Arlanxeo Canada has agreed to sell its olefins business to Diamond Petrochemicals Canada Corp., a subsidiary of Japan's Mitsubishi Corp.
The olefins business produces feedstocks including butadiene and raffinate, and is located at the Bio-Industrial Park Sarnia in Ontario, Saudi Aramco-owned Arlanxeo said in an Oct. 14 statement.
The Dutch-based synthetic rubber major said the olefins business "no longer fits in with its strategic focus," but did not elaborate further.
Mitsubishi is expected to continue operations in Sarnia, with existing olefins employees transferring to the Japanese group.
Financial details were not disclosed. The transaction is subject to customary closing conditions and is set for completion in the first half of 2021.
Arlanxeo has butadiene production capacity of 120,000 metric tons per year at Sarnia, where it also operates a butyl rubber facility.