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[November 2000]
ATOFINA and BP Agree Appryl Demerger
ATOFINA and BP, partners since 1986 within their Polypropylene joint subsidiary Appryl, in which they have a 51% and 49% stake respectively, began discussions on the winding-up of the company at the beginning of 2000.
These discussions follow the latest developments in the light of the recent mergers, first between BP and Amoco in 1998, and later between TotalFina and Elf at the end of 1999.
The agreement will distribute the assets of Appryl as follows:In France: ATOFINA and BP will both have free access to the technology developed by Appryl.
ATOFINA will take over the assets and polypropylene activities related to the Gonfreville site, including resins and compounds supplied to the automotive industry. BP and ATOFINA will set up a manufacturing joint venture (50:50) at Lavera, operated by ATOFINA. Production of polypropylene from Lavera will be split between the two partners and ATOFINA and BP will each supply 50% of the propylene feedstock needed by the polypropylene unit.
Outside France:
BP will take over the assets and the polypropylene activities related to the Grangemouth site (Scotland), which began production in August 2000.
Subject to the approval of the appropriate authorities and consultation with personnel representatives, the companies expect the agreement to become effective at the beginning of 2001.
Details of the agreement are not being disclosed.
Web site: www.atofina.com
ENDS