BP and Cytec Industries have signed a Definitive Agreement on the sale of BP’s carbon fibres business to Cytec.
BP and Cytec Industries have signed a Definitive Agreement on the sale of BP’s carbon fibres business to Cytec, which intends to operate the business as part of its Cytec Fiberite business unit.
The agreement includes assets and personnel associated with BP’s carbon fibres business. Facilities include manufacturing plants in Greenville and Rock Hill, South Carolina and research and development assets in Alpharetta, Georgia.
Cytec will continue to house personnel in Alpharetta for an interim period of time under a site lease agreement with BP.
The BP carbon fibre business had sales in the first half of 2001 of $17 million of which 50% were sales to Cytec Fiberite, a wholly owned subsidiary of Cytec Industries, primarily for aircraft brake and military aircraft applications. Cytec Fiberite uses the carbon fibre to reinforce an engineered resin matrix and produce a composite.
BP announced its intention to divest its carbon fibres business in April 2000 as part of the company’s strategy of concentrating on core oil, gas and petrochemical businesses. BP acquired the carbon fibre business as part of the merger with Amoco Corporation in 1998.
The companies expect to complete the transaction next month. Financial terms of the agreement were not disclosed.