Colombian state oil company Ecopetrol has concluded a deal to acquire local polypropylene producer Propilco for US$690 mln. Propilco was previously held by the Stanford Group's Andean Chemicals and Valorem Group's PrimeFinanzas and PrimeOther.
Propilco has a production capacity of 380000 tpa polypropylene, with plans to expand capacity to 500000 tpa in 2010. It has annual sales of more than US$600 mln. 30% of feedstock is supplied from Ecopetrol refineries in Cartagena and Barrancabermeja, slated to increase in the coming years.
Propilco is the largest petrochemical firm in Colombia and is the biggest resin producer in the Andean region, Central America and the Caribbean, as well as being the main supplier of polypropylene domestically.