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BP says exploring sale of Alabama petrochemical plant

BP Plc said on Tuesday it was exploring the sale of a petrochemical plant in Decatur, Alabama as part of a restructuring of its petrochemicals business.

The announcement comes a month after BP announced a third round of spending cuts and asset sales as it attempts to deal with extended period of low oil prices and raise cash to help fund its $54 billion U.S. oil spill settlement.

The company said the plant, which makes purified terephthalic acid (PTA) used in flat screen televisions and high-strength tire cord, no longer fitted with its strategy of focusing on world-scale, low-cost facilities.

BP said it was spending $200 million to cut costs at PTA-producing plants in Cooper River, South Carolina and Geel, Belgium. (http://on.bp.com/1YeTFhj)

The Alabama plant, which has a workforce of more than 400, can produce 1 million tons of PTA per year, the company said.

BP’s shares were up 2.6 percent at 378.1 pence on the London Stock Exchange at 1510 GMT.

In related news, Last defendant pleads not guilty in major BP fraud case.

(Reporting by Mamidipudi Soumithri in Bengaluru; Editing by Ted Kerr)

This article was from Reuters and was legally licensed through the NewsCred publisher network.