NEW HAVEN, Conn. -- General Electric Co. Monday said it will sell its plastics division for about $11.6 billion in the latest move to reshape one of the world's largest companies.

GE said it would use the proceeds from the sale to petrochemicals manufacturer Saudi Basic Industries Corp. primarily to increase its planned 2007 stock buyback program. It now expects to buy back $7 billion to $8 billion in stock, up from the previous plan of $6 billion.

The deal is expected to create a net gain, after taxes, of $1.5 billion for the Fairfield-based conglomerate.

GE Chairman and Chief Executive Jeff Immelt called the long-expected divestiture "another important step" in the company's strategy to sell slower growth businesses, such as insurance, so that it can invest in high-growth, high-technology businesses, like health care and water processing technology.

Employees at the Ottawa plant were notified Monday morning -- the same time the news was released to the media.

About 275 employees work at the Ottawa plant on Canal Road.

GE spokesman Jeff Demarrais said during a meeting Monday between GE officials and SABIC CEO Mohammed Al-Mady, Al-Mady noted one of his "major interests" is the employees.

"He refers to the people as the company's No. 1 asset," Demarrais said, adding Al-Mady said he bought the company for the quality of the people and the operations, and plans to utilize those employees.

"His intention is to invest in and grow the business."

GE confirmed in January it was putting its plastics business up for sale following previous unconfirmed reports of an intention to sell GE Plastics, as it had its quartz and silicone divisions in early December.

The Ottawa plant is used to manufacture extruded plastic pellets that are shipped to other manufacturers around the world to be formed into finished plastic products.