US-based chemical producer Dow on Monday said it would divest rail infrastructure assets and related equipment at six petrochemical complexes in the US and Canada to logistics firm Watco for $310 million. The transaction is expected to be finalized in Q4, subject to customary closing conditions. Dow CEO Jim Fitterling said the deal is part of the company’s efforts to expand core businesses by shedding “non-product producing assets” to reduce its debt loads.
Dow and Watco will also enter long-term service agreements, the chemical maker said. Under the contract, Dow will continue to use the infrastructure with Watco as the owner and operator. Fourteen Dow employees and around 400 contractors will transition to Watco.
The rail is used to load resins and chemicals onto rail cars for deliveries to customers, warehouses for packaging, and ports for export. The deal covers infrastructure at Dow’s complexes in Freeport and Seadrift, Texas; Plaquemine and St. Charles, Louisiana; and Fort Saskatchewan and Prentiss in Alberta, Canada.
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Published on July 7, 2020 12:47 PM (GMT+8)Last Updated on July 7, 2020 12:47 PM (GMT+8)
