Ineos Olefins & Polymers USA and Sasol Chemicals North America have reached a 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 kilotonnes/year 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.

“This investment will allow Ineos to meet our customer’s needs for additional bimodal products,” said Dennis Seith, CEO of INEOS Olefins & Polymers USA. “It also supports Ineos’s strategy to invest and to capture synergies on our major sites.”

Ineos will operate the HDPE plant at its Battleground Manufacturing Complex in LaPorte. Plant start-up is expected in 2016.

“This project will expand Sasol’s presence in the global chemical market and complement our North American growth strategy,” said Fleetwood Grobler, Sasol group executive for global chemicals. “Its location offers several benefits, including access to US Gulf Coast infrastructure and proximity to our proposed ethane cracker and derivatives complex in Southwest Louisiana.”

The definitive agreements are in the process of being finalised, and all relevant permits have been obtained. Because the plant will be debt financed, the investment decision is conditional on achieving financial close.

When Switzerland-headquartered Ineos and South Africa-based Sasol initially announced their intention to form this joint venture in July 2013, the partners had said the plant would be located in Louisiana.