By Nicety Machine | April 6, 2026
Image: Unsplash
Overview
Saudi petrochemical giant SABIC has agreed to sell its Engineering Thermoplastics (ETP) business across the Americas and Europe to Munich-based investment firm Mutares SE & Co. KGaA in a deal valued at $450 million. The transaction, announced January 8, 2026, is the largest in Mutares’ history and is expected to close in the second half of 2026, pending regulatory approval. It is part of a broader $950 million dual-divestiture by SABIC, which simultaneously sold its European Petrochemicals business to fellow Munich firm Aequita for $500 million.
What Is Being Sold
The ETP business being transferred to Mutares is a substantial industrial platform. It includes:
- Eight production facilities across the Americas and Europe
- ~2,900 full-time employees
- ~1,085 KT of resin production capacity and ~780 KT of compounding capacity
- ~$2.5 billion in annual revenues
- Key product lines: Polycarbonate (PC), Polybutylene Terephthalate (PBT), and Acrylonitrile Butadiene Styrene (ABS)
- Globally recognized brands: LEXAN™, CYCOLOY™, VALOX™, and CYCLOLAC™
- Manufacturing sites in Bay St. Louis, Mississippi and Burkville, Alabama
The business holds an exceptional competitive position — it is the world’s second-largest producer of polycarbonate and the sole U.S. producer of PBT.
Why SABIC Is Divesting
SABIC frames the move as portfolio optimization. The company has struggled in Europe due to elevated production costs, and has previously shut down ethylene capacity at Teesside and Geleen. The divestitures are part of a Portfolio Optimization Program running since 2022.
"This strategic approach allows us to actively reshape our portfolio and sharpen our focus on areas where SABIC has clear and sustainable competitive advantages in a rapidly changing landscape," said SABIC CEO Abdulrahman Al-Fageeh. Industry analysts note the timing reflects a difficult market cycle, with overcapacity and a higher regulatory burden in Europe making the divestiture financially logical.
The sale also marks a reversal of SABIC’s acquisition of the former GE Plastics in 2007 — a deal that cost $11.6 billion — with these assets now changing hands at a fraction of that price.
What Mutares Gets
For Mutares, this deal is transformational. It establishes a brand-new Chemicals & Materials strategic segment for the firm and gives it control of a high-volume, globally recognized thermoplastics operation. The deal also includes an earn-out provision by which SABIC will participate in the business’s performance over the next four years.
Johannes Laumann, CIO of Mutares, called it "a milestone in Mutares’ corporate development," citing the ETP Business’s geographic footprint, premium brands, and technological depth as the foundation for building "a leading platform in advanced materials and specialty chemicals."
Implications for the Engineering Plastics Supply Chain
This transaction reshapes the ownership landscape of engineering thermoplastics in the Western Hemisphere and Europe. For manufacturers, compounders, and processors — including those relying on plastic mixing and compounding equipment — continuity of supply under new ownership will be a near-term priority.
The acquired brands (LEXAN™ PC, VALOX™ PBT, CYCLOLAC™ ABS) are staple resins in automotive, electrical & electronics, healthcare, and building & construction applications. Buyers of these resins should monitor transition timelines and any changes in supply agreements as the deal moves toward close later in 2026.
The deal also signals continued consolidation in the engineering plastics sector, with investment firms increasingly acquiring industrial chemical assets that larger petrochemical majors are choosing to exit.
