Sunoco Inc. (NYSE: SUN) reported Monday that the company will sell its chemical unit to Brazil's Braskem SA for about $350 million in cash, according to Associated Press.
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Sunoco is selling its subsidiary Sunoco Chemicals Inc., comprised of its polypropylene business, which makes plastics used in a variety of applications, including food containers, bike helmets and auto parts.
The sale includes manufacturing facilities in La Porte, Texas; Marcus Hook, Pa., and Neal, W.Va. Altogether these plants have the combined capacity to make about 2.1 billion pounds of polypropylene annually, or about 13 percent of installed U.S. polypropylene production capacity.
The sale also includes Sunoco's research and technology center in Pittsburgh.
The deal should close by the end of March. Sunoco expects it to result in a pretax loss in the first quarter of about $185 million to $195 million.
Meanwhile, Sunoco said it has permanently shut down its previously idled Eagle Point refinery in Westville, N.J., due to continued weak demand for refined products and tough market conditions. The refinery was idled in early November 2009.
Shares of Sunoco rose $1.55, or 6.2 percent, to $26.64 at Monday’s close. Braskem's U.S. shares rose 43 cents, or 3.1 percent, to $14.34.
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