Following clearance by the European Commission, INEOS has successfully completed the purchase of the Borealis AS petrochemicals business in Norway for NOK 2.3 billion (€290 million), debt free. The business includes a 50% interest in the Noretyl ethylene cracker at Rafnes and three polyolefin plants based at the nearby Bamble site.
The business provides a good fit with INEOS’ existing Olefins and Polyolefins portfolios, technology and expertise.
“The acquisition of Borealis AS is an important development for INEOS Olefins,” said Tom Crotty CEO, INEOS Olefins. “This not only increases our European manufacturing capacity but also gives us a share of a first class gas cracker based at the heart of the Norwegian energy industry”.
INEOS Polyolefins will now begin the process of integrating the businesses at the Bamble site into its organisation. “We are delighted to have the opportunity to conclude this acquisition as it represents another important step in the growth of INEOS Polyolefins as a leading producer in Europe,” said Bill Reid CEO, INEOS Polyolefins. “Bamble’s PO business fits well within the INEOS portfolio and provides us greater geographical reach and presence with key customers in the Scandinavian market, whilst also offering significant synergies across several market sectors.”
The Noretyl ethylene cracker was commissioned in 1977 and expanded by 100,000 t/a in 2005, and currently has a capacity of 557,000 t/a in addition to a propylene capacity of 80,000 t/a. It supplies the nearby Bamble site assets, which include Polypropylene (PP), Low Density Polyethylene (LDPE) and High Density Polyethylene (HDPE) plants.
INEOS is the world’s third largest chemicals company and a leading manufacturer of petrochemicals, specialty chemicals and oil products. Comprising 18 businesses, with a production network spanning 73 manufacturing facilities in 18 countries, the company produces more than 30 million tonnes of petrochemicals, 20 million tons per annum of crude oil refined products (fuels). INEOS employs 16,000 people and has sales of around $38bn.
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Hallgeir Kjeldal
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INEOS completes purchase of Borealis AS
