Norsk Hydro has entered into an agreement to sell its polymers activities to the UK–based chemicals company Ineos for approximately €670 million.
The deal with Ineos is in line with Hydro’s strategy to focus on aluminium and power production and divest non-core assets.
With production facilities in Norway, Sweden and the UK, Hydro’s polymers unit, which was recently named Kerling, is a major player in the northern European market for the plastics raw material polyvinyl chloride (PVC), the intermediary product vinyl chloride monomer (VCM) and caustic soda used primarily in the Nordic pulp and paper industry.
Kerling consists of 1,200 staff and production facilities in Norway, Sweden and the United Kingdom. The business also has interests in joint ventures in Norway, Qatar and China and a shareholding in the Portuguese PVC producer Cires,.
Ineos comprises 68 manufacturing facilities in 17 countries worldwide. Ineos employs around 15,000 people and has annual sales of more than $33 billion.