INEOS and MSM Poly to support Barex resin production
INEOS Barex and INEOS Barex USA have signed a memorandum of understanding (MoU) for selling intellectual property (IP) and production support related to products to US-based MSM Poly.
The non-binding agreement with INEOS will enable MSM to obtain existing IP’s and specific physical assets from INEOS as well as commercial/operational support and a supply of Barex resin.
INEOS Barex CEO Paul Overment said: “This MoU allows both groups to move forward in the process, while providing some assurance to current Barex users that the brand could be made available post the exit of INEOS.”
INEOS has been producing Barex resins since 2005, after it acquired its Innovene business from BP.
Financial details have not been disclosed by both the companies, but the transaction is expected to complete in the third quarter of this year.
MSM Poly produces acrylonitrile methyl acrylate copolymer latex (AMAC) for the global packaging industry.
MSM Poly CEO Patrick Mickle said: “A core group of pharma packaging and other companies approached us through the consultancy Montesino Associates to seek an alternate, ongoing supply of acrylonitrile methyl acrylate copolymer latex (AMAC) following INEOS’s announcement in late-2014 of their plans to discontinue production of their AMAC formulation marketed under the trade name of Barex. We formed for that purpose and are moving rapidly to commercial production.”
INEOS is a global manufacturer of petrochemicals, specialty chemicals and oil products and it has 18 businesses with over 65 manufacturing sites in 16 countries.
INEOS Barex, based in Switzerland and wholly owned by INEOS, is the parent of INEOS Barex USA, which currently manages the Barex production site.