Borealis AS, Copenhagen, has acquired from Montell Polyolefins, Amsterdam, its 50% share in North Sea Petrochemicals NV (NSP), a Belgian polypropylene joint venture of the two firms.
NSP has capacity to produce 250,000 metric tons/year of polypropylene at Kallo near Antwerp. The operation will be renamed Borealis Kallo NV, and all 142 plant employees will transfer to the new company.
Montell and Borealis will continue to work together in 50-50 joint venture NSP Olefins NV, which operates a 400,000-ton/year capacity propane dehydrogenation unit and propylene/ splitter at the Kallo site.
The move is the latest in recent consolidation of Europe's petrochemical sector. Last year Montell sold its polyethylene business to a new joint venture of BASF AG and Shell International Chemicals Ltd. (OGJ, Oct. 21, 1996, p. 19).
At that time, Montell said pulling out of polyethylene would enable it to focus on polypropylene, where it is the world's dominant player with total capacity to produce 3.4 million metric tons/year.
Montell's rationale
Kees Linse, president of Montell Europe, explained that the latest move would enable Borealis to increase its polypropylene capacity without building a new plant, while Montell concentrates on a new plant to be built at Aubette in southern France.
"After 2000," said Linse, "we intend to supply our customers now supplied from NSP from our plants in the Netherlands, Germany, or the new plant at Aubette."
While Montell's Aubette plant is being developed, Borealis will continue to provide as much as 50% of polypropylene made at Kallo to Montell, under an agreement that extends to Jan. 1, 2000.
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