Taiwan's Lee Chang Yung Chemical Industry Corporation has paid $41m for the 50,000tpa plant

Taiwan's Lee Chang Yung Chemical Industry Corporation has paid $41m for the 50,000tpa plant

Italy’s Polimeri Europa has agreed to sell its 50,000tpa thermoplastic elastomer plant in the US to Taiwan’s Lee Chang Yung Chemical Industry Corporation for $41m (E34m).

Located at Baytown, Texas, the operation manufactures styrenic block copolymers, generating sales of some $60m (E50m) a year. It employs 87 staff. Bowei Lee, who heads the Taiwanese group, said the acquisition was part of its expansion programme and would complement its investments in China. Established in the mid-1960s, the company currently has TPE capacity of 140,000 tonnes; last year it generated profits of E11m on sales of E263m.

Vittorio Mincato, chief executive of Polimeri Europa’s parent ENI, said the deal was in line with the group’s strategy in the petrochemicals sector. He has previously said that the energy group is seeking to find buyers for the Polimeri business, which includes major polymer interests, primarily in Europe.