BP Amoco to Acquire Bayer's Share of Erdoelchemie

BP Amoco plc (London, UK) will acquire full ownership of EC Erdoelchemie GmbH, a petrochemical facility near Cologne, Germany, by purchasing the 50% share held by Bayer AG (Leverkusen, Germany). Companies expect to complete the deal in early 2001, subject to approval by European regulatory authorities.

Located in Worringen, Erdoelchemie has total capacity of 4.2 million mt/yr, include 900,000 mt/yr ethylene, 560,000 mt/yr propylene, and 540,000 mt/yr polyethylene. The unit recently announced a 200,000 mt/yr ethylene expansion slated for mid-2002. Overall, the facility employs 2200 people and earned DM 106 million on turnover of DM 2.5 billion in 1999.

A production diagram of Erdoelchemie's Worringen facility.

"Our proposed acquisition of Bayer's shareholding clearly underlines the strategic importance of Erdoelchemie to BP Amoco," says BP Amoco Chemicals CEO Bryan Sanderson. He says the site's location fits well with BP Amoco's petrochemical derivatives plants at Geel and Feluy in Belgium and Marl in Germany.

When the deal is completed, Erdoelchemie will make BP Amoco Chemicals one of Europe's top three olefins producers and account for more than 10% of the company's total worldwide petrochemical capacity.

Edited by Alan S. Brown