Ineos ends Wilhelmshaven cracker project

Ineos is suspending all further work on a new ethane cracker that it was planning to build at Wilhelsmshaven in northern Germany. The project, to be fed by gas from a Statoil separation unit, also included a membrane chlorine cell room and major uprates to the existing VCM and PVC plants at the site.

The UK company says that a rise of well over 30% in the capital cost of the project over the past year alone has made it economically unviable.

Ineos and partners Statoil and E.On Ruhrgas had formalised the plans in 2005 for the former ICI and EVC site, acquired by Ineos in 2001.

“This is clearly a disappointing outcome for Ineos, the city of Wilhelmshaven and state of lower Saxony,” said Jim Ratcliffe, chairman and ceo of Ineos. “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.”