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Nouryon and INEOS Nitriles have broken ground on new facilities to be built at INEOS’ Köln site in Germany.
The units will produce raw materials for Nouryon’s high-quality, readily biodegradable chelates, used in detergents and other industries.
The plants are due to be completed in 2021-2022.
Demand for chelates has increased strongly following the European ban on phosphates in consumer automatic dishwasher detergents.
Chelates are more sustainable than the phosphates they replace.
INEOS will operate and maintain the new facilities, as well as provide key raw materials.
"This long-term agreement with INEOS will support the growth of customer demand for readily biodegradable chelates in home and personal care applications such as detergents, which are a key strategic market for us,” said Larry Ryan, Executive Vice President and President of Performance Formulations and the Americas at Nouryon.
INEOS Nitriles is the world’s largest producer of acrylonitrile, a vital raw material for products used in the automotive, home appliance, garment, carbon fibre and water purification sectors.
The agreement is similar to an existing partnership between INEOS and Nouryon at their adjacent facilities in Lima, Ohio, United States.
"Our relationship with Nouryon over the past years has proven to be mutually beneficial.
"We look forward to building on that success and we are proud that the products developed through this expansion in our partnership will lead to a more sustainable industry,” says Hans Casier, CEO of INEOS Nitriles.
The startup of the new facilities will strengthen Nouryon’s global footprint in the supply of readily biodegradable chelates to Asia, Europe and North America.
It follows completion of production facilities at Ningbo, China in 2016 and is the next step to expand Nouryon’s capabilities to meet the needs of its customers in the European market.
"This capacity expansion underlines the company’s strategy of investing in attractive growth markets and its commitment to sustainable growth platforms,” said Nouryon CEO Charlie Shaver.
"It will enable us to better support the future growth plans of our customers.
"They will benefit from our continued efforts to improve global supply chain performance and optimisation, and the ability to produce more sustainable products.”