Arlanxeo Canada, a subsidiary of the Saudi Arabian Oil Company (Saudi Aramco), and Diamond Petrochemicals Canada, a subsidiary of Japan’s Mitsubishi, have announced the execution of an agreement between the companies, where Arlaxeo will sell its olefins business to Mitsubishi Corp.
Arlanxeo’s olefins unit is located at the bio-industrial park Sarnia in Ontario, Canada and produces butadiene and raffinate.
Spokesman Peter West said Mitsubishi expects to continue the operations in Sarnia.
“Olefins operations in Sarnia are expected to continue with all existing employees transferring from Arlanxeo to Mitsubishi,” said West. “The Arlanxeo butyl unit is not part of the agreement, and will continue all current production activities.”
Arlanxeo said the olefins business no longer fits its strategic focus, but both companies are confident that under Mitsubishi’s ownership, the business will develop and grow in the future.
The transaction is expected to close in the first half of 2021, and is subject to customary closing conditions, including required regulatory approvals.