Monsanto, Exxon Merge Plastics Firms

Monsanto Chemical Co. and Exxon Chemical Co. said they have merged their thermoplastics businesses to create an independent company.

The new company, Advanced Elastomer Systems, will initially employ about 450 employees and be headquartered in St. Louis, executives said at a press conference in Detroit.

The companies said the new business combines more than $100 million in sales. Thermoplastics can be recycled and are widely used in the automotive, medical, appliance and electrical industries.

Monsanto and Exxon said the use of thermoplastic elastomers is growing at an annual rate of about 10% and added that they expect the market to increase dramatically during the 1990s.

Exxon Chemical had been supplying raw material to Monsanto since 1984. Discussions for a partnership began in 1986, the companies said.