Revised funding arrangements announcement
INEOS Chlor announces today that the contract to construct the new 400kte cellrooms in Runcorn has been awarded to Fluor/Uhde. Furthermore, we can also confirm a revision to the funding package to support the modernisation of the Runcorn site.
The cellroom contract is the most significant element of the modernisation programme that also includes a new state of the art boiler plant, a new centralised control room and a series of modernisation projects on a number of the other plants on site. Significant progress on the major projects has already been made and all remain on track for completion by 2006. The Fluor/Uhde partnership brings a wealth of experience to this project and, combined with the application of INEOS BiChlor TM electrolyser technology, will create one of the most advanced cellrooms in the world.
The financing package announced in July 2003 comprised £45m from INEOS Group companies and £60m from ICI together with Regional Selective Assistance from the UK Government. This was in addition to the original £100m facility, which ICI agreed to provide to the business as part of the original acquisition by INEOS.
Under the revised package announced today, INEOS Holdings, a subsidiary of INEOS Group intends to make available additional facilities to INEOS Chlor of £91m (‘the New INEOS Facility’). ICI will sell their 15% shareholdings in INEOS Chlor and INEOS Chlor Enterprises to INEOS Group companies and will forego over £100m of loans and accrued interest. ICI will have no further economic interest in INEOS Chlor.
The refinancing represents a major vote of confidence by INEOS in the business and is a clear sign of the company’s commitment to be a leading player in the global chlor alkali industry.
For further information please contact:
Craig Welsh, INEOS Chlor Press Office
Phone: 01928 511528