Sasol and INEOS Reach Final Investment Decision on High Density Polyethylene Joint Venture
Houston (ots/PRNewswire) - Sasol Chemicals North America LLC and INEOS Olefins & Polymers USA announced today that they have reached final investment decision to form a joint venture to build a high-density polyethylene (HDPE) plant in LaPorte, Texas.
The 50/50 joint venture will produce 470 kilotons per annum of bimodal HDPE using Innovene(TM) S process technology licensed from INEOS Technologies. The ethylene required for the production of the HDPE will be supplied by Sasol and INEOS in proportion to their respective ownership positions.
"This project will expand Sasol's presence in the global chemical market and complement our North American growth strategy," said Fleetwood Grobler, Sasol group executive for global chemicals. "Its location offers several benefits, including access to U.S. Gulf Coast infrastructure and proximity to our current and proposed ethane cracker and derivatives complex in Southwest Louisiana."
INEOS will operate the HDPE plant at its Battleground Manufacturing Complex in LaPorte. Plant start-up is expected in the 2016 calendar year.
"This investment will allow INEOS to meet our customer's needs for additional bimodal products," said Dennis Seith, CEO of INEOS Olefins & Polymers USA. "It also supports INEOS's strategy to invest and to capture synergies on our major sites."
The definitive agreements are in the process of being finalised, and all relevant permits have been obtained. Because the plant will be debt financed, the investment decision is conditional on achieving financial close.
Sasol and INEOS announced their intention to form this joint venture in July 2013.
Committed to excellence in all we do, Sasol is an international integrated energy and chemicals company that leverages the talent and expertise of our more than 34 000 people working in 37 countries. We develop and commercialise technologies, and build and operate world-scale facilities, to produce a range of product streams, including liquid fuels, chemicals and electricity.
While continuing to support our home-base of South Africa, Sasol is expanding internationally based on a unique value proposition.
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Issued by: Russell Johnson, Director Public Affairs Direct telephone +1(281)-588-3027 email@example.com