Ineos
Encyclopedia
INEOS Group Limited is a privately owned multinational
chemicals company headquartered in Lausanne
, Switzerland
and with its registered office in Lyndhurst
, United Kingdom
. It is the third-largest chemicals company in the world measured by revenues (after BASF
and Dow Chemical) and the largest privately owned company in the United Kingdom.
Ineos reportedly prefers to run operations with minimal on-site management, the concept that "work teams" are better suited for handling of the workflow day to day, without middle-management. Jim Ratcliffe
is the Chairman and main shareholder.
of the former BP
petrochemicals assets in Antwerp, Belgium. Since then, it has expanded by purchasing several other businesses. Several of its divisions formerly belonged to BP, and others have been divested by large companies such as Amoco
, BASF
, ICI
, Dow Chemical, Solvay
and UCB
, as they have looked to focus more closely on their main product lines. In October 2005 Ineos agreed to purchase Innovene, BP’s olefins and derivatives and refining subsidiary, which had an estimated 2005 turnover of US$25 billion, for $9 billion. The deal, which was completed on 14 December 2005, roughly quadrupled Ineos's turnover, which was previously around $8 billion.
In 2007 Ineos formed a joined venture with Lanxess
and created Ineos ABS, comprising Lanxess's activities in Acrylonitrile butadiene styrene
production, located in Tarragona
. Ineos paid €35 million in a first tranche.
As of late April 2008 Ineos was at the centre of an industrial relations dispute with Unite the Union
over pension policies affecting the workforce at its Grangemouth Refinery
. The company had taken the decision to close the company's final salary pension
scheme to new employees. It is also claimed by Unite that workers at Grangemouth are paid £6,000 less than workers at other similar facilities. Ineos has been accused by Unite of "economic terrorism
".
In February, 2011 "INEOS Bio breaks ground on landmark advanced biofuels facility in Florida."
"INEOS Bio’s biorefinery will have the capacity to produce 8 million gallons of ethanol and 6 megawatts (gross) of electricity per year." "The INEOS Bio process can produce ethanol and renewable energy from numerous non-food feedstocks, including construction and municipal solid waste, forestry and agricultural waste."
Multinational corporation
A multi national corporation or enterprise , is a corporation or an enterprise that manages production or delivers services in more than one country. It can also be referred to as an international corporation...
chemicals company headquartered in Lausanne
Lausanne
Lausanne is a city in Romandy, the French-speaking part of Switzerland, and is the capital of the canton of Vaud. The seat of the district of Lausanne, the city is situated on the shores of Lake Geneva . It faces the French town of Évian-les-Bains, with the Jura mountains to its north-west...
, Switzerland
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....
and with its registered office in Lyndhurst
Lyndhurst, Hampshire
Lyndhurst is a village and civil parish in the New Forest, Hampshire, England. It is a popular tourist location with many independent shops, art galleries, cafés, restaurants, pubs and hotels. The nearest city is Southampton located around nine miles to the north-east...
, United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
. It is the third-largest chemicals company in the world measured by revenues (after BASF
BASF
BASF SE is the largest chemical company in the world and is headquartered in Germany. BASF originally stood for Badische Anilin- und Soda-Fabrik . Today, the four letters are a registered trademark and the company is listed on the Frankfurt Stock Exchange, London Stock Exchange, and Zurich Stock...
and Dow Chemical) and the largest privately owned company in the United Kingdom.
Ineos reportedly prefers to run operations with minimal on-site management, the concept that "work teams" are better suited for handling of the workflow day to day, without middle-management. Jim Ratcliffe
Jim Ratcliffe
James Arthur Ratcliffe is a chemical engineer turned financier and industrialist. According to the 2010 Sunday Times Rich List, he is one of the richest people in the United Kingdom....
is the Chairman and main shareholder.
History
Ineos was formed in 1997 to effect a management buyoutManagement buyout
A management buyout is a form of acquisition where a company's existing managers acquire a large part or all of the company.- Overview :Management buyouts are similar in all major legal aspects to any other acquisition of a company...
of the former BP
BP
BP p.l.c. is a global oil and gas company headquartered in London, United Kingdom. It is the third-largest energy company and fourth-largest company in the world measured by revenues and one of the six oil and gas "supermajors"...
petrochemicals assets in Antwerp, Belgium. Since then, it has expanded by purchasing several other businesses. Several of its divisions formerly belonged to BP, and others have been divested by large companies such as Amoco
Amoco
Amoco Corporation, originally Standard Oil Company , was a global chemical and oil company, founded in 1889 around a refinery located in Whiting, Indiana, United States....
, BASF
BASF
BASF SE is the largest chemical company in the world and is headquartered in Germany. BASF originally stood for Badische Anilin- und Soda-Fabrik . Today, the four letters are a registered trademark and the company is listed on the Frankfurt Stock Exchange, London Stock Exchange, and Zurich Stock...
, ICI
Imperial Chemical Industries
Imperial Chemical Industries was a British chemical company, taken over by AkzoNobel, a Dutch conglomerate, one of the largest chemical producers in the world. In its heyday, ICI was the largest manufacturing company in the British Empire, and commonly regarded as a "bellwether of the British...
, Dow Chemical, Solvay
Solvay (company)
Solvay S.A. is a Belgian chemical company with its head office in Ixelles, Brussels, Belgium. It was founded in 1863 by Ernest Solvay to produce sodium carbonate by the solvay process. Since then the company has diversified to two major sectors of activity: chemicals and plastics...
and UCB
UCB (company)
UCB is a multinational biopharmaceutical manufacturing company headquartered in Brussels, Belgium.- History :UCB was founded on 18 January 1928 by Emmanuel Janssen, a Belgian businessman...
, as they have looked to focus more closely on their main product lines. In October 2005 Ineos agreed to purchase Innovene, BP’s olefins and derivatives and refining subsidiary, which had an estimated 2005 turnover of US$25 billion, for $9 billion. The deal, which was completed on 14 December 2005, roughly quadrupled Ineos's turnover, which was previously around $8 billion.
In 2007 Ineos formed a joined venture with Lanxess
Lanxess
Lanxess AG is a specialty chemicals group based in Germany, with headquarters and major operations in Leverkusen. It was founded in 2004 when Bayer AG spun off its chemicals operations and parts of its polymer activities. As measured by sales, Lanxess is the fourth largest chemicals group in Germany...
and created Ineos ABS, comprising Lanxess's activities in Acrylonitrile butadiene styrene
Acrylonitrile butadiene styrene
Acrylonitrile butadiene styrene is a common thermoplastic. Its melting point is approximately 105 °C ....
production, located in Tarragona
Tarragona
Tarragona is a city located in the south of Catalonia on the north-east of Spain, by the Mediterranean. It is the capital of the Spanish province of the same name and the capital of the Catalan comarca Tarragonès. In the medieval and modern times it was the capital of the Vegueria of Tarragona...
. Ineos paid €35 million in a first tranche.
Corporate social responsibility
The company has been accused by some sources of buying assets then cutting costs through the introduction of new working practices, lower wages, and terminating pension schemes.As of late April 2008 Ineos was at the centre of an industrial relations dispute with Unite the Union
Unite the Union
Unite – the Union, known as Unite, is a British and Irish trade union, formed on 1 May 2007, by the merger of Amicus and the Transport and General Workers' Union...
over pension policies affecting the workforce at its Grangemouth Refinery
Grangemouth Refinery
Grangemouth refinery is a mature complex oil refinery located on the Firth of Forth in Grangemouth, Scotland.Currently operated by Ineos, it is Scotland's only oil refinery , and is also the UK's second-oldest; it supplies refined products to customers in Scotland, northern England, Northern...
. The company had taken the decision to close the company's final salary pension
Pension
In general, a pension is an arrangement to provide people with an income when they are no longer earning a regular income from employment. Pensions should not be confused with severance pay; the former is paid in regular installments, while the latter is paid in one lump sum.The terms retirement...
scheme to new employees. It is also claimed by Unite that workers at Grangemouth are paid £6,000 less than workers at other similar facilities. Ineos has been accused by Unite of "economic terrorism
Economic terrorism
The term economic terrorism is strictly defined to indicate an attempt at economic destabilization by a group. More precisely, in 2005 the Geneva Centre for Security Policy defined economic terrorism in the following terms:...
".
In February, 2011 "INEOS Bio breaks ground on landmark advanced biofuels facility in Florida."
"INEOS Bio’s biorefinery will have the capacity to produce 8 million gallons of ethanol and 6 megawatts (gross) of electricity per year." "The INEOS Bio process can produce ethanol and renewable energy from numerous non-food feedstocks, including construction and municipal solid waste, forestry and agricultural waste."