Sunoco Sells Chemicals Business, Pares Operations |
Bloomberg - Feb 1, 2010 |
Sunoco Inc., the largest U.S. refiner on the East Coast, will jettison its chemicals division, which hasn’t turned a profit in three quarters, and permanently close its Eagle Point refinery in New Jersey because of weak demand for refined products.
Sunoco, based in Philadelphia, will sell its polypropylene business to Brazilian chemicals company Braskem SA for $350 million, concluding a yearlong process to divest the plants. Sunoco will record a $185 million to $195 million first-quarter pretax loss on the sale, according to a statement today. The company also shut its 145,000-barrel-a-day Westville, New Jersey, plant which it idled late last year.
Chief Executive Officer Lynn Elsenhans will conserve cash with the two moves at a time when Sunoco’s core oil-refining business has lost almost $200 million in two quarters, after the recession cut demand for gasoline, diesel, and other refined products.
Read Full Article from Bloomberg
- Posted: 2010-02-01 11:11:03
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