Division. Ashland would manufacture BSL's Sconaran-brand resins at a site in Schkopau, Germany, according to a news release.
Ashland would not release sales, capacity and employment figures for BSL's unsaturated polyester business, according to an Ashland spokeswoman.
BSL, which was created in 1995 by merging three former East German chemical companies, is controlled by Dow Chemical Co.
In a related move, Dow on Sept. 10 announced it has reached a privatization agreement that would give Dow 80 percent ownership of BSL, with the rest being held by the German government. Dow has exercised economic control over BSL since 1995.
Ashland's move comes two months after Reichhold Chemicals Inc. in Research Triangle Park, N.C., announced its intent to acquire the unsaturated polyester business of Sandefjord, Norway-based Jotun Group.
Jotun Polymer would bring 400 employees — and 154 million pounds of resin capacity — into Reichhold's fold.
Financial terms of the deals were not disclosed.
Ashland Chemical, a division of Ashland Inc. of Ashland, Ky., reported $3.7 billion in sales for 1996.
Reichhold is owned by Dainippon Ink and Chemical of Tokyo.