INEOS Nitriles and Tianjin Bohai Chemical Industry Group Corporation sign Heads of Terms to create a 50/50 Joint Venture to build a 260,000 tonne Acrylonitrile plant in the Tianjin [Chemical Industrial Park] in Tianjin Municipality, China.
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 biggest producer in the world.
This is the second project INEOS has announced in China in recent months. Combined, the two JV projects account for a total investment from all partners of more than $1 billion.
INEOS Nitriles and Tianjin Bohai Chemical Industry Group Corporation have today signed a non binding Heads of Terms, setting out their intention to establish a 50/50 Joint Venture, to build and operate a world scale Acrylonitrile plant to be located in Tianjin, China. It is expected that the plant, which will be designed using the latest INEOS process and catalyst technology, will be completed by the end of 2016.
The initial annual capacity of the new facility will be 260,000 tonnes of Acrylonitrile with an expectation of possible future expansion, in line with growing demand across Asia.
The final agreement is subject to confirmation of satisfactory project costs and conclusion of discussions with the local authorities.
The partnership will benefit from Tianjin Bohai Chemical’s operating capability, local feedstock advantages and proximity to derivative growth markets. INEOS will provide commercial expertise and production ‘know-how’, as well as its proprietary Acrylonitrile process and catalyst technology.
Located in Tianjin, the new plant will be well positioned close to one of the most rapidly growing centres of China's Acrylonitrile demand, with easy access to customers throughout Asia.
“This is the second Joint Venture project INEOS has announced in China this year.” said Jim Ratcliffe, Chairman of INEOS. “In March INEOS Phenol initialed a joint venture agreement with Sinopec YPC for the design, build and operation of a 1.2 million tonne cumene, phenol and acetone complex at Nanjing. Both Joint Ventures bring together our world leading technology with a strong Chinese partner. They will add up to a total investment across all partners of more than $1 billion.”
The Joint Venture with Tianjin Bohai Chemical reinforces INEOS’ commitment to serve its Acrylonitrile customers globally by extending production to cover Asia, the world’s fastest growing market. The investment positions INEOS as the only producer in the world to have capacity in each of the world’s largest Acrylonitrile markets.
“This is an important investment for the Nitriles business in Asia to support our customers’ growing needs across the region,” said Rob Nevin, CEO of INEOS Nitriles.“We are very pleased to be building this new facility with Tianjin Bohai Chemical through the formation of the Joint Venture. Our partnership is set to bring considerable value to both companies and their customers. Bringing together our proprietary Acrylonitrile technology, with Tianjin Bohai Chemical’s expertise and advantaged feedstocks, presents a formidable combination.”
Tianjin Bohai Chemical Industry Group Corporation is a large scale, well established chemicals company based in Tianjin (China). The Group had sales of over $11 billion (2012). The company markets a wide range of products including propylene and Acrylonitrile Butadiene Styrene (ABS).
“I am very pleased that we have reached an agreement with INEOS. This important partnership is consistent with Tianjin Bohai Chemical’s strategic focus on integration and growth,” said Chairman Mr Zhao Lizhi of Tianjin Bohai Chemical. “The Joint Venture further develops our upstream and downstream integration. Combined with INEOS’ leading Acrylonitrile technology, the JV puts us in an advantaged position to meet growing demand for petrochemical products, in the Tianjin region, across China, and in Asia.”
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.
INEOS Nitriles is a part of INEOS Group Holdings S.A.
For further information contact:
Richard Longden – INEOS Group AG
Tel: +41 (0) 21 627 7063
Charles Saunders - INEOS Americas
Tel +1 (0) 281 535 6630
Zijing Guo-Tianjin Bohai Chemical Industry Group Co., Ltd Tel: 0086-22-58980509
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 Koln (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.
Tianjin Bohai (www.bcig.cn) is a state owned enterprise, with over 100 subsidiaries and 35,000 employees. It has joint venture relationships with a number of foreign partners, including: LG Chem, Solvay, Akzo Nobel, Clariant, Veolia, Air Liquide and Vopak. It produces over thousands of chemical products and had sales in excess of $11 billion (2012), ranking No. 182 in the top 500 enterprises in China.
Tianjin is the largest coastal city in the north part of China, with a population of over 12 million. It is located on the east coast, and can be reached in 25 minutes by fast train from Beijing. The Tianjin region is focused on petrochemicals, manufacturing and textiles – with significant growth in car manufacturing. In addition, there is an Airbus assembly facility in the region.