BP and H&R WASAG AG announced today that they have reached agreement in principle for H&R WASAG to purchase BP’s European Special Products business, including the Neuhof base oil refinery in Hamburg, Germany.
Subject to a number of approvals, H&R WASAG will acquire BP’s entire special products business in Europe which produces and markets specialist products such as waxes, process oils and rubber additives.
The transaction comprises the 5,000 barrels a day capacity specialist base oil refinery at Neuhof and part of the associated blending facilities; two UK manufacturing plants at Chorley, Lancashire and Tipton, West Midlands; a manufacturing plant near Maastricht, the Netherlands; and marketing operations in Spain, Portugal, Benelux, Germany, Eastern and Northern Europe and the UK.
The deal does not include BP’s shareholding in the Spanish Lubrisur joint venture or the Neuhof North blending plant which will continue to be core to BP’s automotive, industrial and commercial lubricants business.
In addition BP will supply H&R WASAG with 200,000 tonnes of special products a year from the Coryton refinery in the UK.
BP and H&R WASAG said in a statement that that they hope to complete the transaction early next year. No job losses are expected following the transaction.