18 January 2007 00:50 [Source: ICIS news]
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LONDON (ICIS news)--INEOS Polyolefins will invest more than €150m ($193m) in its European assets during the next three years, lifting polypropylene (PP) and high density polyethylene (HDPE) capacities at sites in Belgium and the UK, the company said in a statement distributed on Wednesday.
INEOS said it was making the move to strengthen its market position in products where it believes it has a long term competitive advantage.
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At Geel, INEOS will replace older, unprofitable, production capacity with increased production from its PP2 facility.
The 220,000 tonne/year expansion would make the Geel plant one of the largest PP production plants in the world based on the world-leading Innovene P gas phase technology, INEOS said.
Geel’s capacity would reach 500,000 tonnes/year after the upgrade.
At Grangemouth, the company intends to debottleneck its current PP unit to 280,000 tonnes/year from 250,000 tonnes/year, and would consider a further 30,000 tonne/year expansion if appropriate.
INEOS said it would close its 185,000 tonne/year HDPE plant - the smaller and older of its two gas phase PE units - at Grangemouth at the end of 2007.
The HDPE output at INEOS’ Lillo manufacturing site would be increased by 200,000 tonnes/year to 630,000 tonnes/year, focused on differentiated products.
The new capacity would be in place by 2009.
(Additional reporting by Stephen Burns and Brian Ford in Houston)
($1 = €0.77)
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