TotalEnergies and Sabic May Sell U.S. Styrene Plant

Styrene plant in Louisiana will be sold for estimated €900 million.

On November 22, French oil giant TotalEnergies and Sabic are considering selling large U.S. plants used to produce styrene and polystyrene, which produce plastic packaging, disposable cups, insulation materials, and other products.

TotalEnergies and SABIC are working with advisers to sell styrene and polystyrene production lines in Carville, Louisiana, for a total price of at least 900 million euros, Bloomberg reported. Work is in its early stages and the company may ultimately decide to keep the plant.

According to data from TotalEnergies' annual report, the two companies jointly own equity in the Cavell styrene plant, which has an annual production capacity of 1.2 million tons. The polystyrene unit of the plant is owned by TotalEnergies. The plant is also the largest styrene and polystyrene plant in the world.

In recent years, TotalEnergies has invested in upgrading other U.S. chemical production sites; converted some French refineries into biofuel plants; and built a petrochemical projects of 10 billion-euro facility in Saudi Arabia with Saudi Aramco, the world's second-largest company. The company recently sold some of its French chemical assets to Ineos.