INEOS to close Seal Sands ACN plant – local authority

LONDON (ICIS)–INEOS intends to close its Seal Sands, UK, acrylonitrile (ACN) plant, the office for a local Member of Parliament (MP) said, following a consultation on the future of the site launched by the petrochemicals producer earlier this year.

A spokesperson for the office of Stockton North MP Alex Cunningham confirmed that INEOS had emailed confirmation of the closure to local authorities, with closure expected in the New Year and decommissioning to run through 2020, with 145 job losses expected.

INEOS had not responded to requests for comment at the time of publication.

The company announced in October that it was launching a consultation on the future of the plant, but stated at the time that ”nothing more can be done” to make operations safe and profitable, claiming that the level of investment necessary for the site to be competitive was unviable.

The facility has been under INEOS control since 2008, and the company has invested €200m in operations there after what it has described as “decades of significant underinvestment”.

It would cost a similar sum to bring the unit up to environmental standards and improve the efficiency of its operations to a competitive level.

“What a blow before Christmas though it was clear from the outset that the company planned closure,” Cunningham said, commenting on social media.

“Shame [INEOS] don’t invest in the NE [northeast England] instead of Middle East,” he added.

The 280,000 tonne/year capacity site is understood to have been on force majeure for ACN from the site since February, but poor market demand means that market pricing has remained weak despite tighter supply, hitting a two-year low in November.

Front page picture: INEOS Nitriles’ Seal Sands facilities
Source: INEOS