Materials

Plastic manufacturer Borealis is to sell its Bamble, Norway-based petrochemical business to Ineos for £196m (EUR290m).

The acquisition includes a 175,000-tonne-per-year polypropylene (PP) production unit and a 140,000 low-density polyethylene (LDPE) unit.

“The sale of our Norwegian polyolefins business is another step to increasing the overall competitiveness of our European operations,” said Borealis chief executive John Taylor.

He also announced that Borealis will create a new independent innovation company to take over its innovation centre in Bamble and will retain the existing group support functions at the location as a separate unit.

Some 290 of Borealis’ 450-strong workforce are affected by the sale. The remaining staff will be employed by the newly formed innovation company or provide support to the group.

The sale is expected to be cleared by the EU competition authority in the third quarter of 2007.