INEOS to discontinue Wilhelmshaven cracker project
INEOS has reluctantly decided that it will suspend all further work on the planned investment in a new ethane cracker at the Wilhelmshaven site, Germany, following recent discussions between Statoil, E.ON Ruhrgas and INEOS on this investment project.
Increasing capital costs of well over 30% in the last twelve months alone have made the project, in its current form, economically unviable.
INEOS recognises the support given by the City of Wilhelmshaven, the Government of Lower Saxony and the Federal Government to the Wilhelmshaven expansion plan, and the Company remains committed to investing in its operations in the region, but this cannot be achieved at any cost. The decision that has been made recognises the significant impact of higher capital costs on the viability of this particular project.
"This is clearly a disappointing outcome for INEOS, the City of Wilhelmshaven and the State of Lower Saxony," said INEOS Chairman Jim Ratcliffe. "All parties have invested considerable resources developing their projects since the original agreement between the three companies was made in August 2005. It is unfortunate that the recent increase in project related material and labour costs has had such a significant impact on the project economics that it became unsustainable."
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