INEOS to invest $2bn in Saudi Arabia
INEOS announced it has signed a Memorandum of Understanding with Saudi Aramco and Total, France, to build three new plants as part of the Jubail 2 complex in the Kingdom of Saudi Arabia. A new state-of-the-art 425,000 tonne acrylonitrile plant will use INEOS' world leading technology and catalyst. It will be the first plant of its kind in the Middle East when it starts up 2025.
INEOS will also build a 400,000 tonne LinearAlphaOlefin (LAO) plant and associated world-scale PolyAlphaOlefin (PAO). These units will be the most energy efficient in the world when they begin production in 2025.
The location in Saudi Arabia will give INEOS access to competitive raw materials and energy, with well invested infrastructure, to better serve customers directly in the Middle East and markets across Asia.
Jim Ratcliffe, Chairman of INEOS, said: “This is a major milestone for INEOS that marks our first investment in the Middle East. The timing is right for us to enter this significant agreement in Saudi Arabia with Saudi Aramco and Total. We are bringing advanced downstream technology which will add value and create further jobs in the Kingdom.”
The project represents a continuation of INEOS' growth strategy following the announcement of €3bn investment into a new plant at Antwerp, £1bn investment across the UK, acquisitions in China and capacity increases in the US Gulf Coast, Alabama and Chocolate Bayou facilities.
Paul Overment, CEO of INEOS Nitriles, said: “Global demand for acrylonitrile continues to grow ahead of GDP, to meet the demand for lighter, stronger, energy efficient materials such as ABS, composites and carbon fibre. This first investment in the Middle East consolidates our position as the market leader and shows a clear and ongoing commitment to meet our customers' needs wherever they are in the world.”
Joe Walton, CEO of INEOS Oligomers said: “INEOS Oligomers is one of the world's leading merchant suppliers of LAO and PAO. The size and location of these new plants reinforces our commitment to keep pace with our LAO and PAO customers' expanding requirements globally.”