Ineos Barex and MSM Poly have signed a Memorandum of Understanding (MoU)for the potential sale of intellectual property (IP) and production support for the Barex product line. The non-binding agreement would allow MSM Poly to purchase all IP from Ineos as well as specific physical assets, commercial/operational support as well as supply of Barex resin.

In August 2015, Delaware, USA-based MSM Poly started producing acrylonitrile methyl acrylate copolymer (AMAC), a similar product to Barex resin, following Ineos’ announcement in October 2014 that it would close the business. Ineos has continued to operate since then in an effort to meet guaranteed production volumes for contracted customers.

Ineos Barex CEO Paul Overment said the MoU allows both groups to move forward while providing some assurance to current Barex users that the brand would be available post its exit. Both parties said they were working toward completing the transaction during this quarter.

Swiss-based Ineos Barex is the parent of Ineos Barex USA, which currently manages the production site in Lima, Ohio. Production is expected to end in the third quarter. followed by dismantling of the assets. Ineos’ two additional businesses at Lima are unaffected by the Barex closure.

AMAC is being toll-produced for MSM Poly by Tiarco Chemical at a plant in Greenville, South Carolina. Both companies are negotiating for long-term production of AMAC at the Greenville facility in parallel with current developments there.