INEOS Polyolefins announce €150 million investment in European assets
INEOS Polyolefins today announced its intention to invest in excess of €150 million in its European assets over the next three years, focussed on growing and upgrading its polyolefins capacities. "In making these investments, we greatly strengthen our market positions in products where we have a long term competitive advantage and clearly demonstrate INEOS' determination to build a very robust business around the high quality people and assets acquired as part of the Innovene acquisition of late 2005" says Bill Reid, CEO of INEOS Polyolefins
Polypropylene capacity expansions will take place at its facilities in Geel, Belgium and Grangemouth, Scotland. At Geel a 220 ktpa expansion of the Innovene P gas phase polypropylene unit will increase this unit's capacity to 500ktpa, transforming it into one of the largest units in the world. The smaller slurry/dry flash polypropylene asset at Geel will close later this year. At Grangemouth the 220ktpa liquid pool polypropylene unit will undergo a 30ktpa debottleneck raising its capacitiy to 280ktpa, with a further 30ktpa debottleneck to be implemented when market demand permits.
High density polyethylene capacity expansions will take place at INEOS Polyolefins' Lillo manufacturing site, whereby the capacity of its proprietary bi-modal slurry phase unit will be increased by 200ktpa to 630ktpa. The new capacity which will be in place by 2009 will also make this asset one of the largest in the world. At Grangemouth, given the current situation in plant economics, and provided there are no significant changes in market conditions, the smaller and older of its two gas phase polyethylene units, a HDPE unit, located at this site will close at the end of 2007.
In keeping with this far-reaching up-grade of capability, INEOS Polyolefins is also commiting significant funds to accelarate the development and commercialisation of advanced linear low density polyethylene products made via its proprietary metallocene catalyst technology.
"INEOS Polyolefins is strongly committed for the long-term to serving the polyolefins market with high quality, cost-effective and innovative products. By implementing this strategy of up-grading and expanding our assets, with an increased focus on high-value, differentiated polymers, we are creating a robust platform that will allow us to maintain our leading market position and ensure the future growth of our business" concludes Bill Reid.
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