US-based low viscosity polyalpha olefins producer INEOS Oligomers has announced its plans to build a new alpha olefins unit in the country.

The company is planning to build the linear alpha olefin (LAO) unit with an initial capacity of 350,000 metric tons and a design to further expand it by another 50% in future so that it can finally have a capacity of 500,000 metric tons.

INEOS Oligomers CEO Bob Learman said the company has plans to construct the new LAO unit on the Gulf Coast of the US.

"INEOS Group already has a significant footprint on the Gulf so we have ready access to key resources," Learman added.

"We have been working on this project for the past year and it is now ready to scale up for a new phase of activity."

The LAO project is scheduled for completion by the end of 2016.

Expansion of the LAO capacity is expected to provide additional feedstock supply for the company’s Polyalphaolefin (PAO) business growth.

INEOS Oligomers business director Joe Walton said, "We believe our market and technology focus on Polyethylene comonomers and PAO, combined with our access to advantaged ethylene economics, makes for a very attractive opportunity."

The company is also considering the expansion of LAO unit in Joffre, Alberta, Canada by 50%.

INEOS Oligomers operations director Karel Brabant said the company has numerous opportunities to access additional capacity in capital efficient ways.

"The first step of this program is well underway with a project that will expand the unit’s capacity by 10%," Brabant added.

The expansion project in Canada is set to be completed by the end of first quarter 2014.