Thread regarding ExxonMobil Corp. layoffs

June 30, 2021 08:00 AM Eastern Daylight Time
Source: Business Wire

IRVING, Texas--(BUSINESS WIRE)--ExxonMobil Chemical Company has signed an agreement with Celanese for the sale of its global Santoprene™ business for $1.15 billion, subject to working capital and other adjustments.

The sale includes two world-scale manufacturing sites in Pensacola, Florida and Newport, Wales along with associated product, process development and laboratory equipment, operating and administration buildings, control systems and documentation, and intellectual property.

“Reaching this agreement with Celanese is consistent with our strategy and allows us to focus on serving the growing market for primary olefin derivatives, where we can leverage our competitive advantages of industry leading scale, integration and proprietary technology,” said Jack Williams, senior vice president of Exxon Mobil Corporation.

ExxonMobil’s Santoprene™ brand is a global leader in a specialized market. The company will continue to serve elastomers customers with specialty products, including Butyl rubber and Vistalon™, which are used in a variety of applications.

The transaction is expected to close in the fourth quarter of 2021, subject to regulatory, information and consultation processes, and third-party approvals.

The ExxonMobil employees impacted by the sale are expected to transfer to positions at Celanese following change-in-control.

“Reaching this agreement with Celanese is consistent with our strategy and allows us to focus on serving the growing market for primary olefin derivatives, where we can leverage our competitive advantages of industry leading scale, integration and proprietary technology”

Morgan Stanley & Co. LLC served as financial advisor to ExxonMobil Chemical Company.

It’s not sold yet. So many rumors claimed it’s done deal. Get ready to bid!

I am in EM and have worked in both Santoprene and our commodity businesses. I think the “us/them” attitude only came about as folks who had invested time and passion growing the business well before 2002 were essentially told that big EM knew best and we didn’t have sufficient rigour and discipline. Anyone remember when D Woods was VP ? I do and it wasn’t pretty. And I do agree that with eventual ownership outside of EM that there is enough residual value in the franchise for it to flourish and grow again, assuming the right owners.

Post ID: @1kcg+1afr1dMI. EM has one business model which works for commodities (perhaps) but sub-optimizes all other value added "niche" business lines. Spending energy explaining why value is created in a non-commodity business line is a wasted resource with EM leadership. It's better for Santoprene to be spun off, and perhaps land in the hands of business owner who has a value add mindset. Assuming it's not too late to turn it around after having milked it for 20 years.

The biggest mistake we made with AES was allowing it co continue to operate autonomously for as long as we did. Because we did not assimilate AES into the ExxonMobil culture, the “us vs. them” mentality persists to this day. That organization has been resting on its laurels and pining away for the good old days for far too long. ExxonMobil management wasted a great opportunity to really grow this business and turn it into a real money maker.

I grew up in the Santoprene business and joined EM proper when the JV with Monsanto was dissolved in early 2000’s. Very sad news to see this happening, a series of poor decisions over the years by folks who didn’t understand the business (it’s not a commodity !) led to where we are now. TPV have huge benefits vs conventional rubber but integrating a speciality mindset into a commodity company was always going to be challenging. Shame but maybe the best thing for the business itself.

Not to bust any bubbles, but Monsanto developed Santoprene.
Exxon bought it later.
Monsanto. Probably also not an ideal place to work.

Santoprene - one of the most malleable and least toxic plastic creations in the EM portfolio of past chemical successes. Pocket change pricing for this futuristic material and plants.

Possibly indication of a simulation of CVX model,
collocation of century-old Ref and Chem facilities for full stream hydrocarbon.
Kerosene and polyethylene. Caveman product.

Florida and Wales, huh. Collocated with nothing.
Tax breaks rule. Pocket change all along.

It is no wonder. Just continued blunder.

So? How else do you think the leadership will pay themselves?

There are 2 plant locations for AES - one in Pensacola, FL and another one in Newport, Wales

What location is this? Town & state? Thanks!

Fire-selling specialised product businesses which will continue to grow to invest in what? Keeping a bunch of failing European refineries in business who have proven to be completely uncompetitive. Only the best and brightest.

Another example of how thinking we’re all the “best and brightest” leads to lack of innovation and divestitures.

For the longest time AES products were truly unmatched in performance. Did we invest much to continue this dominance? No — we rested on our laurels for decades and relied on trade secrets, hoping that our competitors would never catch up.

Guess what: our competitors caught up, and in some cases even surpassed us.

I would like to bid $1, Bob.