INEOS Olefins and Polymers USA on Tuesday said it had agreed with Sasol Chemicals North America LLC to acquire its 50% ownership in the Gemini HDPE Holding Co for $404 million. Through the acquisition, INEOS O&P USA will take over 100% interest in Gemini. The proposed acquisition is targeted to close by December 31, 2020.
Sasol and INEOS opened the Gemini HDPE plant in Texas in 2017. The plant is operated by INEOS and is located within the company’s Battleground Manufacturing Complex in La Porte, Texas. The plant uses INEOS’ proprietary INNOVENETM S Technology to produce bimodal high-density polyethylene products at a nameplate capacity of 470,000 tons/year.
Sasol said the sale would help it to focus on specialty chemicals. It is also part of the company’s restructuring to cut down debt. Sasol’s debt totalled ZAR189.7 billion ($12.34 billion) for the financial year ended June 30. In October, the company said LyondellBasell agreed to acquire a 50% stake in cracker, LLDPE, and LDPE units at its Lake Charles chemical complex for $2 billion.
