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INEOS Polyolefins announce PP restructuring at Sarralbe

09 Jul 2007 - Having announced investment projects of more than EUR150M over the next three years, notably in high density polyethylene (HDPE) at Lillo and polypropylene (PP) at Geel, INEOS Polyolefins announced its intention to further restructure its assets to ensure a robust production platform capable of maintaining its leading market position for the long-term.
 
Consistent with this strategy, INEOS Polyolefins intend to exit PP production on two of their three PP lines at Sarralbe in France. The two slurry lines have become unsustainable due to feedstock issues and their exposure to grades/markets unable to provide sufficient returns through the cycle.
 
PP production on Line 2 (165ktpa) is expected to cease by the end of 2008, after having transitioned key customers to our plants in Lavera, France (debottlenecked by 10ktpa in Q4 2006 to 300ktpa) and Grangemouth, Scotland (currently being debottlenecked by 50ktpa to 285ktpa).
 
PP production on Line 1 (50ktpa) is expected to cease by the end of 2009, after having transitioned key customers to our plant at Geel, where copolymer capacity will be increased by 220ktpa to 500ktpa during 2009.
 
The third PP line (65ktpa) and all HDPE lines (200ktpa) at Sarralbe remain strategic to the Business, with unique technology enabling a strong portfolio of differentiated products.