- Neste Oil divests its Portuguese subsidiary owning an ETBE plant in Sines to Repsol Polimeros LDA.
- The acquisition price is not disclosed.
- The Sines plant has an annual capacity of 50,000 tonnes.
- The plant was converted to producing ETBE at the beginning of 2005.
Divestment Details
Neste Oil has sold its Portuguese subsidiary, Neste Oil Portugal S.A., which owns an ETBE plant in Sines, to Repsol Polimeros LDA. The acquisition price has not been disclosed. This divestment is expected to have a minor positive impact on Neste Oil's second quarter results.
Plant Capacity and Production
The Sines plant has an annual production capacity of 50,000 tonnes. It produces ETBE (Ethyl Tert-Butyl Ether), a bioethanol-based gasoline component designed to enhance combustion and reduce tailpipe emissions. Originally, Neste Oil started MTBE production at the Sines plant in 1992, and the facility was converted to ETBE production at the beginning of 2005.
Strategic Focus
According to Mr. Matti Lehmus, Executive Vice President of Oil Products at Neste Oil Corporation, this divestment allows Neste Oil to concentrate on its strategic priorities. Repsol is well-positioned to develop the ETBE site as an integrated part of their Sines Petrochemical site.
