INEOS Enterprises, a British producer of intermediate chemicals, has completed the acquisition of Eramet Titanium & Iron (ETI), a pig iron and titanium dioxide clinker plant in Tyssedal, Norway, from Eramet for $245m.

The agreement, which has come into effect immediately, was finalised upon meeting regulatory approval requirements. It follows the receipt of the unilateral offer from INEOS Enterprises to Eramet in late July 2023 for the acquisition of 100% of the shares in Eramet Titanium & Iron.

Eramet Titanium & Iron comprises an ilmenite transformation facility, that produces titanium slag for the pigments industry. Additionally, it manufactures high-purity pig iron, a product sold to European foundries.

The business entity will now operate under the name INEOS Tyssedal.

Furthermore, the agreement between Eramet and INEOS Enterprises encompasses a long-term supply contract for ilmenite sourced from Grande Côte Opérations (GCO), a subsidiary of the former, which operates a mineral sands mine in Senegal.

Eramet said that the deal bolsters its balance sheet and will provide funding support for its projects related to metals crucial for the energy transition.

INEOS Enterprises CEO Ashley Reed said: “We are very pleased to acquire ETI from Eramet. This is a good quality asset, complemented by an experienced operations team.

“We believe the next phase of ETI’s development can be well progressed under INEOS ownership and further improve the long-term sustainability of the company.”

Eramet Titanium & Iron has been in production since 1986, employing an advanced process that involves smelting ilmenite to create titanium slag and high-purity pig iron. The plant stands as the only facility in Europe that uses this method and is one of only eight such plants globally located outside of China.

The production process at the plant consists of two stages, which include prereduction in a rotary kiln followed by smelting in an electric furnace.