INEOS is to invest GBP60 million in the UK to expand production at its Grangemouth site

MOSCOW (MRC) -- INEOS has announced plans to invest GBP60 million to expand its Grangemouth site. It has awarded a contract to build an additional furnace on its KG ethylene plant to Selas-Linde GmbH, Germany, as per the company's press release.

This significant investment affirms the Company’s commitment to UK manufacturing at a time when it is in decline across many industrial regions across the country. The addition of a tenth furnace, will improve efficiency of the plant and increase its production capacity, to ensure the business can continue meet growing demand for its products.

John McNally, CEO of INEOS O&P UK says: "Our plans to invest in the UK with the further expansion of our plant at Grangemouth, has been made possible because we now have access to the raw materials that we need. The successful completion in 2016 of our project to bring to Grangemouth plentiful supplies of competitive US shale gas ethane over a long-term agreement, has breathed new life into the plant."

"Production from Grangemouth provides vital raw materials used extensively throughout UK industry. Having additional furnace capacity, will provide a range of future opportunities not just for INEOS and for the site but also for the heartlands of manufacturing in Scotland and the North East and North West of England."

"It is entirely fitting that we make this announcement in the year we celebrate 25 years of continuous manufacture of ethylene on the KG plant. Investment into our Chemicals’ business in Scotland alone has already surpassed ?500m in the last 5 years. This latest announcement demonstrates INEOS’ on-going commitment to its manufacturing operations at Grangemouth and investment into the UK."

Subject to planning approval, preparatory project work will begin later in 2018, with the main construction work starting in 2019 and commissioning towards the end of 2020.

As MRC reported earlier, in June 2017, petrochemical giant Ineos unveiled plans to increase the ethylene capacity of its cracker facilities at Grangemouth in Scotland and Rafnes in Norway to over 1 million tonnes each. The company currently produces nearly 4.5 million tonnes of ethylene and propylene annually across Europe, but remains the largest buyer of ethylene and propylene in the region.

INEOS Group Limited is a privately owned multinational chemicals company consisting of 15 standalone business units, headquartered in Rolle, Switzerland and with its registered office in Lyndhurst, United Kingdom. It is the fourth largest chemicals company in the world measured by revenues (after BASF, Dow Chemical and LyondellBasell) and the largest privately owned company in the United Kingdom.
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MOSCOW (MRC) -- INVISTA plans to add 40,000 tons of nylon 6,6 polymer capacity at its current 150,000-ton polymer plant at the Shanghai Chemical Industry Park (SCIP), as per BusinessWire.

Construction is targeted for mid-2019 and production would begin in 2020.

"In looking at our forecast for the future growth of the nylon 6,6 polymer market, we see increased demand in Asia and are expanding our capacity to meet that demand."

"We are continuing to make strategic investments to best meet our customers’ needs," said Pete Brown, INVISTA vice president of nylon polymer. "In looking at our forecast for the future growth of the nylon 6,6 polymer market, we see increased demand in Asia and are expanding our capacity to meet that demand."

This project aligns with INVISTA’s other recent announcements regarding additional capacity in the nylon 6,6 value chain:

- new adiponitrile (ADN) plant announced for China by 2023;
- additional ADN capacity resulting from retrofits of INVISTA’s latest ADN technology at Butachimie, INVISTA’s joint venture with Solvay in France in 2019; and at INVISTA’s Victoria, Texas, site, targeted for 2020;
- ADN production records at INVISTA’s Orange, Texas, site.

Brown added, "We’ve invested more than USD1 billion in the nylon 6,6 value chain in the past five years, have recently committed to investing USD1 billion more and are continuing to evaluate the market for additional opportunities in the future."

INVISTA also has a 215,000-ton hexamethylenediamine (HMD) plant at SCIP.

As MRC informed previously, to combat a global shortage of nylon 6/6 resin, materials firm INVISTA will build a USD1 billion plant in Shanghai making adiponitrile, a key nylon 6/6 feedstock that’s been in short supply, the company announced in April 2018.

INVISTA ranks as one of the world’s largest producers of fibers and related specialty chemicals and resins.
MRC

MOSCOW (MRC) -- Versalis (Eni) has opened a new EPDM rubber production plant in Ferrara today, which will mainly supply the automotive industry, said the company.

The new facility is an excellent example of reindustrialization of an Italian production plant. Over 250 million euros were invested in the project, which involved constructing a new production line on a land which was reclaimed and duly authorized for renewed industrial use, and the revamping of the existing elastomer plant.

This investment in Ferrara will increase overall production capacity by around 50 thousand tonnes per year. It will also enable the company to update its elastomer product range and boost job numbers, with 45 new staff to be added to production and related services, plus a further 50 people to outsourced activities. An average of 550 people worked on site during the construction and the majority of the materials were supplied by Italian companies.

The investment further strengthens Versalis’ presence in the area, facilitated by working closely with local institutions throughout the authorisation process, which was completed in just one year.

Ferrara plays a key role in Versalis’s production system, with 330 employees and an average of 180 contractors a day. As well as elastomers production, the complex also includes production facilities for low-density polyethylene (LDPE) and a major research centre.
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MOSCOW (MRC) -- MPM Holdings Inc.and SJL Partners LLC, KCC Corporation and Wonik QnC Corporation announced that they have entered into a definitive merger agreement whereby the Investor Group will acquire Momentive in a transaction valued at approximately USD3.1 billion, including the assumption of net debt, pension and OPEB liabilities, as per Businesswire.

Based in Waterford, New York, Momentive develops and manufactures specialty silicones and silanes, as well as fused quartz and specialty ceramics products. Momentive has a more than 75-year track record of creating products and solutions to serve more than 4,000 customers in over 100 countries. The Company has a global network of 24 production sites and 12 research and development facilities.

Under the terms of the agreement, which has been unanimously approved by the Boards of Directors of Momentive, KCC and Wonik, the investment committee of SJL and by requisite vote of Momentive’s stockholders, the Investor Group will assume Momentive’s net debt obligations subject to minimum closing cash requirements of USD250 million. Momentive stockholders will receive USD32.50 for each share of common stock they own subject to minimum closing cash requirements.

The transaction will be financed through a combination of cash and new debt that will be put in place at closing. The transaction is not subject to any financing contingency and is expected to close in the first half of 2019, subject to regulatory approvals and other customary closing conditions.

Goldman Sachs & Co LLC and Moelis & Company LLC are serving as financial advisors to Momentive. Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as primary legal counsel to Momentive. UBS Investment Bank is serving as financial advisor to the Investor Group, and Greenberg Traurig, LLP is serving as legal counsel.

Momentive is a global leader in silicones and advanced materials, with a more than 75-year heritage of being first to market with performance applications that support and improve everyday life. Momentive delivers science-based solutions for major industries, by linking its custom technology platforms to allow the creation of unique solutions for customers.
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MOSCOW (MRC) -- Venator Materials PLC announced the completion of the strategic review of its Pori, Finland TiO2 manufacturing facility, said the company on its website.

As a result of unanticipated cost escalation and extended timeline now understood to be associated with the reconstruction of the Pori, Finland TiO2 facility, Venator will transfer certain technology, and the production of select product grades, to other facilities within its current manufacturing network, which will become more efficient with greater flexibility. The Pori, Finland facility will continue to operate at reduced rates through the transition period, which is expected to last through 2021.

Simon Turner, President and CEO of Venator, commented: "Following an intense review, we have decided to close our Pori, Finland titanium dioxide facility and implement this product transfer and strengthening plan. We expect this plan to provide a better economic return than alternative options while maintaining the quality of Venator's specialty and differentiated business in order to service our valued customers.

"Closing the site is the best decision for the long-term success of our business, as we expect to restore the majority of our specialty and differentiated earnings formerly generated by Pori, using our existing facilities. We also believe doing so will preserve our financial flexibility and improve our ability to deliver free cash flow throughout the cycle.

"We recognize and regret the impact this decision will have on our associates at Pori. We will treat them with fairness and respect consistent with our values and established practices."

Venator is a global manufacturer and marketer of chemical products that comprise a broad range of pigments and additives that bring color and vibrancy to buildings, protect and extend product life, and reduce energy consumption. We market our products globally to a diversified group of industrial customers through two segments: Titanium Dioxide, which consists of our TiO2 business, and Performance Additives, which consists of our functional additives, color pigments, timber treatment and water treatment businesses. We operate 25 facilities, employ approximately 4,500 associates worldwide and sell our products in more than 110 countries.
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