Ineos Styrolution, a German styrenics supplier, has announced its plans to build a new ABS plant in China with a planned annual capacity of 600,000 tonnes.
To be located in Ningbo, China, the new production site will be located next to Ineos’ recently acquired polystyrene plant.
Construction of the plant is planned to begin this year and is expected to be operational in 2023.
The announcement by Ineos Styrolution is part of its Strategic Cooperation Framework Agreement with the Ningbo Municipal People’s Government signed on 9 January 2020.
The framework agreement is expected to be mutually beneficial for both Ineos and Ningbo City.
Ineos Styrolution CEO Kevin McQuade said: “Asia has been identified by us as a significant growth market. Today’s announcement shows our dedication to our Triple Shift growth strategy. As the global leader in styrenics, we are committed to supporting our Chinese customers’ growth with our new local production capacities.”
The announcement to build the plant comes less than a year the company agreed to acquire two polystyrene production sites, as it embarks on its plans to grow its production capacity in the country.
Ineos Styrolution also plans to build a greenfield ABS plant next to the Ningbo polystyrene site in the Zhejiang Province in Eastern China.
Ineos Styrolution Asia-Pacific president said Steve Harrington said: “China is the biggest ABS market in the world. This new investment will give us a tremendous opportunity to provide our customers in the region with locally produced ABS grades.”
Ineos Styrolution is focused on styrene monomer, polystyrene, ABS Standard and styrenic specialities.
In November 2019, Ineos opened a new polymer pilot plant in Rosignano, Italy to produce new plastics of waste plastic.
It is part of the company’s €100m research and development programme to support its global customers.
The new plant will help in diverting plastic waste which will end up either in landfills or incineration centres and will instead be transformed into new polymers. Plastics produced at the plant could be used in light weight cars, the company claimed.
Image: Ineos Styrolution to build a new factory in China. (Credit: INEOS Capital Limited.)