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.
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more fully in our most recent annual report under the Securities Exchange Act of 1934 on
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SOURCE Sasol and INEOS