Ineos Buys Ethylene Oxide Business from LyondellBasell

08.12.2023 - Ineos is continuing its buying spree in the USA and, after acquiring the Eastman Texas City site for around €465 million ($500 million), is now also taking over the ethylene oxide business of LyondellBasell, including the production plant in Bayport, Texas, for around €650 million ($700 million).

Ineos has agreed with LyondellBasell to purchase the ethylene oxide and derivatives business, including the Bayport, Texas site. The deal includes the 420 kt/year ethylene oxide plant, the 375 kt/year ethylene glycol plant and the 165 kt/year glycol ether plant together with all related third party businesses at the site for €650 million ($700 million).

The LyondellBasell Ethylene Oxide & Derivatives site in Bayport Underwood produces high-quality ethylene oxide and derivatives. The fully integrated site has access to cost-effective energy, raw material and logistics networks in the US and has an excellent track record and reputation in the market.

Tobias Hannemann, CEO INEOS Oxide commented, "We are pleased to announce this strategic acquisition. INEOS is a leading producer in Europe and this significant step expands its Ethylene Oxide & Derivatives business into the US, which is the world’s largest market. It also complements our existing Ethanolamines production facility in Plaquemine, Louisiana.

Ethylene oxide is an important raw material used in large-scale chemical production all over the world. It is needed for the production of pharmaceuticals, cosmetics, semiconductors, polyester, food packaging, building materials, antifreeze, brake fluids, solvents, paints, soaps and detergents. 

As recently as the end of September, Ineos announced that it had reached an agreement with Eastman Chemical to acquire the Texas City plant, including the 600 kt/year acetic acid plant and all related third-party activities on the site, for approximately  €465 million ($500 million). Ineos currently licenses the Cativa acetic acid technology to Eastman Chemical Texas City for the production of acetic acid at the site.