LONDON, Jan. 27, 2011/PRNewswire-Asia/ -- INEOS Phenol and Sinopec Yangzi Petrochemical Company have signed a Memorandum of Understanding (MOU), agreeing the framework for the design and future operation of a phenol/acetone joint venture at the Nanjing Chemical Industrial park in Jiangsu Province, China.
The agreement is an important step as the two companies begin detailed discussions on the formation of the Joint Venture in Nanjing. The Memorandum was preceded by a Letter of Intent signed in December 2009 and follows a detailed evaluation of the investment.
The partnership will benefit from Sinopec's local feedstock advantages and INEOS' proprietary phenol technology.
The annual capacity of the new facility will be 400,000 tonnes of phenol and 250,000 tonnes of acetone making it the largest plant of its kind in China. The facility will also include 550,000 tonnes/year of cumene capacity. The location of the plant in Nanjing places it at the centre of China's strongest market for both phenol and acetone. It is currently expected that the project will be completed by the end of 2013.
Tony Traynor, CEO of INEOS Phenol states, "Signing the MOU is an essential step as we work towards establishing a Joint Venture and marks a major milestone in our relationship with Sinopec YPC. This joint venture will allow INEOS to bring its proprietary phenol technology to China and teaming with a strong, local partner like Sinopec YPC will bring considerable value to our business and our customers."
INEOS Phenol is the world's leading manufacturer of phenol and acetone with sites in Germany, Belgium, and USA (Alabama). China is the world's fastest growing market for phenol and acetone and Sinopec is China's leading producer of phenol and acetone with three production sites in Shanghai, Beijing, and Tianjin.
Note to editors
INEOS Phenol, (http://www.ineosphenol.com) currently has a nameplate capacity of 1870 ktpa of phenol and 1150 ktpa of acetone a year. It has a turnover of around EUR2.7 billion and employs 600 people worldwide. The company is the world's largest producer of Phenol and Acetone and the only manufacturer with production facilities both in Europe and America.
It is expected that the production from a JV facility with Sinopec YPC will serve the growing market for phenol and acetone in China and will free capacity at the company's European and US plants to meet growth in these regions. The completion of this new plant in China will increase INEOS Phenol's overall annual capacity to over 2.3 million tonnes of phenol and 1.4 million tonnes of acetone.
Phenol and Acetone are used in the production of polycarbonate, plastics, phenolic resins, synthetic fibres (such as nylon) and solvents. These products are used in a diverse range of endmarkets, including the automotive, construction, electronics and fibre industries.
INEOS (http://www.ineos.com) is one of the world's leading chemicals companies; a global manufacturer of petrochemicals, specialty chemicals and oil products. Comprising 15 businesses, with a production network spanning 60 manufacturing facilities in 13 countries, the company produces more than 40 million tonnes of petrochemicals, 20 million tons per annum of crude oil refined products (fuels). INEOS employs 15,000 people and has sales of around $40bn.
For further information contact:
Richard Longden
INEOS
Tel: +44(0)7710-371998
Mark Killick
Media Zoo
Tel: +44(0)20-7384 6980 / +44(0)7836-634449
Andrew McLachlan
Media Zoo
Tel: +44(0)20-7384 6980 / +44(0)7931-377162
Sion Taylor
Media Zoo
Tel: +44(0)20-7384-6980 / +44(0)7768-372714
Helen Morris
Media Zoo
Tel: +44(0)20-7384-6980 / +44(0)7917-646585
