INEOS Acquisition of BP's Acetate Business receives clearance from EU Competition Authorities
INEOS Group has today received clearance from the EU competition authorities for its proposed acquisition of the vinyl acetate monomer and ethyl acetate businesses from BP. The deal comprises 500ktpa of production capacity at the Saltend manufacturing site near Hull, UK, along with the Teesside to Saltend Ethylene Pipeline.
The acquisition of BP’s acetate businesses provides a complementary fit with the portfolio, technologies and expertise of INEOS. It also allows the Company to optimise existing links between the Hull and Grangemouth manufacturing sites.
“The addition of these facilities broadens the INEOS portfolio of oxygenated solvents, optimises existing links with our Grangemouth site and helps us to meet the growing demand for both products," said Jim Ratcliffe, INEOS Chairman.
“These are well placed assets, complemented by a very experienced operations team and high safety, health and environmental standards. Acquiring these two businesses provides another step forward in the development of INEOS in Europe.”
Upon completion the new acetate businesses will be integrated into the portfolios of INEOS Enterprises and INEOS Oxide.
The transaction is expected to close in the first quarter 2008.
ENDS
Notes to editors:
- INEOS is the world's third largest chemicals company; a leading manufacturer of petrochemicals, specialty chemicals and oil products. Comprising 19 businesses, with a production network spanning 76 manufacturing facilities in 20 countries, the Company produces more than 32 million tonnes of petrochemicals and 20 million tonnes per annum of crude oil refined products (fuels). INEOS employs 16,600 people and has sales approaching $45billion.
- INEOS Enterprises is a portfolio of eight leading businesses manufacturing chemical products in Northern Europe and Southeast Asia, with sales of these products to customers around the world. The Company is focused on the developing needs of customers and rapid growth through investment in new products and manufacturing facilities or by acquisition. INEOS Enterprises employs some 500 people across sites in the UK, France, Germany and Thailand and has an annual turnover in excess of €600 million.
- INEOS Oxide produces a comprehensive range of specialty and intermediate chemicals derived from ethylene and ethylene oxide. It is a proven leader with a strong track record of product quality, engineering excellence and innovation. INEOS Oxide has an annual turnover of €1.6 billion, and employs some 780 people across manufacturing sites in Belgium, Germany, France and USA. In Europe that Company has an output of 2.4 million tpa, whilst in the USA annual output stands at 160ktpa.
- BP will continue to operate its acetic acid and acetic anhydride assets at the Saltend site. Saltend produces about 500ktpa of acetic acid per year, the largest manufacturer in Europe; and about 150ktpa of acetic anhydride per year. Acetic acid is used in VAM, PTA esters and other intermediates and acetic anhydride is used in cellulose acetate and chemical derivatives. Around 400 people are employed on the manufacturing site at Saltend with a further 185 employed in the research and technology centre.
- The Teesside to Saltend Ethylene Pipeline is a 151 kilometre high-pressure pipeline, supplying ethylene feedstock to the VAM and EtAc plants.
For further information please contact:
Richard Longden, INEOS Press Office
Phone: 07710 371 998
Email: richard.longden@ineoscapital.com
Craig Welsh, INEOS Enterprises Press Office
Phone: 01928 511528
Fax: 01928 569459
Email: craig.welsh@ineoschlor.com