Ineos Styrolution’s first entry to China; buys Total’s PS sites

Styrenics maker Ineos Styrolution has signed an acquisition agreement with French firm 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 and two related offices in Guangzhou and Shanghai.

The Ningbo plant produces 200,000 tonnes/year of PS and has 54 employees. It also includes a unit that manufactures PP compounds for automotive parts. After the closing of the transaction, the PP compounds production will be exclusively dedicated to Total.

The Foshan plant produces 200,000 tonnes/year of PS and has 86 employees

Total says that in a highly competitive PS market, it did not have the required critical mass in China, unlike its positions in Europe and the US, where it says it has a number 2 position.

The transaction signals Ineos Styrolution’s first production move into China and underlines the company’s commitment to the Asian growth market, as 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,” says Kevin McQuade, CEO Ineos Styrolution.

Ineos acquired the global K-Resin styrene-butadiene copolymers (SBC) business from Chevron Phillips Chemical Company and Daelim Industrial Co. in 2016.

(PRA)

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