MOSCOW (MRC) -- Petrochemicals company Ineos will invest 2.7 billion euros (USD3.15 billion) to build a new chemical cracker and a propane dehydrogenation (PHD) unit in northwest Europe, the company said.
This is the first cracker to be built in Europe in 20 years and both facilities will benefit from US shale gas economics, it said, adding that the location of the site will be announced soon and the project will be completed in four years.
Jim Ratcliffe, Founder and Chairman of Ineos says, "This is the largest investment to be made in the European chemical sector for a generation. It will be a game changer for the industry and shows our commitment to manufacturing."
Ineos has approved a EUR2.7 billion capital project to build both a world scale ethane cracker and a PDH (Propane Dehydrogenation) unit in Northern Europe. Both units will benefit from US shale gas economics.
This will be the first new cracker built in Europe for two decades. It will also be one of the most efficient and environmentally friendly plants of its type in the world.
The location of the site will be determined soon and it is likely to be on the coast of North West Europe. A project team has been assigned to consider options and the project is expected to be completed within four years.
Gerd Franken, Chairman Ineos Olefins and Polymers North says, "This new project will increase INEOS self-sufficiency in all key olefin products and give further support to our derivatives business and polymer plants in Europe. All our assets will benefit from our ability to import competitive raw materials from the USA and the rest of the world".
This new investment follows a decision taken by Ineos last year to increase the capacity of its existing crackers.
Jim Ratcliffe adds, "Ineos is going from strength to strength. This new investment builds on the huge investment we made in bringing US shale gas to Europe and will ensure the long-term future of our European chemical plants."