The deal – terms of which were not disclosed – will also see MSM acquire unspecified “physical assets” and commercial and operational support for production of the resin.
Ineos has made the resins – which are modified acrylonitrile methyl acrylate copolymers (AMAC) used to make high barrier drug and food packaging – since 2005 when it acquired BP’s Innovene business for $9bn (€8.1bn).
The resin is produced at Ineos’ plant in Lima, Ohio in the US. In 2014 the Swiss firm said it planned to close the facility in 2015 on the basis it was unprofitable. The facility has continued to operate into 2016.
The closure announcement prompted the acquisition and the formation of MSM, according to CEO Patrick Mickle.
“A core group of pharma packaging and other companies approached us through the consultancy Montesino Associates to seek an alternate, ongoing supply of AMAC…We formed for that purpose and are moving rapidly to commercial production.”
According to Ineos Barex production “will conclude in Q3 of 2016 followed by dismantling of the physical assets.”
Production is likely to transfer to a facility in Greenville, South Carolina which is operated by Tiarco Chemical.
MSM said: “MSM Poly and Tiarco Chemical are in negotiation for long term production of AMAC at the Greenville facility in parallel with current development efforts there.”
The deal is expected to complete in the third quarter of 2016.