BP Plc will sell its purified terephthalic acid (PTA) production plant in Malaysia to India's Reliance Global Holdings Pte Ltd for US$230mil (RM713mil).
The agreement concerned BP's 100% equity in Kuantan-based BP Chemicals (M) Sdn Bhd (BPCM), British oil and gas giant said.
The transaction would be completed by the year-end, it said in a statement.
“This is an efficient plant with a good market position in the region,” said James Yim, head of BP's aromatics business in Asia.
“Recron Malaysia, part of the Reliance Group, is already our largest customer in Malaysia and Reliance Industries is a significant feedstock supplier at Kuantan, so Reliance is a natural owner of this plant,” he said.
Nick Elmslie, chief executive of BP Petrochemicals said that BP had a major, global PTA business, with around one fifth of global PTA production capacity and a track record of leading technology.
“Hence, BP would continue to concentrate its PTA strategy on deploying new technologies into high-growth markets like China where the company is in the middle of a considerable expansion programme,” he said.
BP's current net global PTA capacity is 7.5 million tonnes per year (mtpa). Its largest plant is in Zhuhai, China where expansion of its current capacity of 1.5 mtpa is expected to add a further 1.25 mtpa by 2014, making it one of the world's largest PTA manufacturing sites.
BP's acetic acid manufacturing and marketing business in Malaysia was unaffected by the sale, said BP. - Bernama
