ABS joint venture

The Ineos Group has agreed to set up a joint venture with Lanxess which will take over the operation of the Lanxess ABS plastics business, Lustran Polymers.

Firstly, Ineos will pay Lanxess €35m for a 51 percent majority share in the new business which will be called Ineos ABS.

Ineos will then acquire the remaining 49 percent share in the new company, two years after the first stage of the deal closes, for a price based on the performance of the business in the two year period.

Lustran Polymers is currently the world’s third largest and Europe’s leading supplier of ABS plastics, with sales amounting to almost €900m.

On completion of the agreement, assets in Dormagen (Germany), Tarragona (Spain), Map Ta Phut (Thailand), Vadodara (India), Addyston (US) and around 1600 employees will be transferred to the new company.

The acquisition is conditional on approval from the relevant antitrust authorities and is expected to close at the end of September 2007.