Antwerp lands a €3.0b-big investment

Photo: INEOS

INEOS, a London-headquartered multinational chemicals company, will set up a brand-new propane dehydrogenisation (PDH) plant and an ethane cracker unit in the Belgian port.

These two will respectively convert propane into propylene and ethylene as the raw materials for chemical products that find their way into many industries, including car manufacturing, construction, clothing, cosmetics and personal grooming products, pharmaceuticals, electronics, and packaging materials.

The plants will be built on the existing INEOS site in Lillo in the port area as well as on the unused parts of the concessions held by neighbouring companies which the British company will take over.

The new facilities are expected to be operational by 2024. Once the plants are up and running they will provide 400 full-time jobs directly and five times that number indirectly. Some 3,000 people will be employed during the construction phase.

"Our investment in a world-class ethane cracker and PDH plant is the largest of its kind in Europe in more than a generation. As such it is a major development for the European petrochemical industry. We believe that this investment can reverse the decline in the European chemical industry in recent years," Jim Ratcliffe, CEO and Chairman, INEOS, commented.

Hans Casier, CEO, INEOS Phenol, and Chairman, essenscia (a chemical and life sciences industry federation), also said, "The fact that Antwerp has been chosen as the location for this investment is a big new boost to the international competitive position of the existing chemical cluster. This is a great success not only for the chemical industry in the port, but also for the economy of Flanders, Belgium and indeed the whole of Europe."

"After Borealis similarly opted for Antwerp a few months ago, this decision by INEOS puts the chemical sector in Flanders even more firmly on the world map. In particular the construction of a hyper-modern cracking plant based on the very latest technology is of great strategic importance, as not since the 1990s has such an installation been built in western Europe. A cracker produces the essential simple molecules that form the basis of the entire chemical industry. And by creating at least 400 new jobs the project will be a significant boost to employment in this sector," Frank Beckx, Managing Director, essenscia Flanders, added.

He also underlined, "This is undoubtedly the most important economic news in a long time. Such an investment - which in turn will probably attract others of its kind - further strengthens the position of the chemical industry as the key sector of the Flemish economy. This is a massive vote of confidence, inspiring us to maintain our collaboration with government in building up a strong competitive position internationally for this world-leading chemical cluster."

Jacques Vandermeiren, CEO, Antwerp Port Authority, commented on the port's investment portfolio, "It is naturally very good news that INEOS has selected our port for this major new investment. It once more demonstrates that we as the largest integrated chemical cluster in Europe are very attractive to international investors. Furthermore, propylene and ethylene are the starting points for many other processes, so production of these basic components will further strengthen our raw materials position in the chemical industry and indeed many other industries in our country. This mega-investment brings the total amount of new capital expenditure that we have attracted to Antwerp over the past year to more than 5 billion euros. This will undoubtedly help to secure the presence of industry here in Antwerp, and will make an essential contribution towards creating a sustainable future for our port and for the Belgian economy."

To this Bart De Wever, Mayor of the City of Antwerp, added, "Today, we have the opportunity to announce the largest investment in the European chemical industry in 20 years. I have to admit that I am overcome by pride and humility. These are the moments you live and work for. Antwerp is thriving. A statement I will repeat again and again because we really have to stop doom-and-gloom scenarios once and for all. We can have every confidence in the future. The economic climate is healthy. Antwerp is open for business. This is an investment for an entire generation. It also demonstrates that even in times of Brexit uncertainty, investors still maintain belief in the process of economic growth, internationalisation and sustainable technology. There remains trust in progress."

The Antwerp-INEOS deal has also been cut thanks to the so-called Welcome Team for the Chemical Sector, set up by Flanders Investment & Trade (FIT) and essenscia Flanders. "This initiative brings together a team of experts offering intensive support to foreign chemical companies, helping them with investment projects and highlighting the advantages for the chemical industry in Flanders in terms of innovation, tax policy and investment support, among others. With some 300 investment projects since 2010 the chemicals and life sciences sector represents around half of all foreign investment in Flanders," a press release from the Port of Antwerp read.

Geert Bourgeois, Minister-President of Flanders, commented in this regard, "This is particularly good news, an exceptional event: the largest investment in Flanders in the past 20 years. The project is also a good illustration of long-term collaboration between various ministries and government departments, the industry associations, the port etc., all with a shared objective and coordinated by my agency, Flanders Investment & Trade."

"An investment of 3 billion euros in the port of Antwerp by INEOS is particularly good news not just for the Flemish economy, it also underlines the efficient collaboration between government, the business world, centres of knowledge and Antwerp Port Authority that enables our region to attract such large investments. The Welcome Team for the Chemical Sector - which is coordinated by FIT - offers the necessary expertise for finding the ideal location, selecting the right local partners, etc. To give this investment a kick-start in Flanders various government departments were intensively involved. All those who participated in this project reacted very promptly and professionally to queries from INEOS, providing in-depth responses. The package of tailor-made services that was specially put together managed to brilliantly convince the British chemical company and landed the investment despite intense competition," Claire Tillekaerts, Managing Director, FIT, summed up.