Ludwigshafen, Germany and Singapore --BASF and Shell have reached an agreement for BASF to sell its share in the 50-50 jv ELLBA Eastern, Jurong Island, Singapore to Shell.
The joint venture, which is operated by Shell, produces styrene monomer and propylene oxide (PO). Financial details of the transaction were not disclosed. Closing is planned for December 31, 2014.
Yam-chew Oh, Shell's global external communications adviser – chemicals told UTECH-polyurethane.com the "buy-out enables integration with and optimisation of Shell’s existing asset base at Shell Jurong Island, and enables future growth.
"It allows us to improve competitiveness in a very difficult cost environment, and underlines our confidence in Asia, a key growth market for Shell.
"We are continually looking for investment opportunities which enable us to maintain a leading position in Asian markets, enhance our product offerings and improve our service levels to customers," he added.
In its press release, BASF said it remains globally committed to PO and its value chains. Therefore, as part of the agreement, BASF and Shell have signed a supply contract to provide BASF with the necessary volumes of PO.
ELLBA Eastern started production in 2002. The plant is fully integrated into the Shell site on Jurong Island, Singapore, and has an annual capacity of 250kT/year of PO and 550kT/year of styrene monomer.
The ELLBA jv between Shell and BASF in Moerdijk, the Netherlands, is not affected by the transaction, the BASF release said.