INEOS Nitriles is to idle part of the Acrylonitrile production at its Green Lake Texas facility until market conditions improve
- The Green Lake plant will operate at 50% capacity in January.
- A significant proportion of capacity will remain idled in Q1 2014 subject to a review of markets.
- Acrylonitrile contract price in Asia for January is nominated at $1,955/mt CIF Main Port basis.
INEOS Nitriles has today announced that it is to temporarily reduce output at its Green Lake facility (Texas, USA).
Unsustainable margins have led to a decision to reduce production of acrylonitrile at Green Lake by 50% capacity in January. A significant proportion of capacity will remain idled through for the eemainder of Q1 subject to a review of markets.
Graham Beesley, Commercial Director INEOS Nitriles said: "Our current position is unsustainable and we are forced regrettably to take this decision to preserve the long term health of our acrylonitrile business. Given the poor margins that we have experienced in the latter part of 2013, we have little choice but to reduce our production until trading conditions improve.”
As part of this announcement, the business also confirms the January contract price nomination for acrylonitrile into Asia at $1,955/mt CIF main port.
INEOS Nitriles operates four plants worldwide, two in North America (Texas & Ohio) and two in Europe (Germany & UK). Green Lake in Texas is the largest - based in Calhoun County, it produces 545,000 tonnes of Acrylonitrile per year.
The business recently announced an agreement with Tianjin Bohai Chemical Industry Group Corporation to form a 50/50 JV to build a fifth plant, to be located in Asia. The investment positions INEOS Nitriles as the only producer to have plants in each of the world’s largest Acrylonitrile markets, and reinforces its position as the largest producer in the world.
Acrylonitrile is used as a raw material for the production of synthetic fibres, engineering plastics (ABS, Acrylonitrile Butadiene Styrene), carbon fibre, synthetic rubber and water soluble polymers. These products are used in a very diverse range of end use markets, such as textiles, automotive components, building and construction materials, household appliances, electronic equipment, sporting goods, water treatment and oil & gas production.
For further information contact:
Richard Longden – INEOS Group AG - Tel: +41 (0) 21 627 7063 e-mail: email@example.com
Note to Editors:
INEOS Nitriles is a part of INEOS Group Holdings S.A. It is the world’s largest producer of Acrylonitrile and Acetonitrile and the world’s leading supplier of nitrile-based chemicals. The company maintains its leadership position through its technological know-how, market access and manufacturing capability. INEOS Acrylonitrile technology is used by over 90% of the world’s Acrylonitrile production units. The business currently has sales of around $2.5 billion per annum and employs 600 people across its manufacturing facilities in Köln (Germany), Seal Sands (UK), Green Lake (Texas, USA) and Lima (Ohio, USA). It has a total capacity to produce around 1.7 million tonnes, of product each year.
INEOS is one of the world’s leading chemicals companies; a global manufacturer of petrochemicals, specialty chemicals and oil products. Comprising 15 businesses, with a production network spanning 51 manufacturing facilities in 12 countries. The company produces more than 40 million tonnes of petrochemicals. INEOS employs 15,000 people and has sales of around $43bn. Through its Joint Venture with PetroChina (Petroineos) it produces 20 million tons per annum of crude oil refined products (fuels). It also operates joint ventures with BASF, PQ Corp and Total.