INEOS Phenol adds 1 million tonnes of production capacity as it acquires Mitsui Phenols Singapore Ltd for $330 million
August 29, 2022 at 07:35 am EDT
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INEOS Phenol has announced that it has agreed to acquire the entire asset base of Mitsui Phenols Singapore Ltd from Mitsui Chemicals, a leading Japanese chemicals manufacturer, for a total consideration of $330 million. The business has a turnover of $750 million and produces over 1 million tonnes of product each year, including cumene (410 ktpa), phenol (310 ktpa), acetone (185 ktpa) alpha-methylstyrene (20 ktpa) and bisphenol A (150 ktpa).
The addition of the Jurong phenol and BPA assets provide a good fit with our existing asset portfolio and expertise of INEOS Phenol and presents significant integration opportunities with our manufacturing sites in Germany, Belgium and the United States.
Cumene is an essential raw material for the production of phenol, acetone, alpha-methyl styrene and BPA which are used in the production of polycarbonate, plastics, phenolic resins, synthetic fibres and solvents. These products are used in a diverse range of end markets, including the automotive, construction, electronics, healthcare, surgical and fibre industries.
'We are very pleased to acquire the Singapore Phenols business on Jurong Island, from Mitsui Chemicals. INEOS Phenol is today the leading phenol producer in the world, adding production and supply capabilities in a prime location in Asia has been a long-term business objective and will help us to further serve our global customer base. This acquisition presents an excellent opportunity to further improve the competitiveness of our business,' said Hans Casier, CEO INEOS Phenol. 'These are good quality, well placed assets, complemented by a very experienced operations team and high safety, health and environmental standards.'
'Entering the Asian market via this acquisition gives INEOS Phenol a unique capability to support our global customers' plans for future growth whilst at the same time we look forward to developing new markets and customer relationships associated with bisphenol A which will be a new product for INEOS' said Gordon Adams, Business Director INEOS Phenol
INEOS Phenol is the largest producer of phenol and acetone with operating assets in Germany, Belgium and USA all supported by a dedicated research and technology centre based in Germany. The business produces just under 1.9 million tonnes of phenol and around 1.2 million tonnes of acetone annually. Demand for phenol and acetone continues to grow worldwide. Through selective investments in new assets and new technology, the business intends to further develop its business and grow with its customers.
The transaction is subject to customary regulatory approval and is currently anticipated to complete in Q1 2023.
Mitsui Chemicals, Inc. specializes in the manufacture and marketing of chemicals products. Net sales break down by product family as follows:
- basic chemicals and fine chemicals products (48.8%): polypropylene, polyethylene, phenols, polyolefins, polyurethane, etc.;
- performance chemicals products (25.5%): elastomers, urethane, polymers, etc. intended in particular for the automotive industry;
- coating materials, films and agrochemicals (14.6%): resins, adhesives, polypropylene films, polyethylene films, industrial films, agrochemicals (insecticides, fungicides, herbicides, etc.) for the food and packaging sectors;
- specialty materials (10.2%): ophthalmic lens materials, photochromic materials, non-woven fibers, dental products, etc. dedicated to the medical and healthcare industry;
- other (0.9%).
Net sales are distributed geographically as follows: Japan (52.2%), China (14.5%), Asia (13.6%), America (11.8%), Europe (7.3%) and other (0.6%).
MITSUI CHEMICALS, INC. 
