Petrobras Sells Petrochemical Plant in Argentina

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Researched by Industrial Info Resources (Sugar Land, Texas)--Petrobras Energia, Petrobras' subsidiary in Argentina, sold 40% of its participation in Argentina Petroquimica Cuyo, a petrochemical plant in Mendoza Province. Admire Trading Company (Buenos Aires, Argentina), which already holds 50.5% shares of the plant, and Grupo Inversor Petroquimico (Petrochemical Investment Group) obtained the shares for the total amount of $32 million. The Cuyo petrochemical plant was founded in 1989 and has the capacity to produce 120,000 tons per year of polypropylene and derivates, resins used in industries pipes and automotive, among others. The company has faced some difficulties to expand its activities because of the lack of raw material and natural gas in Argentina. Petroquimica Cuyo's plant manager Jorge Sampietro said the low production capacity made it difficult for the plant to compete with most of the companies in the sector in the continent. For instance, Braskem and Polibrasil's production volumes surpass 500,000 tons per year.

In 2002, Petrobras Energia purchased Petroquimica Cuyo, Argentina's second propylene and polypropylene producer, from Perez Companc Company for $1 billion. The company is mainly supplied by YPF refinery Lujan de Cuyo in Mendoza Province, Argentina, which processes raw material provided by Petrobras. The plant utilizes Novolen technology (polymerization in gas phase), and is licensed by Novolen Technology Holding and controlled by ABB/Lummus Global.

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