INEOS to Acquire Eastman's Texas City Chemical Plant in $500 Million Deal

INEOS recently announced it has reached an agreement with Eastman Chemical Company to purchase the Eastman Texas City site, including the 600kt Acetic Acid plant and all associated third party activities on the site, for circa $500 million.

Eastman and INEOS have also entered into a Memorandum of Understanding to explore options for a long-term supply agreement for vinyl acetate monomer.

David Brooks, CEO INEOS Acetyls, comments "We are delighted to announce this strategic acquisition which will help drive our global ambition for our Acetyls business. The site is ideally placed to take advantage of competitively priced feedstocks which will help support the growth of our business and sustainable future of the site."

Currently INEOS licenses its leading Cativa® Acetic Acid Technology to Eastman Chemical Texas City for production of Acetic Acid at the site.

“We are happy to have reached this agreement with INEOS. They have been a strong partner with us at the Texas City site and have extensive experience and a complementary position in the acetyls space,” said Erwin Dijkman, Division President, Chemical Intermediates.

“Our Texas City Operations is an attractive site with an incredible team of people, and we are pleased that INEOS plans to further invest in and grow the site. We look forward to working closely with INEOS as we prepare for a seamless transition later this year, and longer-term as operators of our plasticizer assets at the site.”

All current employees on the Eastman Texas City site will transfer over to INEOS upon completion of the transaction. The plasticisers unit on the site will continue to be owned by Eastman, but will be operated and maintained by INEOS from closing.

The deal is targeted to close before the end of 2023, subject to regulatory approvals.

About INEOS Acetyls

INEOS Acetyls is a global producer of acetic acid and a range of derivatives. It is the largest producer of acetic acid, acetic anhydride, and ethyl acetate in Europe. In the US, the INEOS Acetyls business has been a leading supplier of acetic acid and acetic anhydride to North and South America for more than 45 years. And across Asia, the business provides acetic acid and commercial services across the region. It is one of the largest acetic acid suppliers in Asia, with a strong reputation in the industry for following world-class standards of production.

About INEOS

INEOS is a global petrochemicals manufacturer, comprising 36 individual businesses. We operate 194 facilities in 29 countries throughout the world, employing 26,000 people. INEOS makes the raw materials and energy used for everyday life. Its products make an indispensable contribution to society and are essential in applications ranging from the preservation of food to the provision of clean water; from construction of wind turbines, solar panels, and other renewable technologies to the construction of lighter and more fuel-efficient vehicles and aircraft; from medical devices and pharmaceuticals to clothing and apparel. In recent years INEOS has diversified with the launch of INEOS Automotive and INEOS Hygienics, the acquisition of iconic British brand Belstaff and an ever-expanding sports portfolio. As part of its greenhouse gas emission reduction strategy, INEOS businesses have put in place plans and actions needed to ensure that they lead the transition to a net zero economy by no later than 2050, whilst remaining profitable. 

About Eastman

Founded in 1920, Eastman is a global specialty materials company that produces a broad range of products found in items people use every day. With the purpose of enhancing the quality of life in a material way, Eastman works with customers to deliver innovative products and solutions while maintaining a commitment to safety and sustainability. The company’s innovation-driven growth model takes advantage of world-class technology platforms, deep customer engagement, and differentiated application development to grow its leading positions in attractive end markets such as transportation, building and construction, and consumables. As a globally inclusive and diverse company, Eastman employs approximately 14,500 people around the world and serves customers in more than 100 countries. The company had 2022 revenue of approximately $10.6 billion and is headquartered in Kingsport, Tennessee, USA.