London, 08 December 2023, (Oilandgaspress): – INEOS has today announced an agreement with LyondellBasell to buy its Ethylene Oxide and Derivatives business including the Bayport Underwood site, Texas. The deal includes the 420 kt Ethylene Oxide plant, the 375 kt Ethylene Glycols plant and the 165kt Glycol Ethers plant together with all associated third-party business on the site, for $700 million.
Ethylene Oxide plays an essential role in the day-to-day life of millions of people. It is a key raw material used in large-scale chemical production around the world. It is necessary for the production of pharmaceuticals, cosmetics, semiconductors, polyester, food packaging, construction materials, antifreeze, brake fluids, solvents, paints, soap and detergents.
The first site acquired by INEOS in 1998 was the Ethylene Oxide facility at Zwijndrecht Belgium. As a key raw material, this Ethylene Oxide facility became the foundation from which INEOS has grown its chemicals business.
Tobias Hannemann, CEO INEOS Oxide said, “We are pleased to announce this strategic acquisition. INEOS is a leading producer in Europe and this significant step expands its Ethylene Oxide & Derivatives business into the US, which is the world’s largest market. It also complements our existing Ethanolamines production facility in Plaquemine, Louisiana.
There is free land on the Bayport Underwood site for INEOS’ growth aspirations and it is an ideal location to develop our third-party business supporting customers to co-locate and integrate into an existing Ethylene Oxide & Derivatives platform. We look forward to welcoming the business, site and team of very professional and highly motivated people into the global INEOS group.”
The LyondellBasell Ethylene Oxide & Derivatives site in Bayport Underwood produces high-quality ethylene oxide and derivatives. The fully integrated platform has access to cost advantaged US energy, feedstocks and logistics networks, and has both an excellent performance record and reputation in the market.
“This transaction is evidence of our disciplined focus on value creation through the execution of a key pillar of our strategy – growing and upgrading our core,” said Peter Vanacker, LyondellBasell CEO. “We remain proud of the positive cash generation, access to advantaged feedstocks, reliability and highly skilled team that makes up the EO&D business and are excited to have reached an agreement with INEOS to enable the business to continue generating value under different ownership.”
All current employees on the LyondellBasell Bayport Underwood Site and some who work offsite, will transfer over to INEOS on completion of the transaction.
Target completion is the second quarter of 2024, subject to regulatory and other third-party approvals, at which point INEOS will acquire a site with world class assets, leading production facilities and a successful and experienced team.
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