December 9, 2024 – In a significant strategic move, global chemical giant INEOS has announced a formal agreement with renowned private equity firm KPS to sell its entire composites business division. The transaction, valued at approximately 1.7 billion euros, is expected to be smoothly completed in the first half of 2025.
INEOS’ composites business encompasses a diverse portfolio, including unsaturated polyester resins, vinyl ester resins, and gel coats, which play crucial roles in the production of plastic composites for major global end-markets. With annual sales exceeding 800 million euros, the division boasts 17 production sites and 3 technology centers across Europe, North and South America, Asia, and the Middle East, employing nearly 900 people. Its resin products are highly trusted by customers for their exceptional corrosion resistance, flame retardancy, UV resistance, water and chemical resistance, thermal insulation, electrical insulation, impact and scratch resistance, and high strength-to-weight ratio.
According to Color Masterbatch Industry News, the buyer, KPS, is an experienced investment management company with a substantial fund under management. As of September 30, 2024, KPS’ assets under management totaled a staggering 21.4 billion dollars. The firm has a proven track record in acquiring and investing in various sectors, including basic materials, branded consumer products, healthcare, luxury goods, automotive components, capital equipment, and general manufacturing.
Meanwhile, INEOS has been undertaking a series of business adjustments. Earlier, the company announced the permanent closure of its ABS polymer production facility in Addyston, Ohio, which primarily produces acrylonitrile-butadiene-styrene (ABS) and styrene-acrylonitrile (SAN) polymers widely used in automotive, household, healthcare, and construction industries. The closure was attributed to the increasingly competitive global ABS market, particularly the rising impact of overseas imports on the North American market. Additionally, INEOS decided not to restart its styrene plant in Sarnia, Ontario, Canada, and plans to complete its shutdown in the fourth quarter of 2025. Simultaneously, INEOS Olefins & Polymers UK announced the closure of its ethanol plant in Grangemouth, Scotland, in the first quarter of 2025, due to decreasing European demand for ethanol and increased import pressures resulting in continuous losses.
These moves by INEOS signify its strategic adjustment and optimization of resource allocation amidst the ever-evolving global chemical market landscape. The industry eagerly awaits to see how INEOS will further strategize and develop in the future.