Brussels-Based Firm Agrees to Trade Deer Park, Texas, Propylene Plant to BP.

Byline: Nelson Antosh

Dec. 21--Brussels-based Solvay S.A. has tentatively agreed to trade a Deer Park plant that has the capacity to make 800 million pounds of polypropylene a year to BP.

It also has agreed to enter into a joint venture with the British company on its high- density polyethylene plant in Deer Park. That facility has the capacity to produce 1.9 billion pounds of polyethylene a year.

What is to this point a memorandum of understanding also covers plants in Europe: Solvay is swapping its polypropylene business for BP's engineering polymers business.

The financial details are to be announced during the second quarter. The deal is expected to close in June.

Polypropylene is commonly used in automobiles, as under-the-hood parts and the flexible front ends or bumpers. High-density polyethylene is used for milk jugs, water bottles and the like.

Solvay's polypropylene plant in Deer Park was built in 1978 and expanded since, said Ed Buckingham, counsel for Solvay America. Solvay Polymers is based in Houston.