Sasol Chemicals North America and INEOS Olefins &
Polymers announced Monday that they have reached final
investment decision to form a joint venture to build a
high-density polyethylene (HDPE) plant in La Porte, Texas.
The 50/50 joint venture will produce 470,000 tpy of bimodal
HDPE using Innovene S
licensed from INEOS
The ethylene required for the production of the HDPE will be
supplied by Sasol and INEOS in proportion to their respective
will expand Sasol's
presence in the global chemical market and complement our
North American growth strategy," said Fleetwood Grobler,
Sasol's group executive for global chemicals. "Its location
offers several benefits, including access to US Gulf Coast
infrastructure and proximity to our current and proposed
ethane cracker and derivatives complex in Southwest
INEOS will operate the HDPE plant at its Battleground
manufacturing complex in La Porte. Plant start-up is expected
in the 2016 calendar year.
"This investment will allow INEOS to meet our customer's
needs for additional bimodal products," said Dennis Seith,
CEO of INEOS Olefins & Polymers. "It also supports
INEOS's strategy to invest and to capture synergies on our
The definitive agreements are in the process of being
finalized, and all relevant permits have been obtained.
Because the plant will be debt financed, the investment
decision is conditional on achieving financial close.
Sasol and INEOS announced their intention to form this joint
venture in July 2013.