Ineos unveils €2.7bn investment in new European chemical plants

Ineos has committed to building a new world-scale chemical cracker and PDH (propane dehydrogenation) plant in north-west Europe. The €2.7bn investment is the biggest ever made by Ineos and is the first cracker to be built in Europe in over 20 years.

Jim Ratcliffe, Founder and Chairman of Ineos, says: ‘This is the largest investment to be made in the European chemical sector for a generation. It will be a game changer for the industry and shows our commitment to manufacturing.’

The location of the site will be determined soon. A project team has been assigned to consider options and the project is expected to be completed within four years.

Gerd Franken, CEO Ineos Olefins and Polymers North, says: ‘This new project will increase Ineos’ self-sufficiency in all key olefin products and give further support to our derivatives business and polymer plants in Europe. All our assets will benefit from our ability to import competitive raw materials from the US and the rest of the world.’

This new investment follows a decision taken by Ineos last year to increase the capacity of its existing crackers.

Commenting on the announcement, Patrick Kirby, PCI Wood Mackenzie Principal Analyst, says: ‘This major investment undertaken by Ineos highlights their commitment to, and confidence in, the long-term outlook for the European olefins industry. Within the last decade, the region has moved from protectionism and consolidation to collaboration and growth. The region continues to successfully reinvent itself as global opportunities present themselves. Strong margins and profitability in the last three to four years have encouraged companies to look confidently into the future. There are now clear signs that the European olefins industry is no longer dying or declining, but instead flourishing.’