LyondellBasell to Sell Ethylene Oxide & Derivatives Business to INEOS

Researched by Industrial Info Resources (Sugar Land, Texas)-- LyondellBasell (NYSE:LYB) (Rotterdam, Netherlands) has reached its goal of offloading its Ethylene Oxide & Derivatives business with plans to sell it to U.K.-based INEOS Limited (London, England). The $700 million sale includes LyondellBasell's production plant in Bayport, Texas, the companies announced Friday.

LyondellBasell Chief Executive Officer Peter Vanacker said in the press release that the transaction is a sign of his company's growth and an upgrading of its core.

"Successful execution of this strategic pillar involves making difficult decisions to divest businesses which are not part of our core," said Vanacker, who added he was "excited to have reached an agreement with INEOS to enable the business to continue generating value under different ownership."

INEOS Oxide Chief Executive Officer Tobias Hannemann said the purchase expands the company's Ethylene Oxide & Derivatives business into the U.S. and complements its ethanolamines production plant in Plaquemine, Louisiana.

The transaction is expected to close in second-quarter 2024.

LyondellBasell discussed strategic options for its Ethylene Oxide & Derivatives business earlier this year. For more information, see March 22, 2023, article - LyondellBasell Mulls Strategic Options for Gulf Coast Ethylene Oxide & Derivatives Business.

Also in March, LyondellBasell wrapped up construction of an oxyfuels additives unit to produce ethyl tertiary-butyl ether (ETBE) at the Bayport site. Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project Database can click here for a report on the Bayport project and click here for the plant profile.

LyondellBasell also plans to exit the petroleum refining business to shift its focus to its Circular and Low Carbon Solutions business. LyondellBasell is keeping its 268,000-barrel-per-day (BBL/d) Houston, Texas, refinery open through 2024. For more on that, see June 1, 2023, article - LyondellBasell Delays Exit from Refining Business.

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