LAKE CHARLES, Louisiana (AP) – A South African energy and chemicals company announced that it is promoting a 50% stake in 3 of its Louisiana plants to business.
Sasol Ltd. , which operates the Lake Charles plant, said it had signed an agreement to form a $2 billion joint venture with Houston-based LyondellBasell, according to a corporate statement.
LyondellBasell will gain stakes in 1. 5 mm sasol ethanol cracking plants and 0. 9 mm tons of low- and low-density polyethylene, which manufacture ethylene and polyethylene chemical compounds, The Advocate reported Friday.
The Houston-based company is expected to operate the joint ventures on behalf of the joint venture, which will be called Louisiana Integrated PolyEthylene JV LLC.
Sasol President Fleetwood Grobler called LyondellBasell an “ideal partner” for the company, while LyondellBasell CEO Bob Patel said the deal was a “unique opportunity” to combine the more productive of the two companies.
The agreement, which is subject to shareholder approval, is expected to be concluded until the end of this year. After the transaction is complete, the South African company says some of its 1,200 workers at the Lake Charles chemical complex will be hired through LyondellBasell. .
Sasol will continue to retain all of its Lake Charles Research and Development Center and other amenities on this site.