INEOS Group agree sale of INEOS Fluor to Mexichem Fluor S.A.
INEOS Group to sell fluorochemicals business to Mexichem Fluor S.A. de C.V., a subsidiary of Mexichem S.A. de C.V.
The agreement will bring together the world’s largest fluorspar supplier and HF producer with a leading worldwide fluorochemicals company.
“The agreement presents a unique opportunity to bring together the world’s largest supplier of fluorspar, with our own world leading fluorochemical production assets, customer base and research capabilities,” said David Price, CEO INEOS Fluor.
INEOS Group has agreed terms for the sale of its fluorochemicals business to Mexichem, a leading Latin American producer of PVC pipes and resin, chloralkali, hydrofluoric acid and fluorspar.
The deal comprises the international business and assets related to INEOS’ fluorochemical operations located in North America, Europe, and Asia. It is expected that on completion of the transaction, the business will become an integrated, global producer of speciality fluorochemicals with worldwide presence and annual sales revenue of over US$500 million.
David Price, CEO INEOS Fluor warmly welcomed the news. “The agreement presents a unique opportunity to bring together the world’s largest supplier of fluorspar, with our own world leading fluorochemical production assets, customer base and research capabilities. The investment by Mexichem shows real commitment and confidence in the future of fluorochemicals, as a strategic business."
Elaborating on the reasons behind the sale, Price adds: “Whilst performing well, the fluorochemicals business no longer fits within the INEOS Group portfolio as it focuses its attention on its large-scale petrochemicals businesses.”
INEOS Fluor is a world leading specialities business built on expertise and innovation in fluorine chemistry. The company supplies fluorine-based products, technology and services across a number of major industries from pharmaceuticals to automotive, refrigeration and air-conditioning. The company employs around 350 people across sites in the Europe, North America and Asia.
Ricardo Gutiérrez Muñoz, CEO, Mexichem said, “This agreement is a major step forward in the development and growth of Mexichem. Acquiring INEOS’ Fluorochemicals business reflects our ongoing strategy to add value to our main raw materials through vertical integration in more added value products, expanding our product range and extending the global reach of our fluorine products business.”
He adds, “The strategic fit of this business within Mexichem presents a unique opportunity to enhance our business, our position in the fluorochemicals market and the service that we can offer our customers.”
The sale is expected to be completed at the end of March, subject to necessary regulatory filings and approvals, including bank consent and approvals under applicable antitrust laws and regulations.
For further information contact:
Richard Longden – INEOS - Tel: +44 (0) 7710 371998
Note to editors:
INEOS (www.ineos.com) is the world's third largest chemicals company; a leading manufacturer of petrochemicals, specialty chemicals and oil products. Comprising 17 businesses, with a production network spanning 65 manufacturing facilities in 14 countries, the company produces more than 30 million tonnes of petrochemicals, 20 million tons per annum of crude oil refined products (fuels). INEOS employs 15,500 people and has sales of around $47bn.
INEOS Fluor is a global manufacturer of fluorinated chemicals and fluorinated feedstocks. It currently has a turnover of approximately €300 million and employs 350 people in operations in Europe, USA, Japan and China.
INEOS Fluor manufactures and supplies fluorine-based products, technologies and services that are used extensively by the world’s major industries. Its products touch many aspects of everyday life in many unseen ways bringing numerous benefits to society.
- Its refrigerants keep food fresh and safe, protect blood supplies and biomedical stores, air condition offices, homes, cars and operating theatres
- Its medical propellants help millions of patients with asthma, bronchitis and other lung diseases breathe more easily
- Its fluorinated intermediate chemicals are used to make advanced coatings for applications as diverse as cookware and aerospace
Mexichem (www.mexichem.com) was established in 1958. It is currently a leading Latin American chemical producer with interests in 29 countries employing around 10,000 employees worldwide. The company, which is traded on the Mexican Stock Exchange, has an estimated turnover of $2.3bn, as published in its 4th Quarter 2009 guidance note. In 2004, Mexichem acquired Química Flúor and integrated its operation with that of Minera Las Cuevas, the largest worldwide producer of fluorite, making it the largest vertically integrated producer of hydrofluoric acid in the world. Mexichem is also the largest Latin American producer of PVC Pipes, vinyl resins and compounds.