Ineos Styrolution to Build ABS plant in China
Ineos Styrolution is planning to build a 600,000 t/y greenfield plant to produce ABS in eastern China. The new facility is to be built adjacent to the polystyrene complex at Ningbo in Zhejiang Province it acquired from French energy and petrochemicals group Total in February last year. That deal also included a PS plant at Foshan and two related offices in Guangzhou and Shanghai.
The Frankfurt, Germany-headquartered company considered to be global leader in styrenics announced the plans a day after US financial newspaper Wall Street Journal (WSJ) reported the investment, citing “a person familiar with the matter.”
Construction on the world-scale production unit is due to begin this year, with completion planned for 2023. While Ineos Styrolution did not disclose the cost of the plant – which it said it will wholly own – WSJ put it at $800 million.
With an expansion coming less than a year after acquiring the Ningbo premises, Styrolution said it is embarking on plans to grow its production capacity in China “significantly.”
The Ningbo investment is part of a wider Strategic Cooperation Framework Agreement the Swiss-based multinational signed with the Ningbo Municipal People’s Government on Jan 9. This, it said, “will help facilitate mutual benefit between Ineos and Ningbo City.”
“China is the biggest ABS market in the world. This new investment will give us a tremendous opportunity to provide our customers in the region with locally produced ABS grades,” said Steve Harrington, president Global Styrene Monomer and Asia-Pacific at Ineos Styrolution. CEO Kevin McQuade said the company “is committed to supporting our Chinese customers’ growth with our new local production capacities.”
China is not only the biggest market for ABS, but also has the largest production volume, with Ningbo one of the leading sites. Most of the companies producing locally are Chinese but other globally active styrenics players, many of them Asian, are also active in the People’s Republic.
