Saudi Basic Industries Corp. is acquiring the European plastics and base chemicals business of Huntsman Corp. for $700 million.
The deal, announced Sept. 28, includes two plants, in Wilton and North Tees, England. They employ 830.
Once the deal is complete, Riyadh-based Sabic intends to complete construction of an 882 million-pound-capacity, low density polyethylene plant in Wilton. The project will cost $150 million and should be complete by the end of 2007, officials said.
The acquisition marks a significant step in Sabic's plans to grow globally, beyond its operations in Saudi Arabia.
The Huntsman plants include an ethylene and propylene cracker and aromatics facilities.
Huntsman's polyurethanes and pigments operations in Wilton are not included in the deal. Huntsman is based in Salt Lake City.