Finland's Neste Oil said Thursday it has received the green light to sell a Belgium petrochemical plant to Chevron Phillips Chemical International, enabling it to focus more on expanding its base-oil business.
Neste Oil said the competition authorities had approved the sale of its polyalphaolefin production facilities, quality control laboratory, and associated maintenance services at Beringen in Belgium to Chevron Phillips Chemical International, a unit of US petrochemical company, Chevron Phillips Chemical Company.
"Following the divestment, Neste Oil will concentrate on developing its high quality base-oil business in growth markets where Neste Oil has a clear competitive edge," Neste said in a statement.
Neste Oil said its goal is to become a leading supplier on the global market for Very High Viscosity Index base-oil, which it markets and sells under the NEXBASE brand.
Neste Oil is increasingly concentrating on refining and marketing low-emission, high-quality traffic fuels and says its sulfur-free NEXBASE base-oils help reduce exhaust and particulate emissions.
During 2011, Neste Oil's NEXBASE capacity has increased from 250,000 mt/year to 650,000 mt/year.
Neste Oil says its base-oil sales volume will rise further after end-2013, when a partnership with Abu Dhabi National Oil Company, or ADNOC, will increase NEXBASE base-oil capacity to nearly 1.3 million mt/year.
The plant in Beringen produces polyalphaolefins, Group IV base oils, which are the main component used in high-performance synthetic lubricants and premium motor oils.
Neste Oil started its base-oil production in Beringen in 1991.
