Ineos Barex’s acquisition of Japanese firm Mitsui Chemicals’s Polyacrylonitriles (PAN) business, including PAN resin and Zexlon film, will give it a foothold in Asia. This agreement also allows Mitsui Chemicals to secure a long term supply of PAN for its current customers as it transfers ownership of the business to Ineos Barex.

The agreement brings together complementary capabilities and synergies of both businesses. The value of the transaction was not disclosed. PAN resins are inert products manufactured by Mitsui Chemicals under license, at its Nagoya works. Film and sheet applications include pharmaceutical and medical packaging in the Asia Pacific region. Ineos supplies PAN co-polymers, sold under the Barex brand name, primarily in the European and North American Market. The company says its Barex products are substitutes for Mitsui PAN resin Zexlon film products. Barex is a specialised acrylonitrile-methyl acrylate co-polymer that has both US Pharmacopeia and FDA clearances for medical and pharmaceutical packaging. The chemistry behind Barex makes it readily convertible into film, sheet and bottles on standard equipment using extrusion, injection and calendaring techniques. Barex resins provide chemical resistance essential for packaging aggressive active ingredients that need to stay inside the packaging while also providing excellent oxygen barrier properties.

On completion of the deal, Ineos will immediately take over responsibility for sales and marketing of all Mitsui PAN resin and Zexlon film customers and will work closely with them to obtain necessary approvals and make the transition to Ineos Barex products. Mitsui production will be continued for sufficient time for approvals to transition to Ineos Barex products. The deal comprising the sales, marketing, and supply of PAN resin and Zexlon film is expected to be completed 1 August 2013.