Area plant will be sold in BP deal

Company announces Belgium-based chemical company will buy polymer business in asset swap

Web posted Wednesday, December 20, 2000

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By Damon Cline
Business Editor

BP Amoco announced Tuesday it will sell its engineered polymers business, including its 220-employee Augusta plant, to a Belgium-based chemical company by mid-2001.

Brussels-based Solvay SA, in exchange, will transfer its polypropylene business to BP Amoco in what amounts to a $2.6 billion asset swap.

The Augusta plant - along with facilities in Marietta, Ohio; Greenville, S.C.; and Alpharetta, Ga. - makes up about half the transaction.

BP Amoco officials say Solvay plans no major operational changes at the facilities.

``We expect they will extend offers to all our employees,'' Augusta plant manager Scott Savage said.

The 16-year-old Augusta plant, located in south Richmond County off Tobacco Road, produces more than 50 million pounds of pellet-sized, high-performance resins used in the manufacture of injection-molded products.

``It clearly illustrates Solvay's strategy of moving into ... growing, innovative, high-yield markets,'' Solvay Chief Executive Officer A. Michielsen said in a news release issued Tuesday.

BP Amoco wants to focus on selling products made from its own petrochemicals. Making polymers required the company to purchase raw materials from other companies.

Solvay's transfer of the polypropylene business will make BP the world's second-largest supplier. The deal also will allow the two companies to combine their high-density polyethylene business into a 50-50 joint venture in Europe and a 51 percent Solvay-controlled venture in the United States.

Polypropylene is often used to make container lids and drinking straws. Polyethylene is often used to make milk and water jugs.

``It's a business that can be highly integrated into ours,'' said BP Amoco spokesman Scott Dean.Solvay, one of the 100 largest European companies, posted 1999 sales of $7.9 billion.

Reach Damon Cline at (706) 823-3486 or bized@augustachronicle.com.

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