Dow Sells Acetone Derivatives to Altivia
Dow has agreed to sale its acetone derivatives business to Altivia Ketones & Additives, an affiliate of Altivia Petrochemicals, a privately owned chemicals producer headquartered in Houston, Texas, USA. Financial terms of the sale, which is expected to close by the end of 2019, were not disclosed.
The deal includes production assets in Institute, West Virginia, along with site infrastructure, land and utilities. Dow said it will remain a tenant on the site and retain ownership of certain manufacturing assets.
“Acquiring this facility and associated technology provides downstream expansion for Altivia's acetone production capacity and access to global markets for acetone derivatives,” said the company's CEO, Michael Jusbasche. “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.”
Dow CEO Jim Fitterling added that the sale illustrates its “disciplined approach to portfolio management with a best-owner mindset”. He commented: “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.”
The acetone derivatives business manufactures ketones and carbinols, which are primarily used in the coatings, adhesives and pharmaceutical industries. Altivia said the Institute plant is the largest of its kind in North America.
Altivia produces acetone (and phenol) at its complex in Haverhill, Ohio. The company says it is the third-largest merchant supplier of phenol in North America behind Shell in Deer Park, Texas, and Ineos in Theodore, Alabama.