M&As: Ineos completes purchase of LyondellBasell’s US ethylene business; Chemovator invests in start-up Heartland involved in natural fibre reinforcements

Ethylene/propylene producer Ineos Oxide and LyondellBasell (LYB) have completed the sale of LYB’s Ethylene Oxide & Derivatives (EO&D) business and associated production facilities located in Bayport, Texas to Ineos. The business purchased for US$700 million has around 1 million tonnes/year of EO/derivatives nameplate capacity.

Tobias Hannemann, CEO of Ineos Oxide said, “We are pleased to complete this strategic acquisition in the US. Ineos Oxide is a leading producer in Europe and this significant step expands our Ethylene Oxide & Derivatives business into the US, which is the world’s largest market. It also complements our existing Ethanolamines production facility in Plaquemine, Louisiana.”

He added, “There is available land on the Bayport site for Ineos’ growth aspiration. It is an ideal location to develop our third-party business supporting customers to co-locate and integrate into an existing Ethylene Oxide & Derivatives platform.”

The Bayport EO&D business produces high-purity ethylene oxide and associated derivatives. Access to cost-advantaged feedstocks and logistics networks contributes to its excellent performance and market reputation.

Peter Vanacker, CEO of LyondellBasell said, “This divestiture of the EO&D business demonstrates progress against our company strategy and allows us to focus on further strengthening our core businesses.”

The closing of the transaction follows the completion of planned maintenance at the Bayport facility and satisfaction of regulatory and other customary closing conditions.

In other news, Chemovator, the business incubator and early-stage investor of German chemicals firm BASF, has successfully finalised an investment in Heartland. The Detroit-based start-up is a frontrunner in the production of natural fibre plastic additives, and the latest addition to Chemovator's external-facing Elevate program.

Supported by a team of scientists, engineers, and technologists, Heartland has developed hemp-based materials that can be used as additives within plastic compounds. This breakthrough advancement in the world of sustainable material innovation improves properties with regard to flammability, bonding, dispersion, and bulk density, which are historically associated with processing natural fibres. As a result, natural fibres are now a viable market opportunity to reduce scope 3 carbon emissions in numerous industries.

With this funding, Heartland becomes Chemovator’s first portfolio company in North America and the latest addition to the Chemovator Elevate program. The program aims to support early-stage startups in the chemical industry through monetary investment, access to BASF and its experts, as well as support from a network of experienced entrepreneurs.

The Investment builds on an existing partnership between Heartland and BASF’s North America Open Research Alliance (NORA).

The monetary and strategic support provided by Chemovator enables Heartland to deepen valuable collaborations within BASF.

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