Rising Challenge
Total Page：16
File Type：pdf, Size：1020Kb
Rising to the Challenge 2020 REVIEW Responding quickly to exceptional circumstances Landmark deal completes the chemistry set OVERVIEW Rising to the challenge For most companies, spending $5bn on one of the largest deals in its history would be the most Ensuring plants remained operational significant thing to happen in any given year. and that staff were protected has But 2020 has been quite exceptional been a priority during a tough year or INEOS, this past year has COVID-19 had an irrevocable works, says Crotty. been filled with challenges and effect on our everyday lives and “The fact the company’s Fsuccesses in equal measure. changed people’s behaviour. chairman and major shareholder In March, everything changed. Hygiene and heightened levels of is literally on the phone every day, As coronavirus took hold, social cleanliness had become a necessity, talking about what we need to do distancing, remote working and and the essential ingredients tomorrow, means our decision- widespread disruption became the required to make hand sanitiser making processes are slick and that norm. As an essential sector, the were in short supply. As Europe’s there aren’t any hurdles we can’t chemical industry had to carry on only manufacturer of ultra-high overcome,” he notes. regardless – albeit facing myriad purity ethanol and one of just two “It was a phenomenal response measures and restrictions. producers of isopropyl alcohol from everybody during a period “Of all years, 2020 has proven (IPA), INEOS Chairman Sir Jim of crisis. We all had a common INEOS’ ability to respond rapidly Ratcliffe responded to the needs objective: to get this done and to and to get things done,” says of governments and suggested get it done quickly.” Director of Corporate Affairs, Tom making hand sanitisers in-house. Distributing those vital supplies Crotty. “COVID-19 caught all of “He set us a challenge to see if to frontline medical staff was us by surprise but we reacted very we could build a plant in 10 days initially a bureaucratic minefield quickly to protect our people and and make one million bottles but it provided the perfect chance to do what we could to help.” per month, which we duly did,” to leverage some of the unique Safeguarding staff and says Crotty. “We then ended up skillsets from across the business. supporting local communities building six of these plants – each A phone call from Ratcliffe was a priority, as was ensuring within a 10-day timeframe – and enlisted the help of Sir Dave production facilities remained supplying millions of bottles of Brailsford. His cycling team – now operational to ensure a steady free hand sanitiser to thousands the INEOS Grenadiers – quickly and reliable supply of the 300 raw of hospitals across the UK, Europe took control of the logistics, materials used by the medical and and the US.” ensuring deliveries were made healthcare sectors, he adds. With the concept proven, when, and where, needed. As one of the world’s leading INEOS Hygienics was born – a Sir Ben Ainslie and INEOS manufacturers, INEOS was also new consumer-facing business TEAM UK also soon came firmly focused on doing all it could with a rapidly-growing portfolio onboard and despite their to provide personal protective consisting of hand sanitiser gels, preparations for the upcoming Newton Aycliffe equipment (PPE), facemasks, the in the UK was the sprays, wipes, and dispensers. America’s Cup offered their plastics used in ventilators, and hand first bottling site This exemplifies the way INEOS advanced 3D printers and sanitisers to help fight the virus. machinery typically used for “We reacted quickly to the sail making to produce PPE face shortage of hand sanitiser and shields for the health service. worked with governments around Its most recent partnership the world to get the product out as with the Mercedes-AMG Petronas front line medical teams were in Formula One team also saw them desperate need of it,” says Crotty. turn their unique engineering skills “Our main aim was to get product to developing a new respiratory made quickly and distributed free ventilator system during the early of charge to the health services. stages of the outbreak. And out of all this, sprung a brand “It was a real team effort; a united Images: INEOS / Max Emanuelson Images: INEOS / Max new business.” front that brought together all of 2 people, with assets that INEOS had the cracker first. When complete, already acquired from BP when it this will be home to Europe’s first bought Innovene back in 2005. ethylene cracker for over two “With BP looking to refocus decades, and the most efficient. and revise its strategy, an exit from INEOS’ commitment to the chemical business has been sustainability and the circular in the offing for some time. We’ve economy has been unwavering always let it be known that if there during the crisis and, despite all the was this kind of opportunity, then disruption, there were still plenty we’d be interested – and now, we’ve of exciting developments. finally completed the chemistry Early 2020 started with news set,” says Crotty. that UPM Biofuels would supply “The BP deal will give us the Hull renewable raw materials to site in its entirety, so that's a huge produce bio-based polyvinyl step change for us. That means that chloride (PVC) – another world we will then have three very large first. This was followed by a footprints in the UK – a triangle partnership with Forever Plast from Grangemouth at the tip, to recycle and reuse over 6.5bn Runcorn on the west coast and Hull bottle caps, plans for a new plant these seemingly different ventures on the east coast. All are major sites with Plastic Energy to convert and the unique skills we've got that show the importance of the UK plastic waste into new high quality within the group,” notes Crotty. to our business.” polymer, and the unveiling of the “As an organisation we've always Equally, tough times have called ambitious Power to Methanol been very light at the centre. We’ve for some difficult decisions too. project to produce methanol got 30 self-contained business The financial impact of the virus, from captured CO2 combined units that could all move outside combined with the long-term with hydrogen generated from of the group and still survive. We decline in fuel demand, saw part renewable electricity. run them as a federation rather of the Grangemouth refinery “This year, of all Add a decade-long wind farm than a corporation, and they all mothballed. “With the refinery, years, has proven deal to source renewable energy, have the resources they need, when it’s about rescaling for the future INEOS’ ability to and the launch of a new hydrogen they need them. We always ensure and having a 150,000bbl site that respond rapidly and business into the mix, and INEOS’ we learn from one another. That's supports 450 high quality jobs. commitment to a more efficient the way we operate and it’s always That's our aim,” he insists. to get things done” and environmentally-friendly worked well for us.” It was also decided that the future is evident. Even with all eyes turned to Forties Pipeline System, which Tom Crotty, “I'd like to see 2021 be the the handling of the pandemic, had been due to start scheduled Director of year where we start to grow arguably one of the year’s biggest maintenance as part of a £500m Corporate Affairs, our hydrogen business and headlines was the announcement rejuvenation plan, would have the INEOS we can really demonstrate our in June that INEOS was to acquire works postponed until spring 2021. commitment to advanced recycling BP’s aromatics and acetyls business Given over 40% of the UK’s oil by getting some facilities up and for $5bn. It was hugely significant and gas travels through the 500km running,” he says. “We also want news – not only due of the deal’s network, delaying the plans would to see the Hygienics business well size and scale but because the help to support customers and the established and integrate the new complex negotiations had to be wider economy during the crisis. BP businesses firmly into ours. carried out virtually via Skype in Other major projects, however, There’s the launch of the Grenadier the midst of the outbreak. have been making good progress. and on the sporting side, if we can “INEOS was clearly not In the US, the Chocolate Bayou win a couple of Grand Tours and insulated from the impact of site in Texas has been a hive of finish in the top four in the Swiss coronavirus but it has largely activity, with work on INEOS and French Leagues, that wouldn’t been business as usual,” he insists. Oligomers’ new alpha olefins units. be too bad either.” “We're bullish and in very good On the other side of the “Something that's really shape financially – and it certainly globe, the three new plants in changed this year is our profile as hasn’t affected any of our long- the Kingdom of Saudi Arabia a company. Our name is now seen term planning. So much so, that at the Jubail 2 site are on track, on the shirts of a cycling team, a we’re now in the process of making while INEOS Styrolution is Formula One car, and on the sail this massive acquisition that will also expanding its footprint in of a boat. We also now have three completely change the shape of our China with a 600,000 tonne/year significant consumer businesses in chemicals business.” acrylonitrile butadiene styrene INEOS Hygienics, the Grenadier This “lockdown deal” completed facility in Ningbo.