Colombia’s state-owned oil producer Ecopetrol (Bogotá; www.ecopetrol.com.co) is reported to have taken initial steps towards selling its plastics unit. The sale, first reported by Bloomberg and based on sources with “direct knowledge”, is said to be part of the company’s strategy to divest non-core assets and focus on the production of oil and gas. Ecopetrol has declined to comment.

Last month, Ecopetrol’s board said management may explore the sale of several assets including the unit formerly known as Propilco, providing the right price is offered. The producer outlined a new 2020 strategy last May that included cost cuts and plans to divest company stakes and oil blocks.

Ecopetrol’s plastics business comprises a small LDPE plant with a production capacity of 60,000 t/y, and its Polipropileno del Caribe subsidiary runs two PP lines with capacity for 250,000 t/y each, according to Plasteurope.com's Polyglobe capacity database (www.polyglobe.net). The PE unit is said to be suffering from competition from imports. However, the PP units supply the domestic and export markets.