Ontario, Canada – Arlanxeo Canada has agreed to sell its olefins business to Diamond Petrochemicals Canada Corp., a subsidiary of Japan’s Mitsubishi Corp.
The olefins business produces butadiene and raffinate, and is located at the Bio-Industrial Park Sarnia in Ontario, Canada, said Saudi Aramco-owned Arlanxeo in a statement 14 Oct.
The Dutch-based synthetic rubber major said the olefins business ‘no longer fits in with its strategic focus,’ but did not elaborate further.
Mitsubishi is expected to continue operations in Sarnia, with existing olefins employees transferring to the Japanese group.
The transaction, the financial details of which were not disclosed, is subject to customary closing conditions and is set for completion in the first half of 2021.
Arlanxeo has butadiene production capacity of 120 kilotonnes per annum (ktpa) at Sarnia, where it also operates a 150ktpa butyl rubber facility.