Sunoco says it's selling its Frankford phenol and acetone manufacturing plant, plus inventory, to Honeywell for $85 million. Some 162 Sunoco workers and a handful of headquarters workers "will be going with the sale," said Sunoco spokesman Thomas Golembeski. Honeywell will honor the Steelworkers union contract for the site. Statement here.
Honeywell, based in Morristown, NJ, "views this as a strategic acquisition that secures a long-term, low-cost supply of phenol, a critical raw material for its Resins and Chemicals business that is currently in tight supply globally," says spokesman Peter Dalpe.
The deal "will help assure the long-term stable operation of (Honeywell) Resins & Chemicals’ Hopewell, Virginia facility" and meet US orders plus "high-growth" demand from Asia, he added. "This is also an opportunity to enter new end markets for phenol and acetone, chemicals produced at this Frankford facility."
It's the latest in a string of industrial-plant sales by Sunoco boss Lynn Elsenhans, who wants to get out of the chemicals business and concentrate on retail gasoline sales and pipelines.