Total to shed Chinese polystyrene business

Total SA has agreed to sell its polystyrene business in China to Ineos AG subsidiary Ineos Styrosolution.

The deal includes Total’s production plants in Ningbo, Zhejiang Province, and in Foshan, Guangdong Province, each with a polystyrene production capacity of 200,000 tonnes/year, Total said.

The deal comes amid a highly competitive polystyrene market, in which Total considers it does not have the required critical mass in China, unlike its positions in Europe and the US, the company said.

Following close of the transaction, however, production from a unit at the Ningbo plant that manufactures polypropylene compounds for automotive parts will be exclusively dedicated to Total.

“The sale is in line with our active portfolio management strategy,” said Bernard Pinatel, Total’s president of refining and chemicals.

Total’s polystyrene business will now be focused instead on Europe and North America, Pinatel added.

Ineos Styrolution has already made clear commitments to maintain the business and jobs and meet ongoing commitments to existing customers.

Total disclosed neither a timeframe nor financial details of the proposed transaction, which remains subject to approval by relevant regulatory authorities.

Contact Robert Brelsford at [email protected].