INEOS to expand etac capacity at UK’s Hull site

LONDON (ICIS)–INEOS will expand its ethyl acetate (etac) plant in Hull, northern England, by 100,000 tonnes/year bringing total capacity to 345,000 tonnes/year, the Switzerland-headquartered chemical major said on Thursday.

Financial details were not disclosed but INEOS said capital expenditure (capex) stood in the “multi-million” sterling pounds range.

The company expects the expansion to be finished by the end of 2017.

INEOS’ etac plant in Hull currently has a production capacity of 245,000 tonnes/year, according to the ICIS Plants and Projects database.

The company said the investment was the “first major UK investment” decision since the country voted in a referendum to leave the EU on 23 June, which has sparked fears the economy will struggle to expand outside the European single market.

“We believe in British manufacturing and will support it whenever we can,” said INEOS chairman Jim Ratcliffe.

INEOS added that the Hull site will be connected through a pipeline to its Scottish site at Grangemouth, enabling it to use ethylene as a raw material which will come out of shale gas imports from the US.

Following the UK’s vote on the EU, INEOS said it was not too concerned about its operations in the country given its global footprint.