June 10, 2019 [Chemicals Technology] – UK-based chemical firm Ineos has signed an agreement to build three new chemical plants in Saudi Arabia.
Overall, the firm will invest $2bn to build the facilities. The company entered a memorandum of understanding (MoU) with Saudi Aramco and France’s Total to build the new plants at Jubail 2 petrochemical complex.
Ineos will build a 425,000t acrylonitrile plant, a 400,000t linear alpha olefin (LAO) plant and an associated polyalphaolefin (PAO) facility. Scheduled to begin production in 2025, the plants will produce key building blocks for carbon fibre, engineering polymers and synthetic lubricants.
Ineos chairman Jim Ratcliffe said: “This is a major milestone for Ineos that marks our first investment in the Middle East. The timing is right for us to enter this significant agreement in Saudi Arabia with Saudi Aramco and Total.
“We are bringing advanced downstream technology, which will add value and create further jobs in The Kingdom.”
Through Ineos Nitriles, Ineos is one of the largest producers of acrylonitrile and acetonitrile. It also has four manufacturing plants, two of which are in the US while others are situated in Germany and the UK.
The firm also maintains a worldwide network of LAO and PAO production plants and bulk storage locations through Ineos Oligomers. Ineos said that the location of these facilities in Saudi Arabia will give it access to competitive raw materials, energy and supporting infrastructure.
These facilities will also be used the company to cater to its clients across the Middle East and Asia.
The investment in Saudi Arabia is part of the company’s growth strategy. In January, it announced plans to build a new propane dehydrogenation (PDH) plant and an ethane cracker unit in Port of Antwerp, Belgium with a $3.4bn investment.
Ineos has also made a £1bn investment in the UK, made acquisitions in China and undertaken capacity expansion work at its US Gulf Coast, Alabama and Chocolate Bayou facilities.