Ineos has started the new year on the front foot - completing the £3.6 billion acquisition of BP’s global Aromatics and Acetyls businesses.
The huge deal, involving several sites in Europe, Asia and the US, will see the Saltend operations combined, taking the British chemical company’s employment numbers from 40 to 380.
It is described as extending both the portfolio and the geographic reach of the business, and the divisions will be known as Ineos Acetyls and Ineos Aromatics.
Sir Jim Ratcliffe, founder and chairman of Ineos, and a former Beverley Grammar School pupil, said: “I am very pleased that we have been able to complete the acquisition, which is a logical development of our existing petrochemicals business extending our interest in acetyls and adding a world leading aromatics business supporting the global polyester industry.”
The agreed deal was announced in June, with group communications manager for Ineos, Richard Longden, stating it was the “missing piece of the chemistry set” after two previous business unit buy-outs in 2005 and 2008.
A £150 million investment in a replacement vinyl acetate monomer plant is ongoing in East Yorkshire.
“We are continuing to invest, it is core for us, and a natural fit in the heart of our chemicals business,” Mr Longden said following the initial announcement.
“The combination of the two will be great for Hull.”
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The focus at Saltend is acetyls. It produces acetic acid and a range of derivatives from its nine sites, supplying a wide range of downstream industries such as food, pharmaceuticals, paints, adhesives and packaging.
The deal was described as strengthening that VAM investment, as the unification will make the whole process more efficient with directly integrated processes.
Acetyls was hailed as hero production as the pandemic kicks in, with acetic acid and acetic anhydride, critical for producing medications, such as paracetamol, insulin and high blood pressure treatments; disinfectant used in hospitals; medical protective clothing; and a bleaching activator in disinfectant, sterilant, sanitiser and detergents.
BP had celebrated 50 years at Saltend in 2017.