South African oil and chemicals group Sasol on Monday announced that it is considering the disposal of its Olefins and Surfactants business, excluding its co-monomers activities, in South Africa.
Sasol acquired Condea in March 2001 from German-based RWE Dea for €1,3-billion euro.
Most of the Condea business was subsequently hosted in Sasol Olefins and Surfactants with production facilities mainly in the United States, Europe and South Africa.
A smaller part of the business was hosted in Sasol Solvents, which, together with the South African-based solvents activities, formed a global solvents business.
Sasol said it is retaining its entire solvents business.
“Since the acquisition, substantial success has been achieved in reducing costs and improving the productivity at Sasol Olefins and Surfactants. Pleasing progress has also been made in strengthening relationships with key customers,” said Sasol deputy chief executive Trevor Munday.
“In 2003, Sasol determined that it would continue to grow its chemical businesses conditional upon projects leveraging its technology or securing integrated and highly cost-competitive feedstock positions.
“The Olefins and Surfactants business is only partially integrated upstream into feedstocks and has not adequately provided the integration benefits which Sasol requires,” said Munday.
Sasol has embarked on an international commercialisation programme of its gas-to-liquid (GTL) fuels technology, and possibly at a later stage its coal-to-liquid (CTL) technology.
“This is expected to require significant funding. The GTL and CTL ventures will support or enhance traditionally high margins achieved by Sasol as a consequence of its technology and operating prowess,” said Sasol chief executive Pat Davies.
“To optimally leverage both its talented people and financial resources in the next few years, Sasol wishes to establish the saleability of Sasol Olefins and Surfactants at fair value,” Davies added.
“During this process, Sasol will remain committed to the strategic and operational goals of Sasol Olefins and Surfactants and will continue to provide the business with the support necessary to uphold its effectiveness and success,” he said.
Deutsche Bank has been appointed by Sasol to assist in procuring offers, assessing the feasibility and attractiveness of the offers received and executing any potential transaction, Sasol said. — I-Net Bridge