Ineos Finalizes $700 Million Purchase of Ethylene Oxide Business in Texas
Ineos Finalizes $700 Million Purchase of Ethylene Oxide Business in Texas

Ineos Finalizes $700 Million Purchase of Ethylene Oxide Business in Texas

  • 13-Dec-2023 6:16 PM
  • Journalist: Jacob Kutchner

In a recent announcement, Ineos revealed the acquisition of LyondellBasell's Ethylene Oxide & Derivatives business, including the production facility in Bayport, Texas, for a sum of $700 million. The deal encompasses a 420kt Ethylene Oxide plant, a 375kt Ethylene Glycols plant, and a 165kt Glycol Ethers plant, along with associated third-party operations at the site. The target completion for this transaction is set for the second quarter of 2024, subject to regulatory and third-party approvals.

All existing employees on the LyondellBasell Bayport Underwood Site, and some offsite workers, are slated to transition to Ineos upon the deal's conclusion. Ineos Oxide's CEO, Tobias Hannemann, expressed enthusiasm about this strategic acquisition, emphasizing its significance in expanding Ineos' Ethylene Oxide & Derivatives business into the U.S., the world's largest market. He highlighted the complementarity with Ineos' existing ethanolamines production facility in Plaquemine, Louisiana.

The Bayport Underwood site, with ample available land for Ineos' growth aspirations, provides an ideal location for developing third-party businesses. Hannemann underlined the anticipation of welcoming a team of professional and motivated individuals into the global Ineos group.

LyondellBasell, in a release on its site, confirmed the agreement to sell its Ethylene Oxide & Derivatives business, including the Bayport facility, to Ineos Oxide. CEO Peter Vanacker emphasized the transaction as evidence of the company's focus on value creation and its commitment to growing and upgrading its core operations. Vanacker expressed pride in the EO&D business's positive attributes, including cash generation, access to advantaged feedstocks, and a skilled team. The transaction is valued at $700 million and is expected to close in the second quarter of 2024, contingent upon the planned maintenance completion and customary closing conditions.

Ethylene oxide, a key raw material in various chemical productions globally, plays a vital role in everyday life. It is indispensable for manufacturing pharmaceuticals, cosmetics, semiconductors, polyester, food packaging, construction materials, antifreeze, brake fluids, solvents, paints, soap, and detergents. Ineos highlighted its first acquisition in 1998, the ethylene oxide facility at Zwijndrecht, Belgium, which laid the foundation for the company's subsequent growth in the chemicals business.

This acquisition follows Ineos' completion of the Eastman Texas City site acquisition, including a 600kt Acetic Acid plant, earlier this month. David Brooks, CEO of Ineos Acetyls, expressed delight in completing the strategic acquisition, emphasizing the focus on integrating the site, business, and employees into Ineos Acetyls. The Eastman Texas City acquisition aligns with Ineos' ambition for its Acetyls business and positions the site favorably for growth.

Ineos has been making strategic moves in the U.S., including the entry into onshore oil and gas production with the acquisition of Chesapeake Energy's assets in the Eagle Ford shale for $1.4 billion. This marked Ineos Energy's entry into the U.S. oil and gas market, with the acquisition of 2,300 wells producing a net 36,000 barrels of oil equivalent per day.

Related News

EPA Launches Crackdown on Toxic Air Emissions from Over 200 Chemical Plants
  • 10-Apr-2024 1:45 PM
  • Journalist: Jung Hoon
Ethylene Oxide Prices Revised Down on Restricted Buying Interest in Europe
  • 04-Apr-2024 4:02 PM
  • Journalist: Jacob Kutchner
Dow to Construct Major Carbonate Solvents Plant on US Gulf Coast
  • 26-Mar-2024 5:12 PM
  • Journalist: Yage Kwon
BASF Breaks Ground on Methyl Glycol Plant at Zhanjiang Verbund Site, China
  • 22-Mar-2024 3:26 PM
  • Journalist: Jai Sen