INEOS today announced that it has agreed to purchase the Seal Sands site on Teesside (UK) from BASF plc, a subsidiary of the German chemical company BASF. The acquisition is being made by INEOS Nitriles Limited and is conditional on approval from the relevant antitrust authority. The value of the deal is not disclosed.
The Seal Sands site provides large-scale production facilities for acrylonitrile (AN), adipodinitrile (ADN) and hexamethylenediamine (HMD), along with by-product plants. These chemical intermediates are used in the production of acrylic and polyamide (PA) fibres for clothing and carpets, as well as for acrylonitrile-butadiene-styrene (ABS) and PA plastics for the automotive, electric & electronics and domestic appliance industries.
The Acrylonitrile plant at Seal Sands currently produces around 230,000 tonnes per annum with the majority of product being used to supply three BASF downstream businesses, located at Antwerp (Belgium), Seal Sands (UK) and Ludwigshafen (Germany).
The acquisition fits well with INEOS Nitriles capabilities and expertise in the Acrylonitrile and associated businesses. Additionally, the Seal Sands Acrylonitrile plant will serve the existing INEOS Acetonitrile plant located at the Seal Sands facility, which currently upgrades and sells the by-product received from the plant.
Said Rob Nevin, INEOS Nitriles CEO: “The purchase of BASF’s Seal Sands manufacturing site is a natural development for INEOS Nitriles and supports our long-term strategy. We have a strong commitment to our customers and this acquisition will support their plans for growth.”
“The sale of the Seal Sands site is part of our approach to focus on the core assets of our polyamide value chain,” said Dr. Harald Lauke, President of BASF Performance Polymers division.
“I am confident that the integration of this site and its workforce into INEOS Nitriles, a company committed to a long-term participation in the acrylonitrile business, will be the best guarantee of continued future success for the Seal Sands site,” said Bernd Brian, BASF Site Director at the Seal Sands site.
BASF plc has around 240 employees at the site. On completion these employees will transfer their employment to INEOS Nitriles. INEOS Nitriles will also take over all existing supply and service arrangements.
For further information please contact:
Richard Longden
Phone: +44 7710 371998
Email: richard.longden@ineoscapital.com
Charles Saunders – INEOS Nitriles
Phone: +1 (281) 535 6630
Email: charles.saunders@ineos.com
Note to editors:
INEOS is the world’s third largest chemicals company; a leading manufacturer of petrochemicals, specialty chemicals and oil products. Comprising 18 businesses, with production network spanning 76 manufacturing facilities in 20 countries, the company produces more than 32 million tonnes of petrochemicals, 20 million tons per annum of crude oil refined products (fuels). INEOS employs 16,600 people and has sales of around $45bn.
INEOS Nitriles (www.ineosnitriles.com) is the only Acrylonitrile and Acetonitrile producer with capacity in the Americas and Europe with facilities at Lima, Ohio (US), Green Lake, Texas (US) and Köln (Germany). It employs 370 people and has a turnover of around $1.8 bn (£900m). Key applications for Acrylonitrile and Acetonitrile include the production of ABS, Polyacrylamide, synthetic fibres (such as acrylic, nylon and carbon), engineering plastics, solvents, synthetic rubber and resins. These products are used in a diverse range of end industries, including the textile, automotive, building construction, household appliance and electronic equipment, sporting goods, water treatment and pharmaceuticals.
BASF (www.basf.com) is the world’s largest chemical company with more than 150 production sites worldwide and over 95,000 employees and posted sales of almost €58 billion in 2007. Headquartered in Ludwigshafen, Germany, where the company operates the world’s largest integrated chemical complex, the BASF Group comprises more than 160 subsidiaries and affiliates. BASF shares are traded on the stoc