Agreement in Principle for the Sale of Basell's 50% Share of Polibrasil PP Business to Suzano Petroquimica

SAO PAULO, Brazil, June 20 -- Basell and Suzano Petroquimica S.A. [Bovespa: SZPQ4 and Latibex: XSUPT] one of the largest strategic investors in the petrochemical sector in Brazil, announced today that they have reached an agreement in principle for the sale of Basell's 50% share of Polibrasil Resinas' polypropylene business to Suzano Petroquemica.

As part of the agreement, Basell will acquire Polibrasil's polypropylene compounding business, which produces advanced polyolefins primarily for the automotive industry.

Polibrasil operates polypropylene plants with a total capacity of 625 KT at three sites in Brazil and has a 25 KT compounding plant.

The closing of the transaction is subject to the conclusion and execution of the definitive agreements, among other conditions precedent.

According to Ian Dunn, President of Basell International, "We have valued working with Suzano over the years as a joint venture partner, and we wish Polibrasil a successful future under Suzano Petroquimica ownership. Brazil and South America remain important markets for Basell, and we will continue to be active throughout the region with our full product range in support of Basell's customers."

"The solid relationship between Suzano Petroquimica, Basell and their shareholders, carefully and respectfully built over the last years, was crucial for the implementation of this landmark transaction and will continue to be essential for the sustainable development of both companies," said Armando Guedes Coelho, COO of Suzano Petroquimica.