The Canadian subsidiary of Arlanxeo, the world’s largest producer of synthetic rubber, recently announced the sale of its olefins business to Diamond Petrochemicals Canada Corporation, a subsidiary of Japan’s Mitsubishi Corporation.
Arlanxeo, a wholly-owned subsidiary of Saudi Aramco, produces butadiene and raffinate through its olefins business, located at the Bio-Industrial Park Sarnia in Ontario, Canada. Mitsubishi expects to continue operations in Sarnia, with existing olefins employees transferring from Arlanxeo to Mitsubishi.
The olefins business no longer fits in with the strategic focus of The Hague-headquartered Arlanxeo. Both companies expressed their confidence that the business would develop and grow in the future under Mitsubishi's ownership.
The transaction is subject to customary closing conditions, including required regulatory approvals. Closing is expected in the first half of next year.