Sunoco completes sale of polypropylene business to Braskem SA for roughly $350 million
By APThursday, April 1, 2010
Sunoco completes polypropylene business sale
PHILADELPHIA — Petroleum refiner Sunoco Inc. said Thursday it has completed the $350 million sale of its polypropylene business to Brazil’s Braskem S.A.
Included in the sale of Sunoco Chemicals Inc. were manufacturing facilities in Marcus Hook, Pa., La Porte, Texas, and Neal, W.Va. The facilities have the combined capacity to produce roughly 2.1 billion pounds of polypropylene annually.
Polypropylene is a plastic used in packaging, carpets, stationery, lab equipment and automotive parts. Braskem said the deal makes it the third-largest producer of polypropylene in the world, with a capacity of 6.5 billion pounds per year.
The sale also included a research and technology center in Pittsburgh.
Sunoco said the deal generates capital it will invest in growing its core businesses.
Shares of Sunoco, based in Philadelphia, rose 96 cents, or 3.2 percent, to $30.67 in afternoon trading. Braskem stock picked up 32 cents, or 2.2 percent, to $14.79.
