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State-led Saudi petchems giant Sabic this week announced that it has agreed to buy the 50% stake of Germany-based specialty chemicals firm Lanxess in their Arlanxeo synthetic rubber joint venture at a cost of €1.5bn ($1.74bn).
The Arlanxeo JV began operating on 1 April 2016, producing elastomers and engineering polymers with a combined capacity of more than 2mn t/y. Aramco paid Lanxess €1.2bn ($1.36bn) to take an equity share in a business unit operating 19 main manufacturing plants and a sheeting plant.
Lanxess’ original sale of equity in its synthetic rubbers business to Aramco was because of diminishing returns caused by new capacity being built in key former importing countries such as China ( MEES, 8 April 2016 ). (CONTINUED - 267 WORDS)