In an announcement made by INEOS, it was revealed that the company had completed the sale of its sulphur chemicals business to International Chemical Investors Group. The deal will include the transfer of a 400,000 tons per annum plant located in Bilbao, Northern Spain. The plant manufactures Sulphuric Acid and Oleum which have high versatility ranging from agrochemicals to chemical intermediates.
After the transfer, the plant will become part of German based WelyChem’s Group of Companies which is a global platform for fine chemicals. WelyChem is a wholly owned subsidiary of the International Chemical Investors Group (ICIG). WelyChem already has a well-established presence in Europe in terms of Sulphur chemicals business where the company owns a has Sulphuric Acid and Oleum plant in Lamotte, Northern France.
Sulphur is an active ingredient in several fertilizers and rubbers. Sulphur demand is on the rise with increased consumption of downstream agrochemicals and other Sulphur related chemical intermediates. Spain has a highly developed automotive industry which has increased consumption for rubber tires after the Covid fallout which in turn is likely to increase demand for Sulphur products. The acquisition comes in the backdrop of the above market outlook and ICIG is expected to consolidate on that market sentiment meanwhile broadening their product portfolio in Spain.