Neste sells PAO production plant in Belgium to Chevron Phillips Chemical

Neste Oil has signed an asset purchase agreement to sell its polyalphaolefin (PAO) production facilities, quality control laboratory, and related maintenance services in Beringen, Belgium, to Chevron Phillips Chemical. The transaction includes the PAO production assets located in Belgium.

The deal is expected to close within a few months, pending regulatory approvals. The financial terms of the transaction have not been disclosed, but it is anticipated to have a minor positive impact on Neste Oil's financial results.

Approximately 40 Neste Oil employees working at the Beringen site are expected to transition to employment with Chevron Phillips Chemical upon completion of the sale. Neste Oil will continue to manage its base oil customer service and supply chain operations in Belgium.

The Beringen facility produces polyalphaolefins, which are a key component in high-performance synthetic lubricants and premium motor oils. Neste Oil began its base oil production in Beringen in 1991.

According to Neste Oil, this divestment will enable the company to focus on developing its high-performance base oils business in market segments experiencing strong growth and where Neste Oil possesses distinct competitive advantages, particularly in the area of VHVI (Very High Viscosity Index) base oils.