BASF, INEOS to form joint venture
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Global chemical companies BASF and INEOS are entering into a joint venture to produce styrenics; they plan to establish a new company called Styrolution.
The announcement comes after the European Union’s antitrust authorities cleared the creation of the JV last week. U.S. authorities have already approved the JV without setting conditions.
The deal is expected to close by the end of the year.
According to a BASF announcement, the two companies will combine their work in styrene monomers, polystyrene, acrylonite butadiene styrene, styrene-butadiene block copolymers and other styrene-based copolymers.
INEOS will contribute production from its styrenics sites in Sarnia, Ont. and from its sites in the U.S., Germany, France, Sweden, Germany, Spain, India and Thailand. BASF will contribute production from plants in Germany, Belgium, Korea, India and Mexico.
According to Jim Ratcliffe, chairman of INEOS Capital, the venture will help both companies compete with large-scale producers from Asia and the Middle East.