INEOS has announced it has completed the acquisition of the Eastman Texas City site, the 600kt acetic acid plant and all associated third party activities, from Eastman Chemical Company. As previously announced, Eastman and INEOS have also entered into a Memorandum of Understanding to explore options for a long-term supply agreement for vinyl acetate monomer.

David Brooks, CEO INEOS Acetyls, comments "We are delighted to have completed this strategic acquisition which will help drive our global ambition for our Acetyls business. Our focus now will be on the integration of the site, business and employees into INEOS Acetyls.

The site is ideally placed to take advantage of competitively priced feedstocks which will help support the growth of our business and sustainable future of the site.

The plasticisers unit on the site will continue to be owned by Eastman, but will now be operated and maintained by INEOS. Eastman will also continue to manufacture acetyls at its Tennessee Operations in Kingsport.All current employees on the Eastman Texas City site have now transferred over to INEOS.

The total sale price of US$ 490 million consists of approximately $415 million cash at closing and the remainder in equal installments on the first and second anniversaries of the closing. The final purchase price is subject to working capital and other customary post-closing adjustments. Proceeds from the divestiture in the near term are expected to be used for debt repayment.