The two companies have also signed a memorandum of understanding (MoU) to explore options for a long-term supply agreement for vinyl acetate monomer.

David Brooks, CEO of Ineos Acetyls, commented: "We are delighted to announce this strategic acquisition which will help drive our global ambition for our Acetyls business. The site is ideally placed to take advantage of competitively priced feedstocks which will help support the growth of our business and sustainable future of the site."

Currently Ineos licenses its Cativa acetic acid technology to Eastman at Texas City for the production of acetic acid at the site.

“We are happy to have reached this agreement with Ineos. They have been a strong partner with us at the Texas City site and have extensive experience and a complementary position in the acetyls space,” said Erwin Dijkman, president of Eastman’s division Chemical Intermediates.

“Our Texas City Operations is an attractive site with an incredible team of people, and we are pleased that Ineos plans to further invest in and grow the site. We look forward to working closely with Ineos as we prepare for a seamless transition later this year, and longer-term as operators of our plasticizer assets at the site,” Dijkman added.

All current employees on the Eastman Texas City site will be transferred to Ineos upon completion of the transaction. The plasticizers unit on the site will continue to be owned by Eastman but will be operated and maintained by Ineos from closing.

The deal is expected to close before the end of 2023, subject to regulatory approvals.