Page 51 - Plastics News June 2019

BUSINESS NEWS

Reliance Industries looks to Ineos to invest $2B in Saudi

strengthen petrochem business Arabia petrochemical plants

eliance Industries (RIL) is focusing on new business- he British petrochemical
Rto-customer initiatives to hedge against volatility Tcorporation Ineos has
and strengthen its petrochemicals business. inked a deal with Saudi
Aramco and Total to invest
Under this strategy, RIL will offer end-to-end tailor-made
solutions to industries to manufacture windmills, design $2 billion building three
complete railway compartments in three years, build plants in a petrochemical
underground tanks with a shelf life of 25 years against the complex in Saudi Arabia. It's
present 7-8 years, replace wood with composite material the first time Ineos, started
in home decor, make fire redundant fabric for curtains by a former executive Exxon
and design poles Mobil Corp. executive and Britain's richest person, is
with composites entering the Middle East.The three plants are part of
for the telecom a $5 billion petrochemical complex under development
sector, among by state-owned oil giant Saudi Aramco and French oil
others. major Total SA, according to a release from Ineos.
Ineos, which has a U.S. headquarters in League City
In an analysts outside Houston, has been growing with acquisitions
presentation to oil and gas fields and a major pipeline in the U.K. and
discuss March chemical plants in China and investments in plants in
quarter results, Belgium and the U.S. Gulf Coast and Alabama. "This
RIL said it is adopting a strategic shift towards the is a major milestone for Ineos that marks our first
consumer and diversifying into the production of investment in the Middle East. The timing is right for
chemicals using three major philosophies– investing us to enter this significant agreement in Saudi Arabia
in new-age technology and raw materials, moving with Saudi Aramco and Total. We are bringing advanced
from selling products to selling complete solutions downstream technology which will add value and
and adopting digital technology.“For petchem, we are create further jobs in The Kingdom," Ratcliffe said.
adopting a strategic shift towards the consumer. The The company said the plant's location will give it Ineos
diversified countercyclical portfolio provides a natural access to "competitive raw materials and energy, with
hedge against volatility," RIL said. RIL intends to position well invested infrastructure, to better serve customers
itself more as a customer-centric solution provider for directly in the Middle East and markets across Asia."
petchem product requirements. One can see a visible Ineos has signed a memorandum of understanding
shift in RIL’s petrochemical marketing strategy from a with Saudi Aramco and Total to build the plants in the
pure ‘B2B (business to business)’ to a B2C (business to Jubail 2 complex in Saudi Arabia. The plants include a
consumer) and solution driven approach," said an analyst 425,000 metric ton acrylonitrile plant and a a 400,000
tracking the company.This shift is part of RIL’s foray into metric ton linear alpha olefin plant. The investments
new materials segment---composites and carbon fibre, will be integrated into Saudi Aramco and Total's
said a company executive. RIL had in September 2017 mixed feedstock steam cracker, which is expected
acquired Gujarat-based Kemrock Industries and Exports to have a 1.5 million metric ton capacity. Ineos is a
for its foray into new materials--composites and carbon privately owned UK multinational chemicals company
fibre. According to Emkay Research in the composite headquartered in London, UK, and with registered
space, RIL’s target is to achieve $5-7 billion in revenue. offices in Lyndhurst, Hampshire, UK and London, United
In Paraxylene, the company is looking to diversify from Kingdom. It is the top chemicals company in the world
China to the US, Europe, etc. as units are coming up in as measured by sales revenue currently around $90
the former," said Emkay Research. billion. Jim Ratcliffe is the founder, Chairman and 60
percent shareholder.

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51 June 2019 Plastics News