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INEOS Phenol to expand phenol capacity of Mobile, Alabama, plant to 850,000 mt/year

Houston — INEOS Phenol said Wednesday it will expand the phenol capacity of its 540,000 mt/year Mobile, Alabama, plant to 850,000 mt/year, turning it into the largest plant in the world.

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"This expansion will meet anticipated growth in demand and shows a clear commitment to our customers to meet their long-term needs in North America," INEOS CEO Hans Casier said.

The company noted that the asset in Mobile was already the "largest and most efficient single train plant" in the US and said that the expansion will build on existing strength while taking advantage of its location in the US Gulf Coast.

The company cited anticipated demand growth as a driving factor behind the expansion. An anticipated start up date was said to be by 2021, according to a media spokesman.

Meanwhile, the US phenol market has been extremely tight in recent weeks on the back of healthy demand. Spot phenol in the US has been talked at 16 cents above the benzene contract and higher and prices were last assessed at $1,206/mt FOB USG.

--Kevin Allen,

--Edited by Pankti Mehta,