INEOS Nitriles and Tianjin Bohai Chemical Industry Group Corporation have signed a non binding Heads of Terms, setting out their intention to establish a 50/50 Joint Venture, to build and operate a world scale Acrylonitrile plant to be located in Tianjin, China.
It is expected that the plant, which will be designed using the latest INEOS process and catalyst technology, will be completed by the end of 2016.
The initial annual capacity of the new facility will be 260,000 tonnes of Acrylonitrile with an expectation of possible future expansion, in line with growing demand across Asia.The final agreement is subject to confirmation of satisfactory project costs and conclusion of discussions with the local authorities.
The partnership will benefit from Tianjin Bohai Chemical's operating capability, local feedstock advantages and proximity to derivative growth markets. INEOS will provide commercial expertise and production 'know-how', as well as its proprietary Acrylonitrile process and catalyst technology.
Located in Tianjin, the new plant will be well positioned close to one of the most rapidly growing centres of China's Acrylonitrile demand, with easy access to customers throughout Asia.
"This is the second Joint Venture project INEOS has announced in China this year" said Jim Ratcliffe, Chairman of INEOS. "In March INEOS Phenol initialed a joint venture agreement with Sinopec YPC for the design, build and operation of a 1.2 million tone cumene, phenol and acetone complex at Nanjing.
"Both Joint Ventures bring together our world leading technology with a strong Chinese partner. They will add up to a total investment across all partners of more than $1 billion."
The Joint Venture with Tianjin Bohai Chemical reinforces INEOS' commitment to serve its Acrylonitrile customers globally by extending production to cover Asia, the world's fastest growing market. The investment positions INEOS as the only producer in the world to have capacity in each of the world's largest Acrylonitrile markets.
"This is an important investment for the Nitriles business in Asia to support our customers' growing needs across the region," said Rob Nevin, CEO of INEOS Nitriles. "We are very pleased to be building this new facility with Tianjin Bohai Chemical through the formation of the Joint Venture.
"Our partnership is set to bring considerable value to both companies and their customers. Bringing together our proprietary Acrylonitrile technology, with Tianjin Bohai Chemical's expertise and advantaged feedstocks, presents a formidable combination."
