In line with group strategy to shift its focus on downstream solutions, Dow Chemical (Midland, Michigan / USA; www.dow.com) has said it has closed the sale of its global polypropylene business to Brazilian petrochemical giant Braskem (São Paulo; www.braskem.com.br) – see also Plasteurope.com of 28.07.2011.

The USD 340m deal comprised Dow’s PP facilities in Schkopau and Wesseling, both in Germany, as well as its US plants in Freeport and Seadrift, both of which are located in the state of Texas. The two German plants have overall capacity to turn out 545,000 t/y, while the US facilities are capable of producing 505,000 t/y – as confirmed by a look at Plasteurope.com’s Polyglobe capacity database. As a result of the added capabilities, Braskem has now become the world’s third leading polypropylene producer, with a little more than 3.4m t/y, on the heels of LyondellBasell and Sinopec, but trailed closely by Sabic.

Commenting on the divestiture, Dow chairman and CEO Andrew Liveris said that, “This divestment is in line with our strategy to transform our Performance Plastics business to focus on downstream, technology-differentiated solutions. It also allows us to both reduce debt and liberate capital and resources for Dow’s higher growth, higher margin businesses.”