Industry investments, transactions and M&As

2018 proved to be eventful for the petrochemical industry, benefiting particularly from the construction of new facilities all around the world. presents an overview of projects and transactions which may transform the industry landscape going forward.  

Saudi Aramco and Total began engineering studies on $5bn complex

Saudi Aramco and French energy firm Total signed an agreement to commence engineering studies for the construction of a $5bn petrochemical complex in Jubail, Saudi Arabia. In April 2018, the two companies signed a memorandum of understanding (MoU) to build the complex, which will be located next to the Satorp refinery.

The Saudi Arabian company now owns a 62.5% in the facility while Total will hold the remaining 37.5%.

Saudi Aramco and Total sign an agreement to launch engineering studies.

Bayer sealed Monsanto acquisition for $63bn

German chemicals and pharmaceuticals producer Bayer completed its $63bn acquisition of US-based seed and agricultural chemicals firm Monsanto. Following completion of the deal, shares of Mosanto ceased to trade on the New York Stock Exchange.

Bayer paid $128 per share to Monsanto shareholders.

CPC to invest $6.6bn in Paradip petrochemical project, India

Taiwan-based CPC Corp planned to invest $6.6bn in a petrochemical project in Paradip, Odisha, India.

A Taiwanese delegation led by CPC president Shun-Chin Lee met the Indian Minister for Petroleum & Natural Gas Dharmendra Pradhan to discuss the proposal.

With an annual production capacity of 15 million tonnes, the Indian Oil Corporation’s (IOC) Paradip Refinery was selected to host the new project, which utilises the refinery’s feedstock. It has downstream units for the production of a wide range of end products and petrochemical intermediates, reported The Hindu Business Line.

CPC Corporationselects Indian Oil Corporation’s (IOC) Paradip Refinery for its petchem project.

Formosa to build $9.4bn chemical manufacturing complex in US

Taiwanese company Formosa Petrochemical announced plans to build a $9.4bn chemical manufacturing complex at St James Parish in Louisiana, US.

Formosa bought a 2,400-acre site along the west bank of the Mississippi River to build the complex.

Operated by Formosa’s subsidiary FG LA, the complex will be built in two phases over the next ten years to produce ethylene, propylene, ethylene glycol and associated polymers.

AkzoNobel Specialty Chemicals completed takeover of Brazil’s Polinox

AkzoNobel Specialty Chemicals completed an acquisition of Brazil-based ketone peroxide producer Polinox.

The deal was first announced in the last week of July 2018. The acquisition was expected to enable AkzoNobel to expand its footprint in South America to become one of the leading producers of curing systems for polyester thermoset resins in the region.

The transaction included the acquisition of Polinox brands and trademarks such as Brasnox, Perbenzox and TecnoxSuper, as well as its customer list and production expertise.

AkzoNobel’s takeover of Polinox to expand its footprint in South America.

Sabic and ExxonMobil JV advanced US petrochemical project

Saudi Arabian Government-owned diversified chemicals firm Sabic formed a new joint venture (JV) with ExxonMobil to advance the $7.3bn development of a 1.8 million tonne ethane cracker in San Patricio County, Texas, US.

Known as the Gulf Coast Growth Ventures project, the facility will also include a monoethylene glycol unit and two polyethylene units.

The collaboration is the third JV between Sabic and ExxonMobil in Saudi Arabia, with the other two located in Kemya, Jubail, and Yanpet, Yanbu.

Solvay expanded Texas facility to increase resin mixing capacity

Advanced materials and speciality chemicals company Solvay started constructing a new manufacturing plant to increase resin mixing capacity.

Located in Hunt County, Texas, the new facility was expected to help meet the increasing needs of commercial and military aerospace composite customers.

Solvay’s composite materials executive vice-president for global operations Tracy Price said: “Greenville TX is a strategic site for Solvay, where in recent years we have invested several millions of dollars in capacity and modernisation resulting in a double-digit employment growth.”

INEOS built €2.7bn ethane cracker and PDH units in Europe

INEOS announced its plans to invest €2.7bn to construct ethane cracker and propane dehydrogenation (PDH) units in Northern Europe.

The two units are intended to benefit from the economics of US shale gas. This will be the first new cracker to be built in Europe for two decades.

Once operational, the plant will be environmentally friendly, claimed INEOS.


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