Neste Oil to divest its PAO-producing plant in Belgium
Neste Oil NV, a wholly owned subsidiary of Neste Oil Corporation, and an American petrochemical company Chevron Phillips Chemical International NV, a wholly owned subsidiary of Chevron Phillips Chemical Company LLC, have signed an asset purchase agreement. Based on the agreement, Chevron Phillips Chemical would acquire Neste Oil’s polyalphaolefin (PAO) production facilities, quality control laboratory, and the related maintenance services in Beringen, Belgium.
The transaction is expected to be closed within a few months and is subject to necessary closing conditions, such as competition authority approval. The transaction price is not disclosed. This divestment will have a minor positive impact on Neste Oil’s result.
Following the closing, approximately 40 Neste Oil’s employees will transition to Chevron Phillips Chemical. The rest of the company’s employees in Belgium will remain employed by Neste Oil, which continues its base oil customer service and supply chain management activities in Belgium. Until closing of the transaction, Neste Oil continues full scope of its PAO plant related business activities.
The plant in Beringen produces polyalphaolefins (PAO), Group IV base oils, which are the main component used in high-performance synthetic lubricants and premium motor oils. Neste Oil started its base oil production in Beringen in 1991.
“This divestment gives Neste Oil an opportunity to focus on the development of its high performance base oils business in those market segments which are growing strongly and where Neste Oil has distinct competitive advantages. Neste Oil’s focus is on very high viscosity index (VHVI) base oils where the company aims at becoming a leading supplier in the global market. Neste Oil’s sales of VHVI base oils will exceed 1.3 million tons annually by 2014 following implementation of growth projects in Bahrain and Abu Dhabi with its partners,” says Mr. Matti Lehmus, Executive Vice President, Oil Products and Renewables, Neste Oil Corporation.
Neste Oil in brief
Neste Oil Corporation is a refining and marketing company concentrating on low-emission, high-quality traffic fuels. The company produces a comprehensive range of major petroleum products and is the world’s leading supplier of renewable diesel. The company had net sales of EUR 11.9 billion in 2010 and employs around 5,000 people. Neste Oil’s share is listed on the NASDAQ OMX Helsinki.
Neste Oil has been selected into the Dow Jones Sustainability World Index and is also featured in the Ethibel Excellence Investment Register. The company is included in The Global 100 list of the world’s most sustainable corporations. Forest Footprint Disclosure (FFD) has ranked Neste Oil as the best performer in the Oil & Gas sector. Further information: www.nesteoil.com.
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