October 15, 2020
ARLANXEO is selling its Sarnia-based olefins business to Mitsubishi Corporation.
An agreement between ARLANXEO Canada, a subsidiary of the Saudi Arabian Oil Company, and Diamond Petrochemicals Canada, a subsidiary of Japan’s Mitsubishi, was announced in a news release Wednesday.
ARLANXEO’s olefins unit is located at the bio-industrial park on Vidal Street South and produces butadiene and raffinate.
Spokesman Peter West said Mitsubishi expects to continue the operations in Sarnia.
“Olefins operations in Sarnia are expected to continue with all existing employees transferring from ARLANXEO to Mitsubishi,” said West. “The ARLANXEO butyl unit is not part of the agreement, and will continue all current production activities.”
West said he’s not at liberty to say how many Sarnia employees are affected by the agreement.
ARLANXEO said the olefins business no longer fits its strategic focus, but both companies are confident that under Mitsubishi’s ownership, the business will develop and grow in the future.
The transaction is expected to close in the first half of 2021, and is subject to customary closing conditions, including required regulatory approvals.