BP last week announced a new name for its olefins and derivatives business, which it plans to spin off later this year. In preparation for that move, BP on Friday will establish a wholly owned subsidiary named Innovene.
The new company will be based in Chicago, will have assets of more than $9 billion and annual sales of more than $15 billion, making it one of the worlds five largest chemical suppliers. It will employ more than 8,500 people at 26 major facilities around the globe.
The company is one of the worlds two largest producers of linear alphaolefins (the other being Chevron Phillips Chemical Co.) with plants in Feluy, Belgium, in Joffre, Canada, and in Pasadena, Texas. It previously announced plans to close the Pasadena plant by the end of this year. It uses some of its LAO to make polyalphaolefins used as premium base stock by the lubricants industry.
The new company also produces ethylene and propylene, derivatives such as polyethylene and polypropylene, acrylonitrileand solvents, as well as gasoline, diesel and other refined products.
BP first announced its plan to dispose of the unit in April 2004 and has said it will consider an initial public stock offering or a direct sale. The company aims to execute the sale during the second half of this year, although it will be subject to regulatory approvals.
BP said it chose the name Innovene based interviews and research conducted among the companys employees, customers and industry analysts worldwide.