CMAI Outlines INEOS Strategic Business Position

Chemical Market Associates, Inc. logo. (PRNewsFoto/Chemical Market Associates, Inc.)

HOUSTON, TX UNITED STATES

CMAI Outlines INEOS Strategic Business Position. (PRNewsFoto/Chemical Market Associates, Inc.)

HOUSTON, TX UNITED STATES

Houston /PRNewswire/ -- Chemical Market Associates, Inc. (CMAI): CMAI's Chemical Company Analysis (CCA) on INEOS, the second company report of the 2009 Edition, is now available. The report features comprehensive overviews of the chemical businesses of INEOS, including strategic direction and corporate structure; global chemical operations, and business positions of INEOS and its competitors within major product markets; manufacturing site flowcharts and descriptions; as well as vertical product integration and market exposure. An added feature of this report is CMAI's financial performance analysis that provides an indication of the direction and magnitude of the company's revenue and cash margin for petrochemicals.

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The report aims at providing clients with a thorough understanding of not only the present situation, but also the impact of future developments by assessing INEOS' opportunities and risks within the framework of CMAI's outlook for the global petrochemical industry. Rapidly changing industry structure and dynamics will necessitate company-specific responses that will determine the success of chemical producers in the future.

INEOS started in 1998 as a management buyout of the Antwerp, Belgium ethylene oxide and derivatives business from the Inspec Group. From these humble beginnings, INEOS expanded rapidly, primarily through acquisition, to become one of the world's largest chemical companies. Today, INEOS ranks among the ten largest chemical producers worldwide with revenues of $42.5 billion (in 2008), 15,500 employees and 64 manufacturing sites in 14 countries.

INEOS debt-financed acquisition strategy seems to have come to a halt with the onset of the severe global recession in the fall of 2008. The dramatic deterioration in global petrochemical profitability has forced INEOS to introduce far-reaching changes in their strategic business planning, as reflected in their 2009 operating budget: With revenues now projected at only 15.2 billion Euros (US $20 billion) and a Replacement Cost (RC) EBITDA of 1.1 billion Euros (US $1.45 billion), targets include fixed cost savings of 200 million Euros and a 60 percent reduction in capital expenditures. Although no major divestments have been announced, INEOS will likely be postponing a number of future capital projects.

The Chemical Company Analysis (CCA) is a planning advisory service aimed at analyzing the structure, dynamics, competition and strategic issues of global and regional chemical industry participants. The 2009 Edition includes company reports on LyondellBasell Industries, INEOS, Nova Chemicals, Sumitomo Chemical, Sasol and SABIC.

CMAI is the premier provider of Market, Planning and Business Advisory services offering a unique combination of consulting analytics and expertise for the global chemical, plastics, fibers and chlor-alkali industries. With offices in Houston, New York, London, Dubai, Dusseldorf, Singapore and Shanghai, CMAI has provided expert advisory services to a broad base of companies across multiple value chains and geographies since 1979. Clients to CMAI services include chemical and oil companies, technology & EPC companies, banking and financial institutions, plastic converters, textile & apparel manufacturers, brand-owners, grocers/retailers, government agencies and trading companies.

For additional information on this analysis, visit CMAI's website at www.cmaiglobal.com or contact

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RICK CORNELIUS

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SOURCE Chemical Market Associates, Inc.