Following the acquisition of Eastman’s Texas City facility for $500 million, on December 8, 2023, Ineos took over Lyondels Basle’s ethylene oxide operations, including the production plant in Bayport, Texas, at a cost of approximately $700 million.
Ineos has entered into an agreement with Lyondels Basel to purchase ethylene oxide and its derivatives businesses, including a 420,000-tonne/year ethylene oxide plant, a 375,000-tonne/year ethylene glycol plant and a 165,000-tonne/year ethylene glycol ether plant, as well as all related businesses at the site.
Lyondels Basel plant in Bayport produces high quality ethylene oxide and its derivatives.This highly integrated plant will leverage the cost-effective energy, raw materials and logistics networks of the United States.
Ethylene oxide is an important raw material for large-scale chemical production and is widely used in the production of pharmaceuticals, cosmetics, semiconductors, polyesters, food packaging, building materials, antifreeze, brake fluids, solvents, paints, soaps and detergents.
Tobias Hannemann, CEO of Ineos Oxide, said: “We are pleased to announce this strategic acquisition.Ineos, a leading European producer, is expanding its ethylene oxide and derivatives business into the United States, the world’s largest market.Our existing ethanolamine production facility is located in Pramikine, Louisiana.”
Peter Vanacker, CEO of LyondBasel, said: “This transaction demonstrates LyondBasel’s focus on value creation.Ethylene oxide and its derivatives business has obvious advantages, convenient raw material acquisition, and reliable and efficient team.We are pleased to have reached an agreement with Ineos that enables the business to continue to create value under different ownership.”
All existing employees at Leander Basel Bayport, as well as some employees working off-site, will be transferred to Ineos upon completion of the transaction.Subject to regulatory and other third party approvals, the transaction is expected to close in the second quarter of 2024.