HOUSTON, July 24, 2013 /PRNewswire/ -- South African-based energy and chemical company, Sasol and INEOS Olefins & Polymers USA (INEOS) today announced the signing of a Memorandum of Understanding (MOU) with the intent to form a joint venture to manufacture high density polyethylene (HDPE).
"This partnership will leverage the expertise of two global players in the chemical market. Together we will develop a world-scale HDPE plant which will allow us to monetize ethylene and supply a high quality product," said André de Ruyter, Sasol Senior Group Executive for Global Chemicals and North American Operations. "The joint venture expands on our greater North American strategy and will complement the products produced from the ethane cracker and derivatives project in southwest Louisiana."
The envisaged plant will produce 470 kilotons per annum of bimodal HDPE using Innovene™ S process technology licensed from INEOS Technologies. The intention is to produce a limited number of grades allowing high grade efficiencies.
"This joint venture demonstrates INEOS's continued commitment to the HDPE market and to growing end-use applications that benefit from bimodal technology. It enables two global companies to integrate with each partner's upstream businesses the leading bimodal slurry technology on a world-scale asset," said Dennis Seith, CEO of INEOS Olefins & Polymers USA.The final investment decision is expected to be made in the first half of 2014 with start-up of the plant expected at the end of 2015. Forward-looking statements: Sasol may, in this document, make certain statements that are not historical facts and relate to analyses and other information which are based on forecasts of future results and estimates of amounts not yet determinable. These statements may also relate to our future prospects, developments and business strategies. Examples of such forward-looking statements include, but are not limited to, statements regarding exchange rate fluctuations, volume growth, increases in market share, total shareholder return and cost reductions. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour" and "project" and similar expressions are intended to identify such forward-looking statements, but are not the exclusive means of identifying such statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and there are risks that the predictions, forecasts, projections and other forward-looking statements will not be achieved. If one or more of these risks materialise, or should underlying assumptions prove incorrect, our actual results may differ materially from those anticipated. You should understand that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors are discussed more fully in our most recent annual report under the Securities Exchange Act of 1934 on Form 20-F filed on 12 October 2012 and in other filings with the United States Securities and Exchange Commission. The list of factors discussed therein is not exhaustive; when relying on forward-looking statements to make investment decisions, you should carefully consider both these factors and other uncertainties and events. Forward-looking statements apply only as of the date on which they are made, and we do not undertake any obligation to update or revise any of them, whether as a result of new information, future events or otherwise. About Sasol: