German chemical giant BASF and British group Ineos on Monday announced the formation of a new joint venture to produce styrene, used to make plastics, turning their respective units into a separate entity. The resulting company, Styrolution, combines the two partners' global business activities in styrene monomers, polystyrene and other styrene-based products.
The signing of the joint venture last Friday "paves the way for a globally competitive business that will provide significant benefit to its customers," said Jim Ratcliffe, chairman of INEOS Capital. "Styrolution will be capable of meeting the long-term needs of a rapidly changing market as it competes effectively with large-scale producers from Asia and the Middle East," he added in a joint statement with BASF vice chairman Martin Brudermueller. Last November BASF and Ineos announced plans to form the joint venture with annual sales of five billion euros (6.5 billion dollars), based in Frankfurt.