INEOS Styrolution has signed an acquisition agreement with Total S.A. for two polystyrene (PS) production sites in China.
The deal adds 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 deal will grow INEOS Styrolution’s polystyrene production capacity by 400kt per year.
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,” said Kevin McQuade, CEO INEOS Styrolution.
“Not only does this move allow us to significantly increase our presence in a region with growing demand for polystyrene, it also enables us to provide customers in our core industries with locally produced best-in-class materials.”
“This is an important milestone for both INEOS Styrolution and the INEOS Group as it represents our first manufacturing assets in China,” added Steve Harrington, President Asia Pacific and Global Styrene Monomer.”
The transaction is subject to approval by the regulatory authorities.