Ineos to buy more BP businesses

London - Ineos has agreed to acquire BP’s Vinyl Acetate Monomer (VAM) and Ethyl Acetate (EtAc) businesses. The deal, for an undisclosed sum, comprises 500ktpa of production capacity at the Saltend manufacturing site near Hull, along with the Teesside to Saltend ethylene pipeline. The two facilities had a combined sales revenue in 2007 of around $400m. They employ around 40 people.

“The addition of these facilities broadens the Ineos portfolio of oxygenated solvents, optimises existing links with our Grangemouth site and helps us to meet the growing demand for both products," according to Ineos chairman Jim Ratcliffe.

The ethyl acetate plant was commissioned in 2001 and has a capacity of 250ktpa, making it one of the world’s largest single facilities. Its products are used in the manufacture of printing inks, glues, paints, packaging, cosmetics and pharmaceuticals. The vinyl acetate monomer plant, which also has 250ktpa capacity, was commissioned in 2002 and supplies an essential raw material for paints, adhesives, floor coverings and clothing production.

“The sale of our acetate businesses concludes an important part of our strategy to re-focus BP’s operations at the Saltend site,” commented Dave Smith, general manager of BP European Acetyls. “The sale will allow us to focus on our commitment to supply acetic acid and acetic anhydride to customers around the world.”