Sasol to Sell 50% Stake in Texas HDPE Plant

Sasol Ltd said on Tuesday it had agreed to sell its 50% interest in a high-density polyethylene (HDPE) manufacturing plant in Texas, to INEOS Gemini HDPE Holding Co for $404 million, to focus on specialty chemicals and cut down debt.

The South African petrochemicals company, the world’s top manufacturer of motor fuel from coal, has been restructuring its operations to cut down debt. Sasol’s total debt was 189.7 billion rand ($12.34 billion) for the year to June 30.

“Sale represents a further step in achieving Sasol’s strategic and financial objectives by accelerating the focus on specialty chemicals and reducing net debt,” the company said.

Last month, Sasol said chemical company LyondellBasell Industries had agreed to acquire a 50% stake in a unit of its U.S.-based business for $2 billion.

The Gemini HDPE plant in Texas, which became operational in 2017, is a joint venture between Sasol and U.S.-based petrochemicals, specialty chemicals and oil products manufacturer INEOS.

($1 = 15.3717 rand)

(Reporting by Shanima A in Bengaluru; Editing by Shounak Dasgupta)