Chemicals company Sasol Chemicals North America and US-based Ineos Olefins & Polymers have reached a final investment decision to form a joint venture (JV) to build a high-density polyethylene (HDPE) plant in LaPorte, Texas.
The 50:50 JV plant, which was expected to become operational in 2016, would produce 470 000 t/y of bimodal HDPE using Ineos Technologies’ Innovene S process technology. The ethylene required for the production of the HDPE would be supplied by Sasol and Ineos in proportion to their respective ownership positions.
"This project will expand Sasol's presence in the global chemicals market and complement our North American growth strategy. Its location offers several benefits, including access to US Gulf Coast infrastructure and proximity to our current and proposed ethane cracker and derivatives complex in south-west Louisiana,” Sasol global chemicals group executive Fleetwood Grobler said.
Ineos would operate the HDPE plant, which will be located at its Battleground Manufacturing Complex.
"This investment will allow Ineos to meet our customers’ needs for additional bimodal products. It also supports Ineos' strategy to invest and to capture synergies on our major sites,” Ineos CEO Dennis Seith said.
The definitive agreements for the construction of the plant were being finalised and all relevant permits had been obtained. The companies did, however, note that, as the plant would be debt financed, the investment decision was conditional on achieving financial close.