Dow to divest its acetone derivatives business to Altivia
US commodity chemical company Dow has agreed to sell its acetone derivatives business to Altivia Ketones & Additives, an affiliate of Altivia Petrochemicals, for an undisclosed amount.
In addition to the Institute Industrial Park, the sale involves Dow’s acetone derivatives business and associated chemical manufacturing assets at Institute, West Virginia, US.
However, Dow with ownership of certain manufacturing assets will remain a tenant on the Institute site.
The deal will enable the Institute site to continue providing site infrastructure services to partners at the site.
Jim Fitterling – Dow CEO said: “This divestiture illustrates Dow’s disciplined approach to portfolio management with a best owner mindset.
“It is beneficial to both parties and, in the case of Dow, is directly aligned with our more focused portfolio and goal of driving a higher return on invested capital.”
Dow to sell its acetone derivatives business to Altivia. Photo courtesy of Dow.
The acetone derivatives business produces Ketones and Carbinols, used primarily in the coatings, adhesive and pharmaceutical industries.
Originally operated by Union Carbide, the 460-acre Institute Industrial Park became an industrial park in the mid-1980s and houses the acetone derivatives business as well as other Dow and DuPont businesses.
J Michael Jusbasche – Altivia CEO said: “Acquiring this facility and associated technology provides downstream expansion for ALTIVIA’s acetone production capacity and access to global markets, for acetone derivatives.
“Additionally, the Institute Industrial Park’s excess capacity of utilities and services provide options to install additional chemical production for a fraction of the cost of alternatives.”
Subject to customary closing conditions, the transaction is expected to be completed by the end of 2019.
Dow with pro forma sales of approximately $50 billion in 2018 operates 113 production plants across 31 countries and employs around 37,000 people.
Founded in 1986, Altivia currently operates three separate businesses — Altivia Petrochemicals, Altivia Specialty Chemicals, and Altivia Chemicals.