TOUR FORCE DE 2019 REVIEW
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TOUR DE FORCE 2019 REVIEW INEOS eyes long-term vision and gears up for the future Team INEOS leads the pack
STRATEGY
in Europe, including the region’s
Image: David East
first cracker for over two decades,
marking its biggest-ever capital
expenditure on a single project.
“This is exactly the sort
of investment the European
petrochemical industry desperately
needs. It simply cannot continue
to run on 50-year-old assets,” says
Crotty. “Industries that don’t renew
themselves eventually wither.”
“We believe what we’re building
in Antwerp will be the most
competitive cracker complex in the
world and as good as anything in
the US or the Middle East. This is
HISTORY
essential for the future of European
petrochemicals.”
A further £1bn is also being spent
in the UK to revitalise core assets,
he adds. Half the budget has been
set aside to upgrade the Forties
IN THE MAKING
Pipeline System to extend its life.
Another £350m has been allocated
for a state-of-the-art steam and
power plant in Grangemouth, with
the remainder heading to Hull to
fund a 300,000 tonne/year vinyl
acetate monomer facility.
After 20 years establishing itself as one of the world’s “We’ve some important assets in
the UK and these are well worth
leading chemical companies, INEOS continues to grow nurturing too. This investment will
breathe new life into them,” he notes.
“We’ve never been a company that
T
he rapid growth of INEOS Sites such as change for us.” looks over our shoulders or at our
these past few decades has Grangemouth are That is not to say the company competitors. We do what we think is
seeing investment
been characterised by shrewd is not making strategic purchases right for our business.”
investments and great timing. where appropriate, he says. Indeed, In June, INEOS reached another
Whether acquiring businesses it recently expanded its portfolio major milestone by unveiling a $2bn
or transforming ageing plants into with the addition of Ashland’s plan to make its first foray into the
market-leading assets, this winning composites business, Flint Hills’ Middle East with the construction of
formula has helped create one of chemical intermediates segment, three world-scale plants.
the world’s leading manufacturers. as well as the titanium dioxide However, it is not just in
INEOS is now embarking on business from Tronox. INEOS petrochemicals where INEOS is
another exciting period in the Styrolution has also bought two breaking new ground.
company’s history, says Director of polystyrene plants in China. Recent years have seen it add a
Corporate Affairs, Tom Crotty. “Moving forward, we will still be clothing brand, improve fitness in
“All the success we’ve had to date making acquisitions where it makes schools, start a business to build a
has been through acquisitions and sense but we’ll be looking more at 4x4 off-road vehicle and launch a bid
now we’re moving into a phase “We’ve never been new builds too. Our scale is such that to win the elusive America’s Cup.
where we’re growing through a company that we could arguably rest on our laurels More recently, it has bought
investment,” he says. looks over our but that’s just not our style – we want French football club OGC Nice, won
“The ability to make sensible shoulders or at our to invest and grow,” he says. the Tour de France as Team INEOS
acquisitions, particularly in competitors. We “We think this is now a critical and supported running legend Eliud
petrochemicals, has become point for the industry, particularly Kipchoge as he attempts to run a
extremely limited over the last few do what we think in Europe, because the asset base marathon in under two hours.
years because we’ve been at top is right for our is aging and unless we address Whatever the challenge, it all
of cycle and therefore, we believe business” that, we’ll have trouble in the next comes down to teamwork, grit
asset values are priced too high. 10 years. We want to stay ahead and single-mindedness – and
For INEOS, it now makes far more by investing in the best available everyone involved shares the same
sense to build our own assets rather Tom Crotty, technology.” resolute determination to succeed,
than to buy them. Why would you Director of INEOS’s response was to notes Crotty. For INEOS, he says,
pay more for a used car rather than Corporate Affairs, announce a €2.7bn commitment to absolutely nothing is impossible.
for a new one? This is a huge step INEOS build a new petrochemical complex By Andy Brice
2
CIRCULAR ECONOMY
Too good to go to waste
Concerns about with a positive solution.” too. The business has successfully
INEOS has built on this produced virgin PS from
sustainability and the experience, he says, and is now depolymerised styrene monomer
environment have put also a supporter of industry-wide
initiatives such as Plastics 2030 –
in the laboratory – a first for the
industry. Hailed as a potential
plastic in the spotlight which looks to recycle or reuse 60% game changer, this paves the way
of plastics packaging by the end for commercial production within
of the next decade, and Operation the next 18-24 months, adds CEO
T
he positive effect plastic Clean Sweep that aims to prevent “There’s really no Kevin McQuade.
has on our everyday lives is plastic pellets, flakes and powders reason why we It also recently announced
undeniable yet it has been escaping into our waterways. should landfill a collaboration with waste
hitting the headlines for all the wrong It has pledged to meet its own management company Indaver
plastics or throw
reasons over the past few years. ambitious targets by 2025 too. that will capitalise on the Belgium
As one of the world’s leading INEOS has already ensured all of them away so firm’s Plastics2Chemicals
plastics producers, INEOS is its plastics are recyclable. It also they end up in the programme. This aims to find
committed to changing this wants to include at least 325,000 ocean. Plastics a safe and sustainable recycling
perception. Whatever its form and tonnes/year of recycled material in process for post-consumer plastics
are a valuable
function, whether pellet, pipe or its products, to use 30% recycled and includes the development of a
packaging, it has pledged to lead the content in its polystyrene (PS) used resource” 15,000 tonne/year demo plant in
industry in addressing this challenge. for packaging in Europe, and at least Antwerp by early 2021.
INEOS Olefins & Polymers, 50% for polyolefin-based packaging. Kevin McQuade, Another partnership with
INOVYN and INEOS Styrolution It also believes it can help deliver CEO, INEOS Canada-based clean technology
may deal with markedly different 900,000 tonnes/year of recycled PVC Styrolution company GreenMantra will
products, customers and through the VinylPlus scheme. harness proprietary catalytic
technologies, but they are all “The need to develop a circular depolymerisation technology
equally committed to finding more economy is well recognised and to convert waste PS into a low
sustainable solutions. making headlines around the molecular weight PS and recycled
A prolonged campaign to ban world. At the heart of this drive is styrene monomer that will feed into
polyvinyl chloride (PVC) by the principle of conservation and Styrolution’s production process.
Greenpeace in the 1990s means efficient use of raw materials. This McQuade says it is also working
INEOS is certainly no stranger principle goes to the heart of all that closely with US-based Agilyx on
to dealing with mounting we try to do in the business," adds a commercial scale PS recycling
environmental pressure, notes Rob Ingram, CEO of INEOS O&P. plant in Europe, as part of a joint
Chris Tane, CEO of INOVYN. Over the past year, INEOS has industry initiative – Styrenics
At the time, the industry formed several key partnerships Circular Solutions. This will
responded with the launch of with waste recovery and treatment process up to 50 tonnes/day of
the Vinyl 2010 initiative to help companies. Its efforts in mechanical post-consumer PS feedstock.
improve PVC’s environmental recycling are also paying dividends, “Most people used to look at
footprint. INOVYN is now a while the ultimate goal of chemical recycled materials as an inferior
leading proponent of its successor, recycling and depolymerisation is and cheaper alternative to virgin
VinylPlus. The industry in Europe also now within reach. material but now they’re seeing
has since recycled some 4m tonnes Ingram says the O&P business them as an integral part of the
of PVC, with 750,000 tonnes is planning to launch a range of solution,” he says. There’s really
expected this year alone. polyolefins by the end of the year no reason why we should landfill
“Back then, the idea of recycling that are 50% recycled content and plastics or throw them away so
plastics was a big novelty and was 50% virgin polymer. Advanced they end up in the ocean. Plastics
certainly ground breaking,” says testing with customers has so far Showing the are a valuable resource.”
Tane. “This was a new challenge that met with a positive response. value of plastic By Andy Brice
waste will stop it
we needed to respond to. Instead of Styrolution has achieved some heading into the
simply being defensive we came up significant milestones this year oceans or landfill
3
Information graphic: Gareth JJ Burgess
4
INVESTMENT & GROWTH
THE RIGHT
CHEMISTRY
INEOS goes from strength to strength
A
fter 20 years of investment and world scale facilities and rejuvenating
innovation, INEOS has not only existing assets.
become a major manufacturer of It has made bold moves beyond its
chemicals and oil products, but a company conventional markets in recent years,
committed to the circular economy, tackling breaking into the automotive sector, leading
plastic waste, applying best practice and major sports teams and encouraging young
ensuring the well-being and potential of talent to fulfil their potential.
future generations. INEOS’s conviction, commitment and
Through new technologies, strong team ethic has proven a
processes and partnerships, INEOS winning formula and remains
has grown exponentially, acquiring the cornerstone of its strategy
unloved businesses, building moving forward.
5
CHEMICALS
Back to
The future
INEOS is undertaking a massive expansion
programme in Europe, driven primarily by the need for The Antwerp site in Belgium has
a dependable and sustainable supply of feedstock been chosen for the new cracker
A
ntwerp is where it all began The price of acquisition, he says, has Ingram says INEOS can capture
for INEOS. Chairman Sir become quite expensive now, at 9 or efficiencies and significantly reduce
Jim Ratcliffe originally co- 10 times EBITDA compared to 4 or associated carbon dioxide (CO2)
founded INEOS when he bought 5 times EBITDA before. emissions for both ethylene and
INSPEC’s Belgian site in 1998. Fast Consequently, INEOS has propylene compared to existing
forward 20 years and INEOS has decided to use its access to benchmark levels.
returned to its roots with a €2.7bn competitive US shale-derived gas “This is about not just being
investment at Lillo within the Port to build capacity and transform economically sustainable but
of Antwerp – its largest ever – to “We want to a a stagnant European industry. also about taking a step towards
build a propane dehydrogenation see a renewal [of “We want to a see a renewal [of enhancing the sustainability profile
(PDH) unit plus an ethane gas assets] in Europe” assets] in Europe, which has lost of these essential building blocks
cracker, dubbed Project One. ground against the rest of the that are used throughout the
INEOS looked at several sites world in terms of petrochemical European petrochemical industry,”
across Europe – both new and John McNally, manufacturing,” McNally says. he says. He believes that Europe’s
existing – but Antwerp tipped the CEO of Project One Ingram believes the new reliance on old assets to meet
scales, says Rob Ingram, CEO of cracker will redefine its leading demand for the next 40-50 years
INEOS Olefins & Polymers. “We competitive position in Europe “by will be “a challenge”.
have a number of assets in the some margin”. As well as at Antwerp, INEOS
port area and the critical mass “Replicating US Gulf Coast is also investing in other sites to
to develop a major project. We economics in Europe gives us a boost its operational efficiency
also have direct pipeline access to very strong position to capitalise and flexibility. In Cologne,
a large number of ethylene and our feedstock cost advantage for Germany, projects are underway to
propylene consuming units.” the long term,” he says. modernise the cracker and add a
John McNally, CEO of Project Most of the output from the new power generation plant.
One, adds that the decision also cracker, which will have an ethylene The Cologne crackers are
reflects the company’s long- capacity of 1.5m tonnes/year, naphtha-based but can take small
standing relationships with both will be used captively in INEOS’s amounts of butane. INEOS is
the port as well as local, regional derivatives production, although modifying these crackers and adding
and national governments. The Ingram says it may make sense to infrastructure for handling butane
project is in the early phase and sell some of the ethylene in other so it can significantly increase the
INEOS is currently performing regions to keep its system balanced. volume of gas the cracker can take,
front end engineering design work INEOS is structurally and which Ingram notes will improve the
and applying for permits. “Replicating significantly short of both competitiveness of the plant along
Current plans are for the PDH US Gulf Coast ethylene and propylene to feed with providing some flexibility and
unit, which will use McDermott’s economics in its downstream production. security around feedstock supply.
Lummus Catofin technology and Europe gives us According to Ingram, INEOS The work is due to finish in 2020.
produce 750,000 tonnes/year of a very strong buys between 1.5m-2m tonnes/ A project to expand the cracker in
polymer-grade propylene, to go on position to year of ethylene and more than Grangemouth, Scotland (see box),
stream in 2023 and for the cracker capitalise our 1m tonnes/year of propylene. The by 100,000 tonnes/year is underway,
to follow in 2024, although McNally feedstock cost new capacity will plug the gap and but for the time being, Project One
says start-up dates are “fluid”. make INEOS more balanced on has replaced plans to further expand
“Project One is our first big foray
advantage for the propylene although the company output at Rafnes, Norway.
into major capital investment,” says long term” will remain a buyer of ethylene. Ingram says that the availability
McNally, explaining that INEOS has The sustainability profile of the of competitive ethylene and
had a change in mindset from its Rob Ingram, new assets is also a key factor for propylene from Project One
previous strategy of buying unloved CEO of INEOS INEOS. By integrating the two will definitely support potential
assets and turning them around. Olefins & Polymers units and using modern technology, projects for polyethylene (PE) and
6
FULL STEAM AHEAD AT GRANGEMOUTH
As part of a £1bn package of cracker’s efficiency and expand
investment in the UK, INEOS is capacity to meet growing demand.
spending £350m on a new steam Construction is underway and the
and power plant at Grangemouth, furnace is due to be commissioned
continuing its renaissance of the site towards the end of 2020.
and underpinning its growth plans for The extra ethylene will be
the future of manufacturing in the UK. used downstream in a variety of
“The new energy plant will deliver derivatives such as ethanol, ethyl
improvements in reliability and acetate, ethylene dichloride (a
environmental performance and precursor to polyvinyl chloride) and
increase efficiency,” says Tobias polyethylene, which are used in a
Hannemann, CEO INEOS Olefins variety of applications in the pharma,
& Polymers UK. “It will provide construction, automotive and food
security of energy supply to the packaging sectors.
polypropylene (PP); the company Grangemouth site for many decades, “It is a new and exciting time for
produces PE and PP at Lillo, replacing an existing power plant Grangemouth and the investments
Antwerp and PP at Geel in Belgium. that has been operating for more demonstrate a strong vote of
A seventh alkoxylate unit than 40 years and is nearing the end confidence in the site,” Hannemann
is almost certain to be built in of its economic life.” says. “INEOS is working on a
Antwerp too, says Graham Beesley, The main purpose of the new plant, number of other projects at the site.
CEO INEOS Oxide. “We are the says Hannemann, is to serve INEOS These are focused on improving
biggest producer of alkoxylates in O&P UK, the Forties Pipeline System our efficiencies and consumption
Europe and we continue to look (FPS) and Petroineos (the INEOS/ of energy, ultimately improving our
at areas where we can grow and Petrochina joint venture) businesses access to markets and serving our
debottleneck,” he says. with a reliable and continuous customers’ needs as well as making
INEOS Oxide has also this year supply of steam and power. It will our business stronger and more
completed a 30% debottlenecking furthermore allow third parties to robust for the future.” He anticipates
of ethylidene norbornene (ENB) settle at Grangemouth and invest that INEOS will make further
capacity at Antwerp and Beesley in new businesses that will benefit announcements on these projects in
says it is now planning a second from the secure supply of steam, the near future.
ENB plant somewhere either in the along with the site’s industrial One of the largest industrial sites
Middle East or Northeast Asia. infrastructure. in the UK, Grangemouth represents
Another major INEOS Oxide The facility, which is due on stream about 4% of Scottish GDP and houses
project is the proposed 300,000 in 2022, will benefit from improved the country’s one and only refinery
tonne/year vinyl acetate monomer boiler fuel efficiency and heat that provides fuel and energy across
(VAM) plant at Saltend in Hull, recovery within the power station. It Scotland. The complex, which has
UK. The £150m investment is will also significantly cut SOx, NOx been revitalised by the use of shale-
part of INEOS’s £1bn spending and CO2 emissions. gas shipped across the Atlantic from
programme in its UK assets. INEOS is also investing £60m the US, supports more than 3,000
“We think the economics of this in a tenth ethylene furnace at jobs on site as well as more than
plant are very favourable,” says Grangemouth to improve the 15,000 indirect jobs.
Beesley, noting that the plant can
take advantage of ethylene from
Grangemouth and import acetic groundwork has started and the primarily by Asia.
acid feedstock from anywhere in official groundbreaking ceremony is As well as providing a key
the world, which can be stored in scheduled to take place on 1 October. feedstock for INEOS, Casier notes
new tanks being built at Hull. “Phenol is a key market for us. the project is also important in that
Detailed engineering work is We produce phenol but are a very it reinforces the chemical cluster
underway on the unit, which will large consumer of cumene. This in Germany’s northern Ruhr area,
be based on fixed bed technology plant will give us more security comprising Gelsenkirchen, Marl
rather than the fluidised bed of supply and create savings,” says and Gladbeck.
process used by the previous plant. INEOS Phenol CEO Hans Casier. INEOS has taken some bold
Security of feedstock supply is He adds that INEOS Phenol’s decisions in its 20-year history,
once again a factor behind another customers are developing which have paved the path of its
INEOS project, this time for cumene, applications in several areas, such unrivalled growth to date. The
a raw material to produce phenol. as polycarbonate in lightweight current round of capital investment
INEOS Phenol has received components in cars, epoxy resins is another step towards laying the
the final go-ahead on the 750,000 for wind turbines, and in insulation, foundations for future growth and
tonne/year plant, which will be among others. According to potentially revitalising European
built in Marl, Germany, and go Casier, global demand for phenol petrochemical production.
into operation in 2021. Preparatory is growing at 3-4%/year, driven By Elaine Burridge
7
OIL & GAS
LIFE BEGINS
facilities that far exceed current
standards are also being introduced,
along with modern ground flares
that use the latest technology to
AT FORTIES
limit noise and luminosity.
The works are due for
completion by 2023.
Beyond the FPS, the oil and
gas business has also been a hive
of activity.
“We’ve evolved to become a fully-
A few years after fledged exploration and production
company. We remain focused on
strategic acquisitions M&A opportunities but also have
an interesting bucket of in-portfolio
established INEOS as opportunities and development
one of the leading oil projects,” says Tuft. “It’s a matter of
finding the right opportunities and
and gas companies the right deals at the right times.”
Clipper South, for example,
in the North Sea, it had been due to decommission in
2020, but a re-routing project has
is starting on yet extended its life, he says. Part of
more ambitious the works included installation of
water treatment facilities. As the
investment plans INEOS is looking long term
platform is unmanned, INEOS
adapted existing technologies to
create a water separation unit that
I
NEOS is certainly no stranger a network of 85 oil rigs to the could continue to run without an
to investing in its assets to give mainland. The 500km pipeline on-site operator. This innovative
them a new lease of life. The delivers 40% of the UK’s oil & gas, approach proved so successful
aptly-named 2040+ Strategy is with around 600,000 barrels flowing that the Oil and Gas Authority is
applying this philosophy to the through the system each day. looking at how this solution could
Forties Pipeline System (FPS) “The North Sea may be past be applied at other locations too.
on the east coast of Scotland, peak oil but there is still a lot out Exploration appraisal of previous
ensuring it operates for at least there and the FPS remains an discoveries and development
another two decades. important transportation system,” "We're putting our drilling is also ongoing, with work
The £500m modernisation adds Andrew Gardner, CEO of profits and energy on seven wells in Norway and the
project aims to enhance the INEOS FPS. “We happen to be the back into our asset West of Shetland taking place this
efficiency, profitability and custodians of it just now. We’re to extend its life" past year. INEOS is also looking
reliability of this vital piece of the putting our profits and energy back at the potential of the recent gas
UK’s infrastructure, says Geir Tuft, into our asset to extend its life.” discovery it made with Total at
CEO INEOS Oil & Gas. FPS was built in two phases, Andrew Gardner, the Glendronach prospect near
“With FPS, we have assessed the first in the 1970s with a major CEO of INEOS FPS Shetland, he says.
what needs to be done to extend its capacity increase in the 1990s. The Another three relatively low-risk
life beyond the late 2020s that the previous owner, BP, had pencilled in projects at the Hejre, Ormen Lange
former owner was talking about, a 2029 retirement date but INEOS and Breagh fields are also within
into the 2040s,” he says, “Our believed it could continue to play a 18 months of a final investment
announcement earlier this year major role far beyond that. decision. Combined, Tuft suggests
that we were committing to more Plans include essential these could provide an additional
investment will allow FPS to not maintenance at the Unity Riser 90m barrels of reserves – not
only last longer but also to have Platform where the various insignificant given INEOS’s total in
a cost base that is commensurate pipelines connect, as well as late 2018 amounted to 178m barrels.
with the production volumes. We’re upgrades to the valve technology, Shale gas in the UK remains
already seeing the positive effects of pipework, and cleaning and another untapped resource, yet
doing this, with customers saying inspection tools at the Cruden Bay opinion is still divided on its
they’re prepared to drill wells or terminal, north of Aberdeen. development and government policy
develop discoveries because of that The majority of the budget, is restricting progress, he says.
long-term commitment.” however, will be spent on the “We still believe this is a fantastic
Commissioned in 1975, the Kinneil facility, where one of the resource that the UK should
FPS has since transported over three existing compression trains utilise,” says Tuft. “We’re still
9bn barrels of oil and remains will be retired and the others optimistic but this is clearly a long-
the lifeblood of the North Sea, modernised, says Gardner. term game.”
a meandering artery linking New environmental treatment By Andy Brice
8
MIDDLE EAST
THE NEW FRONTIER
An agreement to build three government to develop and attract INEOS has just finished building at
plants in Saudi Arabia fills a hole further investment in the Kingdom’s Chocolate Bayou in the US. INEOS
in INEOS’s global manufacturing downstream industries. has already appointed a contractor
network, particularly for “This deal is transformational and and started early engineering work.
acrylonitrile and alpha olefins a significant development for the The location of these units
ACN business,” says INEOS Nitriles will allow INEOS Oligomers to
T
he Middle East has been a CEO Paul Overment, adding that the significantly enhance its market
noticeable gap in INEOS’s ACN plant will be the first of its kind presence in the Middle Eastern
geographical footprint but this in the Middle East and the biggest of region. “There is a ready-made
changed in June 2019 when the its type ever built. Overment notes market in KSA for LAOs as
company announced “a milestone that INEOS is the world’s leading polyethylene comonomers,” Walton
agreement” with Saudi Aramco and producer of ACN (and acetonitrile) says, adding that the Kingdom
Total to build three plants as part of and 90% of world ACN production imports a large amount of material
the Jubail 2 complex in the Kingdom uses INEOS technology. to meet domestic demand. The
of Saudi Arabia (KSA). According to Overment, the global PAO unit will represent the first of
The units will include a 425,000 ACN market stands at about 6.5m its kind in the Middle East and will
tonne/year acrylonitrile (ACN) unit, tonnes/year and is growing at more support the growth of synthetic
a linear alpha olefin (LAO) unit and than 3% annually – the equivalent of lubricant production in the region.
a polyalphaolefin (PAO) plant. All an additional 200,000 tonnes/year INEOS’s principal goal is to supply
three plants will be 100% owned and capacity – to meet demand for lighter, markets in both KSA and other Gulf
operated by INEOS and represent a stronger, energy efficient materials Cooperation Council (GCC) countries.
capital investment of around $2bn. such as acrylonitrile butadiene However, the units could also serve
Under the terms of the styrene, composites and carbon fibre. as an alternative source of supply
agreement, INEOS will take ethylene By the time INEOS starts up its to Asian export markets, which
and propylene output from the plant, he says the extra ACN capacity could prove advantageous given the
world-scale mixed-feed cracker that will only be enough to cover around a situation with international trade at
Aramco and Total are building at the third of market growth. the moment.
site. The cracker is part of a $5bn Meanwhile, INEOS continues to “The units will have access to
petrochemical complex – dubbed have ambitions to build in the Far globally competitive costs for
Project Amiral – with another $4bn East, where most of the demand feedstock and services. Upon the
of downstream derivatives and growth lies. Currently, Asia accounts completion of this project, INEOS
specialty chemicals units from third for between 20-30% of INEOS’s ACN Oligomers will then have capacity
parties, including the INEOS plants. sales. Overment says INEOS has based on the world’s leading
A feasibility study is currently looked at several different projects low-cost petrochemical regions,
underway and due for completion in the past five years but getting all including Canada and the US Gulf
in Q2 2020, following which front the factors in line to get a return Coast,” Walton says.
end engineering design work will on investment is not particularly He adds that while INEOS
start. INEOS anticipates taking a easy as ACN plants are costly and Oligomers’ customers were “caught
final investment decision by the end complex to build. by surprise” by the timing of another
of the third quarter 2021, with the “This project represents a announcement for a big project,
plants planned to start up in 2025. significant milestone in the division’s Walton says “it was important to
INEOS says the location gives the growth strategy,” says Joe Walton, maintain our momentum and make
group access to competitive raw CEO INEOS Oligomers. this great next step for the business”.
materials and energy, along with Plans at Jubail are for an LAO “This project will secure the position
readily available infrastructure. plant producing 400,000 tonnes/ of INEOS Oligomers as the leading
Output from the plants will mostly year along with an associated merchant supplier of LAOs and PAOs
serve markets in the Middle East, world-scale PAO unit, for which in the world. Our growth strategy will
although a portion could be supplied the capacity still has to be defined. ultimately double the size of the INEOS
to Asian countries. The company The plants, says Walton, will be of Oligomers division.”
says it will be working with the Saudi a similar design to the ones which by Elaine Burridge
The $2bn project is
its first in the region
9
US
SWEET
SUCCESS
FOR CHOCOLATE BAYOU
The site on the US Gulf Coast The US remains a
is home to multiple projects key area of focus
I
NEOS has big plans for trying to leverage its raw material production anticipated in the
Chocolate Bayou. The group has cost position, driven by shale fourth quarter of 2019.
announced major projects for gas, along with economy-of-scale Start-up of the PAO unit, which
the site in Texas, US, all driven by advantages to grow its businesses. will be the world’s largest single
a strategy of reinvesting to meet its Chocolate Bayou already train producing 120,000 tonnes/
customers’ growing requirements. hosts two olefins crackers, two year, will follow in the fourth
“Chocolate Bayou is already polypropylene (PP) units and two quarter of 2020.
a phenomenal site and its cogeneration plants. Joe Walton, CEO of INEOS
infrastructure capability and asset INEOS Oxide says the selection Oligomers, says INEOS has
base is growing substantially,” says of a new foothold in the US to host earmarked the business for growth.
Bob Learman, chairman of the an ethylene oxide (EO) and EO “The global market for alpha
three business units investing there. derivatives facility will reinforce olefins is growing at about 3-4%
“We have a large, well-located parcel on-site integration to the benefit per year. We saw the need for new
of land, modern infrastructure and of both the crackers and the capacity by the end of 2019, so the
flexible supply chain options. We downstream units. The availability market is ready for the plants we
can move products by pipeline, of additional land close to the have built,” he says.
barge, truck and rail. INEOS is proposed EO/EOD plant will also Driving that need is the wave
investing a lot of money in all three allow third-parties to co-locate and of polyethylene (PE) capacity
businesses [Oxide, Oligomers and consume EO by pipeline. that has started up in the past
Olefins & Polymers].” “There is a real appetite from two years – especially for high
Learman adds that INEOS is companies to come onto Chocolate density polyethylene (HDPE) and
Bayou and we are in active linear low density polyethylene
discussions with third parties,” says (LLDPE) – which has been spurred
GROWTH BY ACQUISITION INEOS Oxide CEO Graham Beesley. by multiple investments in new
“The idea is attractive to a number crackers, fed by low-cost shale gas.
INEOS has boosted its US footprint with three of people seeking dependability and One of the big end-uses for LAO
acquisitions. In May 2019, INEOS Enterprises efficiency of EO supply.” is in HDPE/LLDPE to improve the
paid $700m to buy two titanium dioxide He says INEOS is aiming to polymer’s performance. Walton
(TiO2) plants in Ashtabula, Ohio from Tronox, replicate operations in Zwijndrecht, also envisages a second wave of PE
marking its entry into the TiO2 market, where Belgium, where there are 12 third- investment in 2021-2022.
it is now the second-largest producer in the party companies on the site. The PAO output will also be
US. Ashley Reed, CEO of INEOS Enterprises, The EO plant will have a capacity needed to meet high demand for
comments: “The INEOS Pigments business, as of around 520,000 tonnes/year base oils/lubricants.
it will be known, presents new opportunities and be operational in 2023. The An ongoing programme of olefin/
for INEOS to enter the pigments market with company will also install derivative polyolefin debottlenecks is also
excellent people and assets.” ethoxylates capacity on the site. A underway at Chocolate Bayou. Mike
Late last year, INEOS Enterprises added the final investment decision is about Nagle, CEO of INEOS O&P, says
chemical intermediates business of Flint Hills 18 months out. a debottlenecking project to go on
Resources and also agreed to buy the entire In the meantime, INEOS stream in mid-2020 will add roughly
composites business from Ashland Global Oligomers is building plants at 272,000 tonnes/year of olefins.
Holdings for $1.1bn. The former Flint Hills Chocolate Bayou for linear alpha INEOS O&P has also completed
Business, which manufactures isophthalic olefins (LAO) and polyalphaolefins a 45,000 tonne/year expansion of
acid, trimellitic anhydride and maleic (PAO). The 420,000 tonne/ PP production at the site and has
anhydride at a plant near Chicago, Illinois, is year LAO plant is due to be plans for a further 32,000 tonnes/
now trading as INEOS Joliet. commissioned in August/ year PP for start-up in 2021.
September, with full commercial by Elaine Burridge
10VENTURES
Grenadier gears up
P
rojekt Grenadier has taken a choose from. The decision to Engineering and design are now
huge step forward with the build in the UK is a significant moving into series development,
announcement that it will expression of confidence in British with announcements on appointed
build its 4x4 off-road vehicle at manufacturing, which has always suppliers and partners to be made
Bridgend in South Wales, UK. been at the heart of what INEOS in the coming months.
The company has also chosen stands for.” The Grenadier will be a “robust,
“Grenadier” as the vehicle’s name, In parallel, INEOS Automotive no-nonsense” utility vehicle
reflecting the name of the pub will be investing in a sub-assembly incorporating BMW powertrains,
where INEOS Group Chairman plant in Estarreja, Portugal, to diesel and petrol, with the power
Sir Jim Ratcliffe first conceived the The new 4x4 produce the body and ladder and torque to cope with a 1 tonne
idea. More than 6,000 international vehicle will be chassis, working in conjunction with payload and 3.5 tonnes in tow.
followers responded to INEOS’s built at Bridgend INEOS’s European supply chain For INEOS Automotive, an
online poll to select a name, with in the UK partners that are located nearby. “uncompromising” off-roader
the biggest vote (twice that of the means a separate body on a ladder
second-best proposal) for Grenadier. chassis, solid beam axles, class-
Development work is underway leading approach and departure
on the greenfield manufacturing angles, and a mechanical transfer
site with production scheduled to case. Grenadier will also offer
start in 2021. The plant will create lockable differentials and an
200 jobs initially and up to 500 in interior that can be hosed down.
the long term. INEOS Automotive Development of this 4x4 is the
said the area’s skilled workforce first major project for the INEOS
was one of the positives that Automotive business. Ratcliffe
attracted it to the site. believes he can apply the group’s
Ratcliffe commented: “We manufacturing best practices from
have looked long and hard at chemicals, across other industries.
possible manufacturing locations INEOS is investing £600m to
for Grenadier across the world bring the Grenadier to market.
with lots of good options to by Elaine Burridge
THE CLOTHING CONNECTION
B
elstaff’s acquisition by INEOS pilots Amy Johnson and Amelia visible project to date will be the
in autumn 2017 may have Earhart and motor racing legend relocation of its London flagship
appeared an off-centre move Jackie Stewart, to name just a few. store from New Bond Street to
by the chemicals and polymers “Being part of INEOS presents Regent Street this October. The
group. But consider Chairman Sir a world of possibility and fresh opening of a new store in New York’s
Jim Ratcliffe’s penchant for buying thinking around a clothing brand. Meatpacking District in April 2020
entrepreneurial businesses with For us it is groundbreaking and very completes the revitalisation of its
good assets, add a dash of motor stimulating,” says Wright, adding that current retail portfolio, with a few
racing and sporting heritage, and Belstaff has big plans for the future. select new locations to open over the
the reasons become more obvious. “We plan to double our revenues next five years.
Designed with the “adventurous” in the next 3-4 years and keep Also top priority is Belstaff’s
customer in mind, Belstaff is a growing thereafter. First and investment in its online business,
brand that represents quality, foremost, it is about increasing the which Wright says represents 30%
innovation and style, says CEO awareness and relevance of our of total revenues in 2019, providing
Helen Wright, who adds that is an brand in people’s lives.” promising returns.
“enormous positive” that Belstaff is The company has been busy She says that the INEOS
back in British ownership. defining a new retail concept and sponsorship of the British challenger
Perhaps best known for its relocating current stores to locations to the 36th America’s Cup was a
waxed cotton motorcycle and that Wright believes are better great opportunity for Belstaff in
aviator jackets, the clothing suited to the Belstaff brand and its terms of visibility and global reach.
company is nearly 100 years old, customers. Having opened new stores Belstaff has created the on-shore
tracing its roots back to 1924 and in Munich on the Residenzstrasse in collection for the senior teams for
boasting links with many famous May 2019 and in Glasgow on Ingram the series, which will launch as a
adventurers and sporting icons – Street in July 2019, Belstaff’s most consumer collection next April.
11SPORT
IN A LEAGUE OF THEIR OWN
I
NEOS has just added to its ever-expanding
sports portfolio by netting French football
club OGC Nice.
The takeover, completed in August, ends
Image: Tom Lovelock
months of media speculation but marks the
start of an exciting new journey, says INEOS
Community Football CEO, Bob Ratcliffe.
INEOS already owns second division Swiss A once-in-a-generation opportunity to make history
side Lausanne-Sport and had been linked
with a number of top European clubs before
striking the deal.
HITTING THE GROUND
RUNNING
It certainly had a clear goal in mind with its
new acquisition. Despite finishing seventh last
year, Ratcliffe believes that given time, the
Ligue One club can climb the table and qualify
for a highly-coveted Champions League place,
putting it among Europe’s elite.
It should prove a great investment too,
costing a twentieth of the price of a top six
H
club in the UK, he notes. aving crossed the finish line for example, has been sharing
“Nice is a football club with a great history, at the London Marathon in its engineering knowledge and
great supporters and lots of potential,” says April, Eliud Kipchoge barely expertise on everything from the
Ratcliffe. “INEOS has been a phenomenally had time to collect his winner’s pace cars to the clocks for timing
successful company and achievement has medal, or his breath, before he was the race, while meteorologists from
become part of our DNA. We want sports planning his next world-class race. Sir Ben Ainslie’s sailing team have
franchises that are exceptional or on a path to On 12 October 2019, the 34-year- offered their insight into weather
becoming exceptional.” old would be making history by conditions to help find the most
“If you’re going to own a football club and it’s running a sub two-hour marathon suitable venue.
going to be successful both on and off the pitch, in the INEOS 1:59 Challenge. The course had to meet a very
it has to be run as an effective business.” Kipchoge already holds the specific set of criteria to give
“We know from our experience with Lausanne world record of 2:01:39 hrs, and Kipchoge the best chance of
that patience is important in football – you unofficially ran the 26.2 miles success – all while meeting the
can’t achieve success overnight but we believe (42km) in 2:00:25 in 2017 – but high standards of the IAAF, the
this could be a top six club and challenge for even for the greatest-living long governing body for athletics. It
European places in the next 3-5 years.” distance runner, shaving 26 had to be at the right altitude, in
Not only does football’s team ethic resonate seconds off your best time is no a climate with favourable weather
with INEOS, he says, but this acquisition will mean feat. conditions – and importantly,
be about optimising performance, working INEOS Chairman, Sir Jim somewhere that a crowd could
together and achieving success – echoing the Ratcliffe, had no doubt it could be cheer him on. He wanted a flat
ethos of the chemical major itself. done. Kipchoge’s vision typified course with limited camber that
“We want to be a commercially successful the pioneering spirit that he had fell within a three-hour time zone
club and a sustainable business. We don’t just instilled among his own team over of his training camp in Kenya.
want to spend the most money to get success, the years. It seemed appropriate After an extensive selection
we want to earn it. We want to have preeminent therefore, that INEOS should lend process, the team identified five
scouting, develop youth and have a first-class its full support to the challenge. potential courses and eventually
academy. The INEOS philosophy will run “It’s such a multi-faceted project decided on the Austrian capital of
through the club – we’re looking to improve and we’re pulling in people from Vienna, 4.4 laps of a 9.6km loop in
performance and the way the club is run.” all across the INEOS Sports family. The Prater, the city’s famous park.
It boasts the stunning 36,000-capacity While it might look simple on “This has really required a
Allianz Riviera stadium, which was built for paper, it’s an incredibly complex ground-up approach, breaking
the 2016 Euros, and also has new modern and challenging endeavour – and down the performance, analysing
training facilities just 3km away. ultimately that’s what we all live the demands of the event, and
INEOS is a keen supporter of children’s for,” adds project lead Fran Millar. looking at all of the components
health and wellbeing, and this also provides “We’ve got this once-in-a- to try and establish where we can
another opportunity to give back to the local generation athlete who is the only lose those 26 seconds,” says Millar.
community and encourage young people to person capable of doing this but “We have felt an enormous sense of
take up sport too. it needs to be done in absolutely responsibility to ensure he has the
“We want to see what can we do to at the right conditions, with the right support he needs.”
grassroots level to improve skills and leave an support, the right people and the Find out more details at:
imprint with community football,” he says. right sports science around him.” www.ineos159challenge.com.
The Projekt Grenadier team, By Andy Brice
12W INEOS starts
ithin a few days of
launching in May,
Team INEOS got off
to a winning start with a Tour
a chain reaction
de Yorkshire victory. By the end
of July, the black and burgundy
shirts had also secured the
coveted Tour de France trophy –
cycling’s biggest prize.
“This has been a really exciting the biggest businesses in the world don’t consider the success we’ve
time for us as an organisation. and one which has been a pioneer had so far to be anything other
There’s a freedom and excitement in its industry,” she says. “We’re than our past and INEOS is our
Team INEOS
that comes from working with keen to see what we can learn, future. We’re all very excited by took the title in
INEOS,” says CEO Fran Millar. from how we operate to health and this opportunity to be even better this year’s Tour
“There really are no limits and Sir safety, and how we structure our than before.” de France
Jim Ratcliffe is hugely motivated contracts. So far, it’s been a really
to help support us in being better exciting voyage of discovery.”
than before. It all feels very new, From changing procedures
exciting and fresh. You wouldn’t and the running of the team, to
expect a petrochemical company to considering improvements to
have synergies with a professional everything from the bike frames
cycling team but in fact, we’re and wheels, to the helmets
really closely aligned both and skinsuits, there are plenty
culturally and attitudinally in how of potential crossovers and
we approach things.” alignments with the various parts
Millar has been with the team of the business, she insists.
since its inception in 2009 but “We’re one of the highest
says the takeover has already seen performing sports teams in the
them step up a gear. Along with world from a sustained success
team principal Sir Dave Brailsford, perspective but for us, it’s all about
Image: Russ Ellis
she is keen to leverage the skills, getting better. We race 276 days a
expertise and contacts of INEOS to year and have a squad of 30 riders
ensure future success. constantly in motion. We’re not a
“We’re now owned by one of team to sit still; it’s in our DNA. We
SMOOTH SAILING FOR CUP CHALLENGE
I
NEOS TEAM UK is making great tried or tested before so we felt it “There are many parts of the
progress in its bid to be the first- was significant to get out early and business that are lending their
ever British winner. The first of understand this new concept of support,” he says. “We’ve had a
the two boats being built for the 36th boat,” he says. “Our focus has been series of meetings with engineers
America’s Cup has undergone its on maximising our time on the water from the Projekt Grenadier team
final structural tests and been fitted and giving design and performance about machining capabilities, and
out, ready to launch in September. data back to the team. We’ve been constant dialogue about where we
The 75-foot mono-hull vessel looking at how the boat handles and can help each other with the supply
uses huge foils to offer support collecting critical information which chain. The cycling team has offered
and manoeuvrability while moving we can use in our simulations.” help too, from physical training and
at high speed through the water – The team now faces an equally optimising performance to advice on
marking a first for the competition. hectic schedule in the run up to well-being and nutrition.”
Since the successful launch of a the main event, including a four- The team kit on-shore is being
smaller two-man, 28-foot prototype day regatta in Sardinia next April, supplied by INEOS-owned Belstaff
last year, practice sessions in the the first time the AC75 class has and there has also been assistance
Solent, UK and at the winter training been in competition. The PRADA on the chemical side, with INEOS
camp in Mar Menor near Alicante, Cup Challenger Selection Series in Nitriles introducing the team to
Spain, have been vital for collecting January 2021 will then determine Japan’s Toray to source carbon fibre
data to help determine the designs for which of the entrants competes used for the boat, for example.
the final boat, says team principal and against the current holder. “The INEOS partnership with all
skipper, Sir Ben Ainslie. Since INEOS announced its support that support and expertise has been
“We were the first team to get a and came onboard in early 2018, fantastic for us,” adds Ainslie. “The
test boat out on the water and that the team has been able to call on its America’s Cup is incredibly hard to
was a huge milestone. A foiling resources and expertise, says Grant win but we’re confident we have the
mono-hull like this has never been Simmer, INEOS Team UK’s CEO. team do it.”
13HEALTH & WELLBEING
TKTKTKTKTKT
Fitness plans gather pace
C
hildren’s fitness campaigns a growing global community of children from 44 schools competed.
The Daily Mile (www. independent researchers who are INEOS sites all around the world
thedailymile.co.uk) and GO looking at The Daily Mile and work with their local communities
Run For Fun (www.gorunforfun. studying its impact on children’s to set up these events. For example,
com), have grown enormously health, wellbeing and learning. 60 workers from INEOS’s site in
since INEOS became involved. In 2018, the Foundation set up a Sarralbe, northeastern France,
Collectively, the two initiatives research steering group to provide volunteered to host its fifth run
have inspired more than two a forum for gathering and sharing this year, which attracted 4,000
million children around the world data globally. children from local schools.
to get active. In June 2019, it announced a Despite its name, GO Run For
Working with Elaine Wyllie, research partnership with Imperial Fun is not all about running. The
founder of The Daily Mile, INEOS College London to explore the initiative also has a buddying
set up The Daily Mile Foundation benefits of The Daily Mile. programme, with an international
in 2016. Fast forward to 2019, the INEOS is funding the three- network of schools sharing their
programme, which Wyllie started year project, which started in experiences and children able
at her Scottish primary school late 2018 and will be the first to get involved in activities such
in February 2012 and involves large-scale assessment of The as letter writing, art and design,
getting children to run or jog for Daily Mile’s potential impact maths and short film production.
just 15 minutes every day, has now on the health and educational INEOS Chairman Sir Jim
spread worldwide. achievement of primary school Ratcliffe himself is also involved
Kerry Davis, partnership pupils across England. in some film making, namely the
manager at The Daily Mile As The Daily Mile’s plans
Foundation, says the charity’s gather pace, the GO Run For Fun
main remit is to get as many campaign has also been racing
schools around the world signed ahead with its ambitions. The GO
up and taking part. One of its Run For Fun Foundation says it is
core aims is to partner with like- now the world’s largest children’s
minded organisations in the UK, running initiative, with more than
Europe and beyond to help get 400 events organised and 300,000
the initiative embedded in more children taking part since it was set
settings globally. up in 2013.
So far, the Foundation has GO Run For Fun, which is
official partnerships in France, organised and delivered by over
Germany, Belgium, Spain, 24 INEOS site teams, holds events
Portugal, Ireland, Scotland, Wales, all around the world. Amy Tayler,
England (including with Sport GO Run For Fun’s project manager,
England and London Marathon says the campaign has just
Events), the Netherlands, Austria delivered in August its inaugural
and the United Arab Emirates. event in India and is also hoping
A current key focus is to to host others next year in Spain, The initiatives animated films featuring GO Run
expand across the US where the Sweden and Brazil. encourage For Fun’s mascot Dart. Ratcliffe
Foundation has hired a project The initiative has set several children to stay writes the scripts, which are
fit and healthy
lead based in the INEOS Houston targets for 2019. It wants to get mostly focused on topics such
office. Initial work is centred on more than 64,000 kids active each as teamwork, healthy eating and
encouraging schools in Houston year and reach the 350,000th improving fitness, and the GO
and Chicago to sign up with participant; hold 30 events in Run For Fun team works with an
further expansion through 2020 Europe and another 30 across educational consultant who pulls
and beyond. So far, over 100 North and South America and the content together.
schools in the US have registered Asia; deliver events in 11 different Millions of children across the
for the initiative. countries; engage with more than globe have already been reached
Davis says the ambition is to 1,000 schools and get 20 schools to through the success of these two
continue expanding The Daily host their own events through its initiatives. Their ambitions are
Mile into other countries, taking a ‘Event in a Box’ package. limitless and that can only help
targeted approach to “ensure that Another aim for 2019 was to children and generations to come
partnerships happen at the right hold a flagship event in London, to lead healthier and fitter lives.
time, with the right people”. including The Daily Mile in a For more information, contact
While it seems obvious that celebration of running. This event, info@gorunforfun.com or
getting children fitter and healthier GO Run London, took place in team@thedailymile.co.uk.
is beneficial, Davis says there is June at Battersea Park, where 2,448 by Elaine Burridge
14EDUCATION
Each week, around eight school
Image: Phill Williams
groups attend workshops hosted at
STEM Crew’s base in Portsmouth,
UK, which it shares with INEOS
TEAM UK.
There they learn about the
science behind sailing as well as
conservation and sustainability.
They also have access to interactive
hands-on exhibits, which highlights
the many innovative technologies
and materials used onboard
INEOS TEAM UK’s America’s
Cup boat. From the techniques
used in its construction to learning
about hydraulics and hydrofoils,
students come away with a better
INSPIRING A
understanding of how science and
sport are connected.
Rebels Crew, is an altogether
different initiative targeted
specifically at 11-14 year old students
from disadvantaged backgrounds.
NEW WAVE OF TALENT
It aims to remove barriers and help
to dispel the myth that sailing is
exclusive or unaffordable.
Through their schools,
participants join a 6-8 week sailing
programme that not only gives
E
ncouraging health and The 1851 Trust The former is a free programme them a taste of the sport but helps
wellbeing among young uses sailing that provides a range of teaching them develop vital life skills.
to inspire and
people has been a key focus educate young resources targeted at 11-16 year “Rebels Crew is making a
for INEOS these past few years, so people olds. Established in 2014, it uses its real difference,” says Cartledge.
the opportunity to combine this link with the America’s Cup and “We find that the behaviour and
with an educational programme of sailing to inspire young people and motivation at school improves not
science, technology, engineering open their eyes to their potential. only for those who are directly
and mathematics (STEM) all so Part of this is to emphasise that taking part but the rest of the
central to its core business seemed the success of the team extends far school feels the benefits as well.”
the perfect fit. beyond the 11-strong crew and By October, more than 7,500
The 1851 Trust is an education involves over 120 people each with children will have taken part. With
charity that uses the context of unique abilities and disciplines. INEOS’s support, the Trust aims to
the America’s Cup, dubbed the “The America’s Cup is a real double this to 15,000 next year and
Formula 1 of sailing, to bring combination of technology exceed 20,000 in 2021.
STEM subjects to life. and teamwork,” adds CEO Ben The scheme had previously been
INEOS got involved in late 2018 Cartledge. “It’s a coming together focused on a fairly small perimeter
when it formed INEOS TEAM UK of different people from a lot of around its Portsmouth base, says
and launched its bid to win the different backgrounds and skillsets, Cartledge but the additional funding
36th America’s Cup with Sir Ben with the single aim of making the has made it possible to expand its
Ainslie at the helm. boat go as fast as possible.” reach and work with sailing centres
“The Trust has been doing a “We want to give STEM Crew reflects this and and clubs across the country,
fantastic job focusing on getting them opportunity leaves children feeling confident including London, Liverpool,
young people out on the water and ambition. It’s and enthusiastic in their abilities, Manchester and Edinburgh.
and engaged in science,” says knowing that they could pursue “Our national expansion would
all about making
Ainslie, patron of the Trust. “We’re a career as an athlete, designer, not have been possible without
absolutely delighted INEOS has the experience as scientist or an engineer, he says. their support. INEOS has allowed
given us its backing and we’re real as possible “We want to give them us to scale that up considerably,”
already seeing the benefits, with and relevant to opportunity and ambition. It’s all he says, “We now have 12 flagship
more children getting active and about making the experience as centres around the UK and are
their day-to-day
inspired by sailing.” real as possible and relevant to working with local schools to get
INEOS’s support for the 1851 lives” their day-to-day lives.” their students inspired by sailing."
Trust funds two programmes with “Teachers use our resources “The programme is building
INEOS TEAM UK’s challenge for Ben Cartledge, for two reasons: the content really momentum and has been a huge
the America’s Cup at their core: CEO of the delivers and it excites and inspires success," insists Cartledge.
STEM Crew and Rebels Crew. 1851 Trust their students,” says Cartledge. By Andy Brice
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