Viva Energy Group Limited (the Company) announces that it has agreed to acquire LyondellBasell Australia (LBA), a Geelong-based national polymer manufacturer and distributor which has its production facility located inside the footprint of Geelong Refinery.
This will be a key step in the development of the Company’s Energy Hub.
LBA is the country’s only polypropylene manufacturer, supplying the Australian and New Zealand market with raw material for the production of diverse plastic products ranging from food packaging and medical equipment to polymer bank notes, and serving more than 60 customers across Australia, New Zealand, Asia, India, the Middle East and North America. The business is strongly complementary to Viva Energy’s refining operations, with the refinery’s propylene production utilised as the feedstock in LBA’s existing manufacturing operations.
LBA has a strong market position, manufacturing and importing a range of polymers with both broad market use and specialist applications. The acquisition broadens the scope of Viva Energy’s manufacturing capability, and further diversifies our product mix and marketing opportunities. The business has good fundamentals and a solid operating model, with potential for growth. LBA employs approximately 100 people across manufacturing, supply chain and marketing operations, and the production facility at Geelong plays an important role in the optimisation of the Geelong refinery.
Viva Energy CEO Scott Wyatt said, “This acquisition is another step in the development of our Geelong Energy Hub and the further diversification of our Commercial and Industrial businesses. This facility and its manufacturing capability are vital to the economies of Victoria and Australia, and can have important roles to play in Australia’s circular economy through the recycling of plastics. The acquisition of this business opens the door for innovation and the development of new business opportunities.”
LBA Managing Director Mitchell Killeen said, “LBA has a proud operational and trading history in Geelong and Australia, and we are excited to see this continue under Viva Energy’s ownership. As part of the transaction, we have agreed that Viva Energy will become our local distributor and we look forward to working with them. Just last month, Prime Minister Scott Morrison identified plastics as one of seven key manufacturing sectors of national interest. This business has an important role in Australia’s future.”
The transaction is for 100% of LBA through a share sale. The long-term business arrangements will deliver value for both Viva Energy and LyondellBasell.