Argentinian state-owned YPF's return to the downstream petrochemical segment with the purchase of polypropylene producers Petroken and Petroquimica Cuyo is close to being completed, a source close to YPF's business operations said Friday.
"The purchase of Petroken and Petrocuyo is in the process of closing," the source said, adding that YPF is hopeful it will be concluded shortly.
The moves by YPF mark its return to Argentina's downstream petrochemicals industry, which it left in 2005.
"It is expected to be completed before year-end," a source with Petroken said.
YPF in August said it would buy a 46% stake in Petroquimica Cuyo, or Petrocuyo, and 50% of Petroken from LyondellBasell with Grupo Invesor Petroquimica, or GIP. GIP and YPF each would have 50% stakes in Petroken.
Both deals would have YPF paying $122 million, YPF said in an August 18 statement. YPF declined to comment further on the deal Friday.
Petrocuyo's polypropylene plant is in Lujan de Cuyo, Mendoza province, adjacent to YPF's Lujan de Cuyo petrochemicals and refining complex, and produces 130,000 mt/year. Petroken's polypropylene plant --in Ensenada, Buenos Aires province -- has a production capacity of 180,000 mt/year.
