INEOS to close PVC facility in UK, sells fluorochemicals business
25 Feb 2010
Grangemouth, UK - INEOS ChlorVinyls is to close its PVC production facility in Barry, Wales and consolidate production at its other two UK facilities, at Runcorn, Cheshire and Newton Aycliffe, County Durham. The move, it said, is in respond to a steady decline in demand for the polymer material over recent years.
The company aims to minimise job losses by offering employees at the Welsh plant employment at its other facilities. The consolidation plan, however, is due to be completed by the end of Q2/10 ’at the very latest, added INEOS - the UK’s sole PVC producer.
“The consolidation of our PVC operations will underpin security of supply to our UK customers whilst at the same time delivering an improved cost base,” said Geir Tuft, business manager. “Streamlining our asset structure in the UK will allow us to concentrate on sites that will deliver long-term growth and value to the business.”
In a separate move, INEOS has decided to sell its fluorochemicals business to Mexichem Fluor SA de CV, part of Mexichem SA de CV – a Latin American producer of PVC pipes and resin, chloralkali, hydrofluoric acid and fluorspar. The UK group said the sale is part of a strategy to focus more on its large-scale petrochemicals businesses.
“The agreement presents a unique opportunity to bring together the world’s largest supplier of fluorspar, with our own world leading fluorochemical production assets, customer base and research capabilities,” said David Price, CEO INEOS Fluor. The investment by Mexichem shows real commitment and confidence in the future of fluorochemicals, as a strategic business.”
The sale includes the international business and assets related to INEOS’ fluorochemical operations located in North America, Europe, and Asia. The business is become part of an integrated, global producer of speciality fluorochemicals with worldwide presence and annual sales revenue of over US$500 million.
INEOS Fluor supplies fluorine-based products, technology and services across a number of major industries from pharmaceuticals to automotive, refrigeration and air-conditioning. The company employs around 350 people across sites in the Europe, North America and Asia.
