Forum News Sheet
Edition 6 - Spring
2006
Below
is the full text version of the Spring 2006 edition
of FORUM.
Welcome
to the Spring edition of "Forum"- the news
sheet for people who live and work close to the INEOS
site at Runcorn - providing local residents with information
about the work of the INEOS Site Community Forum.
INVESTMENT AT RUNCORN SITE
SECURES INEOS FUTURE ...
It has been six months since
the last newsletter and in that time we have had two
meetings with INEOS Chlor, INEOS Enterprises, INEOS
Vinyls and INEOS Fluor. As our first meeting was in
January we wanted to find out how well each of the three
companies had performed in 2005 and although the official
results for each Company had yet to be filed we received
information that gave us a general background.
Each of the companies emphasised the importance of Safety,
Health and Environment and all four were confident about
their future business at Runcorn. As INEOS Chlor and
Fluor are both making large investments in new plants
much of their focus was on progress of both projects;
covered separately over the page.
Each of the companies have, like so much of UK manufacturing
this winter, been hit by extremely high energy prices
and although this has an impact on INEOS Chlor to the
greatest extent, all four companies have seen their
energy costs increase significantly.
With the warmer weather comes the possibility of lower
gas prices but something has to be done before next
Autumn to avoid a repeat of this winter's problems and
INEOS has been very active (see below).
In January we also asked for information from INEOS
as a group. As a Forum we feel it is important that
as well as understanding the companies operating at
Runcorn Site we also need a broader view of the parent
company and its performance.
This year we were to be amazed by the growth of INEOS.
We were told that in October 2005 INEOS had announced
it was going to buy the chemicals arm of BP, known as
Innovene. The purchase was finalised in December and
in a single move INEOS became the world's third largest
chemical company, behind Dow and BASF. The Company now
employs 15,600 people at over 68 sites in 17 countries.
Although INEOS remains privately owned, with Jim Ratcliffe
as its Chairman and main shareholder, if it was to be
traded on the Stock Market it would be number 15 in
the FTSE100 (on sales).
At the April meeting we also discussed how we would
fill two vacant resident representative posts on the
Community Forum for Halton Lea and Heath wards. With
just over a year to run before all representatives have
to be re-elected we hope to be able to fill the posts
quickly.
Over the next few weeks we will be progressing plans
to fill both vacant posts.
Contacting your Community Forum Representative:
The next meeting of the INEOS Site Community Forum is
scheduled for Thursday 13th July 2006. If you are a
local resident and would like to contact your representative
about an issue relating to one or more of the INEOS
companies on Runcorn Site, please call or write to us:
-
Sydney Broxton
- telephone 01928 575648
-
Reg Eastup
- telephone 01928 573656
-
Campbell
Riley - telephone 01928 572223
-
Brian Howells
- telephone 01928 572126
-
John Gilbert
- telephone 01928 576547
-
(Additional
representative to be confirmed)
- Representative
to be confirmed, in the meantime contact 515227
GAS PRICES IMPACT INEOS
AT RUNCORN...
As one of the UK's largest
energy consumers INEOS Chlor has been severely affected
by huge rises in UK gas prices during the winter and
has stated repeatedly to Government that the European
gas market is fundamentally flawed and inadequately
regulated. At the January meeting the Company provided
information about the actions it has taken over the
past eighteen months to tackle the problem. As part
of an update on business performance Paul Daniels of
INEOS Chlor told the Forum that alongside all UK manufacturing
INEOS at Runcorn was suffering significant competitive
disadvantage from rising energy costs.
Paul also confirmed that INEOS Chlor had held a number
of meetings with MPs and senior Government officials
including the Energy Minister, Malcolm Wicks. INEOS
has presented strong evidence to show that the UK gas
markets are not operating effectively and the Company
has also requested a full investigation into the workings
of the European gas market, where customers are paying
much less for their gas than the UK.
In February it seemed that the Government was beginning
to take action as the European Competition Commissioner
stepped up her investigation into the EU Energy sector
in an to attempt create a level playing field on gas
prices.
INEOS FLUOR'S NEW PLANT...
INEOS Fluor's investment in new refrigerants at Rocksavage
has moved forward quickly since the last newsletter.
Project Tiger, as it is known in the Company, provides
a new refrigerant plant at Runcorn. It will also help
the Company to maintain a leading position in the supply
of refrigerants around the world as Ozone Depleting
Substances are replaced.
In January INEOS Fluor explained that work on the new
plant was progressing well and the plant was being commissioned.
By the April meeting the Company was in the final stages
of commissioning and was manufacturing product. The
INEOS Site Community Forum was established in 2002 to
share information and create a dialogue between the
INEOS businesses at Runcorn site (INEOS Fluor, INEOS
Chlor and INEOS Vinyls) and the local community, living
or working close to the Runcorn site.
On the 16th March, Forum members were invited, along
with the Mayor and local councillors, to a celebration
event at Rocksavage, as the Company marked the completion
of the new KLEA 125 plant. Attended by David Price,
INEOS Fluor's CEO, and Tony Kaye the Commercial Director,
the event gave members a good opportunity to see the
new plant first hand and to hear how this new refrigerant
would be of significant value to INEOS and Runcorn Site.
Importantly, the event also gave Forum members the opportunity
to see the plant and to talk directly to some of the
people who operate and maintain it. Representatives
also put forward a range of questions about the performance
of the plant and the company locally.
"It is good to see companies such as INEOS Fluor
operating world class businesses from Runcorn,"
commented Brian Howells, current Forum Chairman. "We
have followed the progress of this project over the
last 2 years and we are delighted to see it producing
the new refrigerant. It is always good to see a big
capital project to come in on time and in budget."
BACKGROUND TO INEOS CHLORVINYLS AND INEOS ENTERPRISES...
In 2005 some of the businesses
previously part of the INEOS Chlor portfolio were moved
to create a new company called INEOS Enterprises. This
company includes the Sulphur Chemicals plants at Runcorn
Site along with the Brine and Water operations at Northwich
and plants in France and Thailand.
INEOS Enterprises also now includes a new salt business
and some new businesses from INEOS' purchase of Innovene.
At the end of 2005 some internal reorganisation of the
INEOS Chlor and INEOS Vinyls businesses took place as
part of a move to align linked businesses and create
a new management structure.
The Chlor and Vinyls businesses merged to become INEOS
ChlorVinyls.
INEOS ENTERPRISES BUYS SALT UNION...
In January INEOS Enterprises briefed the Forum on its
purchase of the Salt Union plant at Weston Point.
On the 5th December INEOS Enterprises completed the
deal and with it took ownership of the white salt plant
at Weston Point and the Direct Salt Distribution business.
In total 90 people transferred into INEOS.
INEOS Enterprises told the Forum that it had acquired
the white salt business because of its close fit with
its existing portfolio, particularly the brine business.
The company also explained that the purchase would contribute
to growing its business at Runcorn and to secure the
long-term future of INEOS Enterprises in the region.
Craig Welsh of INEOS said: "INEOS has an excellent
track record of investing in its Runcorn businesses
to promote growth locally and add value for its customers
nationally."
Salt Union continues to operate its rock salt business
from the Winsford Mine in Cheshire.
SALE OF LAWSON HOUSE...
INEOS was asked at the
January meeting about their plans for Lawson House and
the Company confirmed that a sale has been agreed in
principle. Housing developer, Morris Homes, plans to
redevelop the site for residental use, which includes
the main Lawson House building. INEOS Chlor explained
that Morris Homes had submitted a planning application
to the Council and that a sale would not be completed
unless planning permission had been obtained. Halton
Borough Council and Morris Homes will continue to consult
with residents on their proposals.
GENESIS TAKES SHAPE AT
INEOS CHLOR...
At both the January and April meetings INEOS Chlor
provided members with information on the progress of
its £390 million modernisation programme at Runcorn
Site, known as Genesis. Roger Westwood briefed the Forum
on progress and brought us up to date.
New boiler plant
Since the last update to the Forum all of the new boilers
have now been installed and commissioning work is continuing.
INEOS Chlor is working hard to get the new boiler plant
up and running and has confirmed that it plans to run
the new plant in parallel with Weston Point Power Station
for a period of time to provide a smooth transition.
Project Genesis - new chlorine cellroom
Work continues on INEOS Chlor's new chlorine cellroom,
which will form the heart of the chlorine manufacturing
process at Runcorn Site. As of 11th April work started
on installing the 'cells' that are used to split brine
into chlorine and caustic soda. With the project progressing
well, the Company hopes to be in a position to produce
chlorine by the end of May.
HAVE YOUR SAY…
If you are a local resident
we would like to hear your views. Whether you have a
comment on our newsletter or you have a question that
relates to INEOS at Runcorn site, as your Forum we would
like to hear from you. And we'll pay for postage too.
No need to pay for a stamp - simply put this page into
an envelope, use the FREEPOST address below and drop
it in the post. What could be easier? Your comments
or questions will be passed straight to your Ward representative
who will raise these directly or through the next meeting
on your behalf.
I would like my Forum Representative
to ask the following question/make the following comments:
My address is:
My telephone number is:
Day: ………………………………Night:……………………………..Mobile……………………………
If you prefer e-mail:
My e-mail address is:……………………………………
Send this page in an envelope, addressed to:
Contact your Community Forum
Representative...
In addition to this freepost
address, there are a number of ways you can contact
the group: 1) directly to your representative via the
contact details on the front page, 2) through the website
at www.ineoschlor.com/community 3) by contacting INEOS
Directly on 0800 0521190 .
