Sasol and INEOS Reach Final Investment Decision on High Density Polyethylene Joint Venture
HOUSTON, June 9, 2014 /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.
Forward-looking statements: Sasol may, in this document, make certain statements that
are not historical facts and relate to analyses and other information which are based on
forecasts of future results and estimates of amounts not yet determinable. These
statements may also relate to our future prospects, developments and business strategies.
Examples of such forward-looking statements include, but are not limited to, statements
regarding exchange rate fluctuations, volume growth, increases in market share, total
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expressions are intended to identify such forward-looking statements, but are not the
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statements involve inherent risks and uncertainties, both general and specific, and there
are risks that the predictions, forecasts, projections and other forward-looking
statements will not be achieved. If one or more of these risks materialise, or should
underlying assumptions prove incorrect, our actual results may differ materially from
those anticipated. You should understand that a number of important factors could cause
actual results to differ materially from the plans, objectives, expectations, estimates
and intentions expressed in such forward-looking statements. These factors are discussed
more fully in our most recent annual report under the Securities Exchange Act of 1934 on
Form 20-F filed on 9 October 2013 and in other filings with the United States Securities
and Exchange Commission. The list of factors discussed therein is not exhaustive; when
relying on forward-looking statements to make investment decisions, you should carefully
consider both these factors and other uncertainties and events. Forward-looking statements
apply only as of the date on which they are made, and we do not undertake any obligation
to update or revise any of them, whether as a result of new information, future events or
Issued by: Russell Johnson, Director Public Affairs Direct telephone +1(281)-588-3027 email@example.com
SOURCE Sasol and INEOS