BASF, INEOS sign joint venture contract to form Styrolution
30 May 2011 12:12 [Source: ICIS news]
LONDON (ICIS)--BASF and INEOS have signed a joint venture contract to regulate the formation of a new styrenics business called Styrolution, the petrochemicals majors said on Monday.
The 50:50 Styrolution joint venture, which will be headquartered in Frankfurt/Main, ?xml:namespace>Germany, will see the firms combining their global businesses in styrene monomers (SM), polystyrene (PS), acrylonitrile-butadiene-styrene (ABS), styrene-butadiene block copolymers and other styrene-based copolymers, as well as copolymer blends, BASF and INEOS said in a joint statement.
BASF and INEOS will continue to independently operate their styrene businesses until the completion of the deal, which is expected later this year, they said.
A letter of intent was signed by the two companies on 29 November 2010 and the joint venture is still subject to approval by antitrust authorities.
Styrolution will be a leading global company for styrenics, said BASF vice chairman Martin Brudermuller.
“Styrolution will be capable of meeting the long-term needs of a rapidly changing market as it competes effectively with large-scale producers from Asia and the Middle East,” said Jim Ratcliffe, chairman of INEOS Capital.
BASF's styrenics production plants located at Ludwigshafen and Schwarzheide in Germany; Antwerp, Belgium; Ulsan, South Korea; Dahej, India; and its Altamira site in Mexico, will become part of the joint venture company.
Meanwhile, INEOS's ABS production plants at sites in Cologne, Germany; Tarragona, Spain; Vadodara, India; and at the Map Ta Phut, Thailand, will be included in the joint venture.
INEOS' SM and PS operations in Sarnia, Canada; Marl, Germany; Wingles, France; Trelleborg, Sweden; as well as its production sites in Indian Orchard, Joliet, Decatur, Texas City and Bayport in the US will all be injected into Styrolution.
Styrenics are mainly used for household and office products, electrical and communication devices, and packaging.By: Franco Capaldo+44 (0)20 8652 3214
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial
to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free
trial to ICIS Chemical Business.