UK Sales: AES Sells Power Plant, Lubrizol Sells Chemical Site

The AES Corp. announced Tuesday that it has completed the sale of its AES Indian Queens Power Ltd. subsidiary, a 140 MW open cycle peaking power plant located in Cornwall, UK, to International Power IQ Ltd., a wholly owned subsidiary of International Power Ltd.,  for approximately $60 million.

After paying off existing project debt, the sale will provide AES with a net return about $28 million in cash. No material gain or loss is associated with the transaction.

The Lubrizol Corp. on Tuesday announced that is will sell its 47-acre Bromborough, UK, manufacturing site to D1 Oils plc, a UK-based global producer of biodiesel, for approximately $5.7 million. The sale is expected to close by the end of 2006.

D1 is planning to convert the site to biodiesel production sometime in 2007.

AES president and CEO Paul Hanrahan said, "Portfolio management continues to be an important tool for AES to create shareholder value and provide additional cash distributions to support growth investment and debt reduction. This was the right transaction at the right time and we are pleased with the results."

Lubrizol, in January, 2005, announced plans to discontinue, by the end of 2006, production of additives for fuels and engine oil lubricants, and special monomers at the Bromborough site.

At that time, Lubrizol estimated that restructuring costs, including employee severance and other plant closure costs (including demolition costs), would cost approximately $15.0 million. 

With the planned sale, Lubrizol now estimates that they will save about $3.0 million to $5.0 million in restructuring costs that would have resulted from demolishing the plant facilities on the Bromborough site. 

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