INEOS has reached an agreement with BP to acquire the Vinyl Acetate Monomer (VAM) and Ethyl Acetate (EtAc) businesses from the company. The acquisition is being is conditional to approval from the EU competition authorities. The transaction is expected to close in the first quarter 2008.The deal comprises of the following facilities: a 500,000 tpa plant at Saltend near Hull, UK, and the Teesside to Saltend Ethylene Pipeline (TSEP). With this acquisition, INEOS will optimise existing links between the Hull and Grangemouth sites. The acquisition of BP's Acetate businesses broadens the INEOS portfolio of oxygenated solvents and complements the portfolio, technologies and expertise of INEOS.
The Ethyl Acetate plant was commissioned in 2001 and has a capacity of 250,000 tpa, making it one of the world's largest single Ethyl Acetate facilities. Ethyl Acetate is used in the manufacture of printing inks, glues, paints, packaging, cosmetics and pharmaceuticals. The 250,000 Vinyl Acetate Monomer plant was commissioned in 2002 and supplies an essential raw material for paints, adhesives, floor coverings and clothing production.
Upon completion, products from the newly acquired businesses will be integrated into the portfolios of INEOS Oxide and INEOS Enterprises. Ethyl Acetate will become part of the INEOS Oxide solvent portfolio and will be supplied through existing channels to market alongside butyl acetate, glycol ethers and glycol acetates. Vinyl Acetate Monomer will add a new product line to the INEOS Enterprises business and will reinforce its strategy of growth through acquisition of businesses with good manufacturing facilities combined with sufficient size and scale for growth. It is expected that INEOS Enterprises will assume overall responsibility for operating both facilities.