German chemicals major, BASF will sell its 50 per cent to Shell, its stake in Ellba Eastern, a joint venture with Shell on Jurong Island, Singapore.

The joint venture, which is operated by Shell, produces styrene monomer and propylene oxide. Financial details of the transaction were not disclosed and closing is planned for December 31, 2014.

BASF said it remains globally committed to propylene oxide and its respective value chains and so, BASF and Shell have signed a supply contract to provide BASF with the necessary volumes of propylene oxide.

Ellba Eastern started production in 2002 and the plant is fully integrated into the Shell site on Jurong Island with an annual capacity of 250,000 MT of propylene oxide and 550,000 MT of styrene monomer.

BASF added that the Ellba joint venture between Shell and BASF in Moerdijk, the Netherlands, is not affected by the transaction.

The BASF ranges from chemicals, plastics, performance products and crop protection products to oil and gas and believes in creating chemistry for a sustainable future.

BASF had sales of about €74 billion in 2013 and over 112,000 employees as of the end of the year. (AR)