BP and TotalFinaElf SA subsidiary Atofina have agreed on how to split up their joint polypropylene subsidiary Appryl, the companies announced Thursday. The companies began planning to withdraw from the subsidiary, formed in 1986, earlier this year. Appryl is owned 49% by BP and 51% by Atofina.
Atofina will take over Appryl's assets and polypropylene business in Gonfreville, France, including resins and compounds supplied to the automotive industry. BP will take over Appryl's assets and polypropylene business in Grangemouth, Scotland, which began production in August 2000.
BP and Atofina will set up a 50:50 manufacturing joint venture at Lavera, France, operated by Atofina. Lavera's polypropylene production will be split between the two partners. Atofina and BP will each supply 50% of the propylene feedstock needed by the polypropylene unit.
Atofina and BP will both have access to the technology developed by Appryl. The agreement is expected to be effective Jan. 1.
The dissolution was an aftermath of two mergers, first between BP and Amoco in 1998, and later between TotalFina and Elf at the end of 1999.
Details of the agreement were not disclosed.
