INEOS chooses Hull for £150m VAM plant as part of £1bn overall UK investment

LONDON (ICIS)–INEOS has announced Hull in the northeast of the UK as the location for its new 300,000 tonnes/year vinyl acetate monomer (VAM) plant, as the privately-owned chemicals major on Wednesday committed to investing £1bn in its UK facilities.

The company initially announced its plans to build a VAM plant in Europe in September 2017, with Antwerp in Belgium and Cologne in Germany also mooted as possible locations at the time.

“This is an exciting time for INEOS and great news for manufacturing in the region,” said INEOS Oxide CEO Graham Beesley.

“We are proud to be bringing production of this important material back to the UK. This will not only strengthen UK manufacturing but boost exports from the UK to [the rest of] Europe and the rest of the world.”

Elsewhere, the largest of the three investments announced on Wednesday will be in the Forties Pipeline System (FPS), where INEOS will spend £500m in upgrading the asset and extending its lifeline into the 2040s.

INEOS purchased the FPS from chemicals and energy major BP in November 2017.

“INEOS intends to overhaul the reliability of the 500km pipeline system, including modernising the environmental systems and implementing the latest technology into its systems,” the company said.

The third investment will be in a new £350m steam and power plant at INEOS’ Grangemouth facility, which will deliver improved energy efficiency, it said.

“At an uncertain moment for the country, INEOS has confidence in its businesses and is committed to continue investing in manufacturing and high-skilled jobs in the UK,” said INEOS’ majority owner Jim Ratcliffe.

Pictured: INEOS’ Hull facilities
Source: INEOS