SI Group acquired TPC Groups Baytown, Texas facility, including manufacturing assets for nonene and tetramer, propylene oligomers that are used as intermediates in production of lube oil additives and other products.
About 20 to 25 employees work at the Baytown facility, said SI Group Spokeswoman Tara Morgan, and plans for whether they will move over to SI Group will be disclosed upon closing of the acquisition agreement. The agreement also includes an on-site terminal.
The nonene and tetramer materials are new products to SI Group, which had been purchasing them from TPC. We were a longstanding customer of TPC Group for 25 plus years, so this was a natural next step because it provides our customers with security of supply, which then translates to reliability for our customers, Morgan told Lube Report. She noted that the global market for the raw materials is in tight supply, so by our purchasing the Baytown facility, weve positioned ourselves both for security in supply but also for growth.
Tetramer is a raw material used in fuels and lubes as detergent. Morgan explained that while nonene is an intermediate used to make antioxidants for fuel applications, it also is used in demulsifiers for oilfield applications and fuels and lubes, aiding in separation of oil and water.
TPC Group said the sale was part of its earnings and improvement plan intended to deliver more than $100 million of year over year growth. One key element of this plan was the sale of noncore assets, TPC Group Chairman, President and CEO Ed Dineen said.
In 2014, SI Group acquired Albemarles antioxidants, ibuprofen and related business and assets, including a lubricant antioxidants line.