Ineos Styrolution has inked an acquisition agreement with Total for two polystyrene (PS) production sites in China.
The deal includes the purchase of the wholly-owned Chinese PS business including two production sites in Ningbo and Foshan, as well as two related offices in Guangzhou and Shanghai.
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The transaction signals Ineos Styrolution’s first production move into China and underlines the company’s commitment to the Asian growth market, derived from the company’s Triple Shift growth strategy.
“A little more than one year after our first acquisition, Ineos Styrolution continues to grow its footprint in the Asian market,” said Ineos Styrolution CEO, Kevin McQuade.
“Not only does this move allow us to significantly increase our presence in a region with growing demand for polystyrene, it also enables us to provide customers in our core industries with locally produced materials.”
The Foshan site is located in the Guangdong Province in South China. The Ningbo plant is in the Zhejiang Province south of Shanghai in Eastern China. The annual nameplate capacity of each site is 200kt per year.
For his part, Global Styrene Monomer president Asia Pacific, Steve Harrington added: “This is an important milestone for both Ineos Styrolution and the Ineos Group as it represents our first manufacturing assets in China.
“In addition, it provides us with a platform to further develop our manufacturing base in China.”
The transaction is subject to approval by regulatory authorities.
