The acquisition adds TPC’s Gulf Coast production network to Eneos’ operations, reinforcing butadiene manufacturing and broadening its U.S. Chemicals footprint.
Eneos Holdings, headquartered in Japan, has approved to acquire U.S.-based TPC Group, including the company’s Gulf Coast petrochemical production and terminal operations to its global C4 chemicals business.
Under the agreement, anticipated to close in October pending regulatory approvals, Eneos will acquire TPC’s petrochemical operations in Houston, along side terminal centers in Port Neches, Texas, and Lake Charles, Louisiana. The companies stated the transaction is supposed to reinforce Eneos’ position within the C4 value chain while supporting persisted investment in TPC’s production assets.
As per Eneos, the acquisition will provide the company the world’s third largest butadiene manufacturing capacity. TPC is one of North America’s largest manufacturers of C4 chemicals, together with butadiene, raffinate, 1-butene and polybutene.
The companies said integrating Eneos’ experience operating C4 chemical assets with TPC’s Gulf Coast production platform is supposed to reinforce supply capabilities and enhance responsiveness to changing market demand. Eneos also anticipates the acquisition to form closer incorporation between its C4 chemicals operations and downstream elastomer businesses, along with manufacturing of solution-polymerized styrene-butadiene rubber.
“This statement is a robust endorsement of TPC Group’s people, assets and capabilities, as well as vital role we play within the petrochemical value chain,” Ed Dineen, president and CEO of TPC Group, mention in a statement. “With Eneos, we can build on our robust foundation, assist persisted investment in our operations and furthermore reinforce TPC Group’s position for long-term success.”
TPC said there are no planned changes to every day operations, customers commitments or supplier relationships before the transaction closes. The company also mention its environmental, health, safety and security programs will persist to unchanged during the transition.
As per Eneos, the acquisition assists its approach of expanding its materials business in North America, where access to shale-based feedstocks and increasing demand provides long-term opportunities for C4 chemicals manufacturing. The company said reinforcing its U.S. Production base also will support address with reinforcing butadiene supply-demand dynamics in Asia at the same time as strengthening its worldwide supply chain for elastomer manufacturing.
