INEOS completes joint venture with LANXESS to operate the ABS plastics business
Following clearance by the European Commission, INEOS Group has today successfully completed its agreement with LANXESS, the German chemicals and polymers group, to establish a new Joint Venture through which it is to take over the operation of the LANXESS ABS* plastics business, Lustran Polymers. As part of the first stage of this agreement INEOS acquires a 51 percent majority share in the new business, to be called INEOS ABS. The remaining 49 percent share will be acquired by INEOS at the end of September 2009.
“INEOS ABS will be a reliable, long-term partner of the industry, bringing with it a strong portfolio of leading products, that complement our styrenic, polyethylene, polypropylene and PVC plastics activities,” said Gerd Franken, CEO INEOS ABS. “This is a significant extension to the INEOS group of businesses and the markets they serve. The ABS business will also benefit from upstream integration with its key raw materials all manufactured by INEOS businesses.”
INEOS ABS will be the world’s third largest and Europe’s leading supplier of ABS plastics. It will employ 1600 people and generate sales amounting to almost €900m ($1.2 billion) from its assets in Dormagen (Germany); Tarragona (Spain); Map Ta Phut (Thailand); Vadodara (India) and Addyston (USA).
INEOS is the world’s third largest chemicals company and a leading manufacturer of petrochemicals, specialty chemicals and oil products. Following the addition of INEOS ABS it comprises 19 businesses, with a production network spanning 73 manufacturing facilities in 19 countries, the company produces more than 30 million tonnes of petrochemicals, 20 million tons per annum of crude oil refined products (fuels). INEOS employs 16,500 people and has sales of around $39 billion.
The completion of the Indian transaction remains subject to local regulatory approval.
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*Acrylonitrile (A), Butadiene (B), Styrene (S)