US petrochemical and gasoline producer Sunoco has reached an agreement to sell its phenol and acetone manufacturing facility in Philadelphia to Honeywell, Sunoco said Wednesday.
The company will sell the facility and the estimated inventories for about $85 million, basing the value of the plant's inventory on market prices at closing. The sale is expected to be complete in the third quarter, pending regulatory approval and customary closing conditions, Sunoco said.
"The sale of Sunoco's Frankford phenol manufacturing facility is another step in our efforts to unlock value for shareholders by divesting certain non-core assets and focusing on our retail and logistics businesses," said Sunoco Chairman and CEO Lynn Elsenhans.
The sale of the phenol facility follows a similar move last year. In April, Sunoco said it had completed the sale of its polypropylene manufacturing to Braskem for $350 million.
The transaction included manufacturing facilities in Marcus Hook, Pennsylvania; La Porte, Texas; and Neal, West Virginia, which have the combined capacity to produce about 2.1 billion lbs/year of polypropylene. The sale also included a research-and-technology center located in Pittsburgh.
