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BP and Solvay in polymers swap and joint venture

The engineering polymers operations of London-based BP Chemicals will be swapped for the polypropylene operations of Brussels-based Solvay. The two companies will also set up joint ventures in high-density polyethylene (HDPE) in Europe and the Americas. The transactions involve businesses with combined sales of $2.6 billion per year, the bulk of which are from HDPE, and the joint ventures will have combined sales of about $1.85 billion per year. In Europe, the HDPE venture will be a 50-50 operation; in the U.S., Solvay will hold a 51% stake and BP the minority share. The swap will boost Solvay's business in engineering polymers, where it will have annual sales of about $650 million, according to Solvay CEO Aloïs Michielsen. BP will add the Solvay polypropylene operations to those it already has from the dissolution of its Appryl joint venture with France's Atofina and from the equity share ...