European integrated Ineos will buy BP's global paraxylene (PX), purified terephthalic acid (PTA) and acetyls businesses for $5bn, a move that will provide it greater scope for expansion and integration into its existing business.
"This acquisition is a logical development of our existing petrochemicals business, extending our interest in acetyls and adding a world leading aromatics business supporting the global polyester industry," said Ineos' chairman Jim Ratcliffe. The firm will buy the BP assets through its wholly-owned Ineos Styrolution.
PX is a key feedstock for PTA that, in turn, is a significant user of acetic acid as a catalyst in the production process. These BP businesses have been sought after for their technology and solid growth prospects, key reasons why the firm has until now resisted selling them. The global polyester market has seen steady growth over the years, except in 2009, when the global financial crisis struck.
The deal will give Ineos a PX/PTA business for the first time, with global PTA production of 6.5mn t/yr and PX production of 1.85mn t/yr.
In Europe, the deal includes acetic acid and acetic anhydride units in Hull, UK, and PTA and PX plants in Geel, Belgium. The 400,000 t/yr acetic acid unit (A4) and a smaller acetic acid/acetic anhydride swing production unit (A5) at Hull will allow upstream integration for a 300,000 t/yr vinyl acetate monomer (VAM) unit on the same site, which Ineos has said will be operational by 2022. The 1.37mn t/yr PTA plant in Geel is the largest in Europe, and its acquisition will make Ineos the second largest European PTA producer behind Bangkok-based Indorama.
BP will retain xylenes production at its Gelsenkirchen, Germany, petrochemicals site that is heavily integrated into its 265,000 b/d refinery there. The site includes 175,000 t/yr PX, 65,000 t/yr orthoxylene and 175,000 t/yr mixed xylene units.
In the US, Ineos will take on BP's PTA assets in Cooper River, South Carolina, PX and metaxylene units in Texas City, and an acetic acid production agreement between Eastman and BP also in Texas City. BP's 36.9pc stake in Atlas Methanol is also included.
In China, Ineos will control a 91.9pc stake in a PTA site in Zhuhai, a 51pc interest in acetic acid and acetate esters units in Chongqing, and a 50pc interest in an acetic acid unit in Nanjing. Also included in the deal are a PTA unit in Merak, Indonesia; a 70pc stake in an acetic acid plant in Kertih, Malaysia; a 50.9pc interest in acetic acid and vinyl acetate monomer unit in Ulsan, South Korea; a 61.4pc stake in a PTA unit in Taichung, Taiwan; and a 50pc holding in an acetic acid unit in Mai Liao, Taiwan. All will be transferred to Ineos along with BP technology and licenses.
