Ineos Continues Acquisition Spree in US, Taking Over LyondellBasell's Ethylene Oxide Business

Following the acquisition of Eastman's Texas City plant for $500 million, on December 8, 2023, Ineos took over LyondellBasell's ethylene oxide business, and the production plant in Bayport, Texas, at a cost of approximately $700 million.

Ineos has entered into an agreement with LyondellBasell to purchase ethylene oxide and its derivatives businesses, including the 420,000 tonne/year ethylene oxide plant, 375,000 tonne/year ethylene glycol plant and 165,000 tonne/year ethylene glycol ether plant, and all related operations at the site.

LyondellBasell's plant in Bayport produces high-quality ethylene oxide and its derivatives. This highly integrated chemical plant takes advantage of America's cost-effective energy, raw material and logistics networks.

Ethylene oxide is an important raw material for large-scale chemical production and is widely used in the production of pharmaceuticals, cosmetics, semiconductors, polyester, food packaging, building materials, antifreeze, brake fluid, solvents, paints, soaps and detergents.

Tobias Hannemann, Chief Executive Officer of Ineos Oxide, said: "We are delighted to announce this strategic acquisition. Ineos is a leading producer in Europe and this important move expands its ethylene oxide and derivatives business into the United States, the world's largest market. Our existing ethanolamine production facility is located in Plaquemines, Louisiana."

Peter Vanacker, CEO of LyondellBasell, said: "This transaction demonstrates LyondellBasell's focus on value creation. The ethylene oxide and its derivatives business has obvious advantages, easy access to raw materials, and there is a reliable and efficient team. We are pleased to have reached an agreement with Ineos that will enable the business to continue to create value under different ownership."

All existing employees at Lyondell's Bayport Basell plant, as well as some who work off-site, will be transferred to Ineos upon completion of the deal. Subject to regulatory and other third party approvals, the transaction is expected to close in the second quarter of 2024.