(Bloomberg) -- French oil major TotalEnergies SE and Saudi Basic Industries Corp. are considering selling a jumbo US plant that make chemical ingredients used for everything from plastic packaging to disposable cups and insulation, people familiar with the matter said.
Total and Sabic are working with an adviser to prepare the sale of the styrene and polystyrene production lines in Carville, Louisiana, which together could fetch at least $1 billion, said the people, who asked not to be named discussing private information. Work is at an early stage, and the companies may eventually decide to keep the plant, the person said.
A representative of TotalEnergies declined to comment. Sabic, Saudi Arabia’s biggest chemical maker, didn’t respond to a request for comment.
The French energy giant and the Saudi group jointly own the styrene production plant in Carville, which has a capacity of 1.2 million tons a year, according to TotalEnergies’ annual report. Total fully owns the polystyrene unit. Together, they are the world’s largest styrene and polystyrene facility, according to TotalEnergies’ website.
Read more: Plastic Treaty Talks Will Test World’s Ambition to Tackle Waste
The French company has invested to upgrade production sites for other chemical products in the US in recent years, while it’s building an $11 billion petrochemical project in Saudi Arabia with Aramco. It’s also transforming some refineries in France into biofuel plants; it recently sold some French chemical assets to Ineos Group.
Read more: Top Saudi Chemical Firm Reports Loss After Steel Unit Sale
--With assistance from Fahad Abuljadayel.
©2023 Bloomberg L.P.