BP to pursue sale of equity in SPC, Korea

19-Jul-06

BP has decided to pursue a sale of the 47.41% equity interest held by it in its South Korean joint venture with Samsung, Samsung Petrochemical Co. Ltd. (SPC). SPC is one of Asia's leading producers of purified terephthalic acid (PTA - the preferred raw material to manufacture polyester) with a total production capacity exceeding 1.8 million tpa. SPC is currently owned by BP (47.41%), Samsung (47.41%) and Shinsegae (5.18%). SPC operates four PTA plants on two separate sites; Ulsan Petrochemical Complex and Daesan Petrochemical Complex. A difference in view between the two partners about SPC's future strategy has led to this decision. SPC is viewed a business with a solid performance track record and is well-positioned for continued growth. At this stage, BP believes if it is able to achieve an appropriate price, exiting is in the best interest of SPC and its shareholders. BP has a global PTA production capacity share of more than 20% excluding JV partner share, operating at 21 at sites located in Asia, the Americas and Europe with a total combined annual production capacity of more than 10 million tons (including JV partner share). BP remains firmly committed to maintaining its global leadership position in PTA, focusing on rapid deployment of new lower cost PTA technology. This is evident by its recent ground breaking on the new 900,000 tonne Zhuhai 2 unit in China, and the 350,000 ton expansion at Geel, Europe.