Solutia and JLM Industries, Inc. End Benzene to Phenol Commercial Agreement
Solutia Inc. (NYSE: SOI) today announced a mutual agreement with JLM Industries, Inc. (Nasdaq: JLMI) to end the commercial agreement to establish a new benzene to phenol plant. The site, which would have used Solutia's AlphOx BtoP technology, was to have been located at Solutia's Pensacola, Florida, facility.
The companies opted to stop plans for the production facility due to current dynamics in the global market for phenol. Both companies have agreed to pursue separate strategies for their business interests in the phenol area.
"Solutia started up a new phenol to KA oil facility at Pensacola earlier this year," said Mike Berezo, director of Nylon Intermediates at Solutia. "And we may certainly decide to explore benzene to phenol production in the future, should the market dynamics change."
"In light of the current imbalance in supply/demand for phenol, I certainly concur with the decision to defer this project and end JLM's involvement," said John Macdonald, chairman and CEO of JLM Industries, Inc. "We are pleased with our other ongoing commercial relationships with Solutia."
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