Amcor reacts to INEOS Barex plant closure

INEOS Barex manufactures a specialized acrylonitrile-methyl acrylate co-polymer (Barex), which has established a strong position within the global packaging industry due to its performance characteristics, such as oxygen barrier protection and chemical resistance combined with strength, impact resistance and processing versatility – it can be readily converted into bottles, blown film, sheet and molded parts. Barex can be processed through traditional extrusion, injection and calendering techniques and is easily thermoformed. Because of its exceptional strength, Barex can also match the stiffness of other resins at reduced thickness, allowing for source reduction as well as lighter packaging.

Barex resins are approved by the US Food and Drug Administration (FDA) for direct food contact and certain non-carbonated, aseptic-filled beverages. Barex is also classified by US Pharmacopeia as a Class VI plastic for medical/pharmaceutical packaging and is listed under FDA Drug Master File No. 2343. Further, Barex is approved in the European Union for direct food contact, beverage use and liquor packaging (up to 50 percent alcohol content).

Containers made with Barex, which can be used in stand-up pouches, sachets, laminates for transdermal patches, wrapping, various bottle applications, unit dose vials and more, keep aromas and essences alive to enhance product integrity and extend shelf-life for food, cosmetics, personal care items and fragrances, INEOS Barex said, with Barex particularly useful in the food and beverage industry where its packaging can enhance shelf-life and significantly improve flavor and aroma retention through reduced oxidation. It also offers resistance to grease, oil, gasoline, aggressive chemicals and solvents, so ensuring strong demand in the agriculture, automotive and industrial chemicals markets.

On October 29, it was announced that the INEOS Barex plant in Lima, Ohio will close in the first quarter of 2015. INEOS also operates acrylonitrile and catalyst plants at the Lima site, with those not impacted by the closure.

David Schmidt, chief executive officer of INEOS Barex, said: ‘We regret having to take the decision to close our Barex plant and wind down the Barex business. The business has been struggling financially for a number of years. We have worked diligently to reduce costs and improve profitability, but have been unsuccessful in turning around the business.

‘We will work with our customers and employees to ensure an orderly closure of the Barex business over the coming months.’

As a result of the news Amcor said its procurement and technical teams are working closely with film converters to secure sufficient volumes of INEOS Barex resin prior to the shutdown. A commitment to build three years worth of stock is already in place, and this stock will be subject to binding customer commitments given by the end of November, with commercial conditions still to be established.

Additionally, Amcor is working with film converters to identify alternative or new sources of resin to enable a long-term supply of equivalent film.

Colin Reed, global pharma marketing director at Amcor Flexibles Europe and Americas, said: ‘Ensuring global security of supply for our customers is Amcor’s key priority. Due to the critical nature of pharmaceutical and medical applications, it is our responsibility to make sure that business continuity is maintained. Our customers can be reassured that, under these exceptional circumstances, we will support them to secure a sustainable supply chain now and into the future.’

Amcor stated that it is sensitive to the critical nature of the applications that use Barex 210 film and, in particular, the complexity of any requalification process. For this reason, since 2012 Amcor has invested heavily to develop an alternative film targeted to have the same inert properties as Barex, improved extractable and sealing properties, and which supports a more sustainable manufacturing process. The industrialization and customer trial process for this film has commenced, and Amcor said that, in addition to securing the current technical offering, it can offer an alternative that removes the dependency on a single manufacturing site.

This film has already undergone favorable initial trials, and Amcor will provide samples of both the film and laminates within the coming weeks. It has advised customers to commence the qualification process with this film, in addition to securing a supply of Barex film. Amcor will contact its customers directly to support them with both activities, and to ensure with them the future sustainable supply of the optimum high-performance film for their applications.