Oct 11 2004
Repsol YPF announced that its Chemicals Division has signed an agreement with Borealis A/S to purchase Borealis Polímeros Lda. that includes all assets of the petrochemical complex at Sines, Portugal. The completion of the transaction is subject to authorisation by the European Commission.
Based on 2003 capacities, the site comprises a cracker with a volume of approximately 350,000 tonnes of ethylene and 180,000 tonnes of propylene and two polyethylene plants, a low density plant with a production capacity of 145,000 tonnes and a high density plant of 130,000 tonnes.
This agreement strengthens Repsol YPF’s strategic lines and allows for new development in two core businesses, olefins/base petrochemicals and polyolefins. This purchase gives Repsol YPF stronger presence in European markets and complements its product portfolio with new applications currently not manufactured at the Puertollano and Tarragona complexes in Spain.
The implication of this deal is a 38% increase in Repsol YPF’s cracker production capacity. In addition, it means a 28% increase in production capacity in total polyolefins and a 55% increase in polyethylene.
Following the signing ceremony, Ramón Blanco, Repsol YPF’s Chief Operating Officer, noted, “This acquisition reflects the importance to Repsol YPF of its Portuguese clients and it highlights the increasing economic exchanges between both countries and the strength of their mutual business activities.”
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