09 May 2012 14:43 [Source: ICIS news]
LONDON (ICIS)--INEOS Olefins & Polymers Europe is considering the divestment of its high density polyethylene (HDPE) businesses at Rosignano, Italy and Sarralbe, France, the company said on Wednesday.
The sites represent 37% of the firm’s nameplate HDPE capacity in Europe but are not integrated upstream to a cracker.
The company said it wanted to focus resources on its production assets that are highly integrated upstream and downstream. These include the cracker complexes in Cologne, Germany; Rafnes, Norway; Lavera, France; and Grangemouth in the UK.
INEOS produces HDPE in Europe in Lillo, Belgium and in Lavera.
The Rosignano and Sarralbe businesses are both profitable and “cycle resistant”, INEOS Olefins & Polymers said. They produce “a sophisticated range of differentiated polymers with top quartile SHE [safety, health and environmental], reliability and cost leadership”, it added. Both plants produce pipe-grade material.
The sites each have the capacity to produce 200,000 tonnes/year of HDPE and were acquired from BP in 2005. INEOS Olefins & Polymers Europe has a total HDPE nameplate capacity of 1.075m tonnes/year, according to company data.
Although not integrated with INEOS feedstocks, the businesses have the potential to grow further, INEOS said.
INEOS Olefins & Polymers Europe said it had revealed the outcome of a strategic review of these and other assets in its portfolio at an early stage in the evaluation process so discussions could take place with employees, works councils and interested third parties.
“The outcome of these discussions is not considered to be a foregone conclusion, as INEOS will only divest these sites if it is in the interest of its business and the long term future of these sites,” it added.
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