Ineos O&P to acquire 50% of Gemini HDPE asset in LaPorte, Texas, from Sasol Chemicals

Houston — Ineos Olefins and Polymers USA has announced it has agreed to principle terms to acquire 50% of Sasol Chemicals North America's stake in Gemini high-density polyethylene assets for $404 million, the companies said Nov. 24.

"We are excited about the opportunity to acquire Sasol's half of Gemini. This world-class asset is positioned to serve the growing global bimodal markets and would allow our business to meet increased demand from our customers," Michael Nagle, CEO of INEOS O&P USA said.

"This divestment continues the transformation of Sasol's chemicals business toward specialty chemicals markets," said Fleetwood Grobler, Sasol President and Chief Executive Officer.

"The sale represents a further step in achieving Sasol's strategic and financial objectives by accelerating the focus on specialty chemicals and reducing net debt. Proceeds from the transaction will be used by Sasol to repay near-term debt obligations," the statement said.

The plant has a 460,000 mt/year nameplate capacity and started up over three years ago in November 2017, according to S&P Global Platts data.

Gemini is housed in Ineos' complex and would consolidate 100% of ownership under Ineos.

Gemini is a toll manufacturer of bimodal HDPE including HDPE pipe and film resins.

The acquisition would allow INEOS O&P USA to further expand its reach in the specialty polyethylene markets of pressure pipe and high molecular weight film, the notice said.

The acquisition is expected to close Dec. 31, according to Ineos. Sasol's statement said it would be by the end of the year.