MOSCOW (MRC) -- INEOS has completed the purchase of Mitsui Phenols Singapore in a USD330m deal, giving the UK-based firm over 1m tonnes/year of additional Asia production capacity, said the company.
Based on Jurong Island, Singapore, the entire asset base of the Mitsui subsidiary will be transferred to INEOS. The business has a production capacity of 410,000 tonnes/year of cumene, 310,000 tonne/year of phenol and 185,000 tonnes/year of acetone.
Mitsui Phenols Singapore can also produce 150,000 tonnes/year of bisphenol A (BPA) and 20,000 tonnes/year of alpha-methylstyrene, the company added. The division has an annual turnover of USD750m, with the sale intended to reduce earnings volatility for Mitsui, the company said at the time of the announcement of the deal.
Prior to the INEOS deal, Mitsui Phenols Singapore was 95%-owned by Mitsui Chemicals and 5% held by Mitsui & Co. The parent company agreed to transfer its minority stake to Mitsui Chemicals prior to the close of the sale.
The Jurong phenol chain and BPA assets offer integration opportunities with related INEOS assets in Germany, Belgium and the US, the company said, as well as growing its footprint in Asia and opening up new markets in the region. “We look forward to developing new markets and customer relationships associated with bisphenol A which will be a new product for INEOS” said Gordon Adams, business director for INEOS Phenol.
We remind, INEOS Energy is entering US oil and gas production for the first time with the acquisition of a portion of Chesapeake Energy’s oil and gas assets in the Eagle Ford shale, south Texas for USD1.4 billion. The deal marks INEOS Energy’s entry as operator into the US onshore oil and gas market, as it acquires 2,300 wells, producing net 36,000 BOED. The acquisition, which includes production and exploration leases across 172,000 net acres, is expected to complete in Q2, with an effective date of October 2022.