INEOS and Sasol to build HDPE plant in Texas

INEOS Olefins & Polymers USA and Sasol Chemicals North America LLC have reached final investment decision to form a joint venture to build a high-density polyethylene (HDPE) plant in LaPorte, Texas. The 50/50 joint venture will produce 470 kilotons per annum of bimodal HDPE using Innovene S process technology licensed from INEOS Technologies. The ethylene required for the production of the HDPE will be supplied by INEOS and Sasol in proportion to their respective ownership positions. 

The investment will allow INEOS to meet its customer’s needs for additional bimodal products, according to Dennis Seith, CEO of INEOS Olefins & Polymers USA. INEOS will operate the HDPE plant at its Battleground Manufacturing Complex in LaPorte. Plant start-up is expected in 2016.

For Sasol, the project will expand its presence in the global chemical market and complement its North American growth strategy, according to Fleetwood Grobler, Sasol group executive for global chemicals. The definitive agreements are in the process of being finalized, and all relevant permits have been obtained. Because the plant will be debt financed, the investment decision is conditional on achieving financial close.

INEOS and Sasol initially announced their intention to form this joint venture in July 2013.