INEOS Acquires LyondellBasell Ethylene Oxide, Derivatives Business, Production Facility for $700M
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INEOS has intered into an agreement with LyondellBasell to buy its ethylene oxide and derivatives business including the Bayport Underwood site, Texas. The deal includes the Ethylene Oxide plant, the Ethylene Glycols plant, and the Glycol Ethers plant together with all associated third-party business on the site, for $700 million.
Ethylene oxide plays an essential role in the day-to-day life of millions of people. It is a key raw material used in large-scale chemical production around the world. It is necessary for the production of pharmaceuticals, cosmetics, semiconductors, polyester, food packaging, construction materials, antifreeze, brake fluids, solvents, paints, soap, and detergents.
The first site acquired by INEOS in 1998 was the Ethylene Oxide facility at Zwijndrecht Belgium. As a key raw material, this Ethylene Oxide facility became the foundation from which INEOS has grown its chemicals business.
“We are pleased to announce this strategic acquisition. INEOS is a leading producer in Europe and this significant step expands its ethylene oxide and derivatives business into the U.S., which is the world’s largest market. It also complements our existing ethanolamines production facility in Plaquemine, Louisiana,” said Tobias Hannemann, CEO INEOS Oxide.
“There is free land on the Bayport Underwood site for INEOS’ growth aspirations and it is an ideal location to develop our third-party business supporting customers to co-locate and integrate into an existing ethylene oxide and derivatives platform. We look forward to welcoming the business, site and team of very professional and highly motivated people into the global INEOS group,” added Hannemann.
The LyondellBasell ethylene oxide and derivatives site in Bayport Underwood produces high-quality ethylene oxide and derivatives. The fully integrated platform has access to cost advantaged U.S. energy, feedstocks, and logistics networks, and has both an excellent performance record and reputation in the market.
“This transaction is evidence of our disciplined focus on value creation through the execution of a key pillar of our strategy — growing and upgrading our core,” said Peter Vanacker, LyondellBasell CEO.
“We remain proud of the positive cash generation, access to advantaged feedstocks, reliability and highly skilled team that makes up the EO&D business and are excited to have reached an agreement with INEOS to enable the business to continue generating value under different ownership,” added Vanacker.
All current employees on the LyondellBasell Bayport Underwood Site and some who work offsite, will transfer over to INEOS on completion of the transaction.
Target completion is the second quarter of 2024, subject to regulatory and other third-party approvals, at which point INEOS will acquire a site with world class assets, leading production facilities, and a successful and experienced team.
INEOS is a global petrochemicals manufacturer, comprising 36 individual businesses. They operate 182 facilities in 31 countries throughout the world, employing 25,000 people. INEOS makes the raw materials and energy used for everyday life. Its products make an indispensable contribution to society and are essential in applications ranging from the preservation of food to the provision of clean water; from construction of wind turbines, solar panels, and other renewable technologies to the construction of lighter and more fuel-efficient vehicles and aircraft; from medical devices and pharmaceuticals to clothing and apparel. In recent years INEOS has diversified with the launch of INEOS automotive and INEOS hygienics, the acquisition of iconic British brand Belstaff and an ever-expanding sports portfolio. As part of its greenhouse gas emission reduction strategy, INEOS businesses have put in place plans and actions needed to ensure that they lead the transition to a net zero economy by no later than 2050.
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