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New York-based SI Group has agreed to terms with TPC Group for the purchase of a 10-acre chemical manufacturing plant in Baytown. The asset includes manufacturing assets for nonene, tetramer and other propylene products. The site employs 20 TPC operators who are expected to become SI Group employees overseen by the company's Freeport manufacturing plant.
The sell-off is part of new CEO Ed Dineen's plan to create more than $100M in earnings and/or liquidity improvements year-over-year. “One key element of this plan was the sale of non-core assets of which the Baytown assets were the most leveraging components,” Dineen told the Houston Business Journal.
On the flip side, SI Group CEO Frank Bozich has executed four acquisitions since coming on board three years ago. The move for the plant is an effort to shore up SI group's supply chain. "By acquiring the plant," Bozich said, "SI Group gains more control over raw materials," which allows his company to assure customers there are no concerns they will run short. [HBJ]
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