INEOS SWOT and PESTLE Analysis

Strength

1. World’s leading chemical company: INEOS has not only become a major producer of chemicals and petroleum products after 20 years of investment and innovation, but also a company dedicated to the circular economy, addressing plastic waste, applying best practices and ensuring the well-being and potential of generations to come. INEOS has expanded rapidly through emerging technology, processes and alliances, purchasing unloved companies, constructing world-scale facilities and rejuvenating existing assets. In recent years, it has made ambitious strides beyond its traditional markets, breaking into the automobile industry, leading major sports teams and fostering young talent to fulfill its potential. The conviction, determination and strong team ethics of INEOS has proven a winning formula and remains the foundation of going forward with its plan. With plans to create one of its own, INEOS is gradually complementing its habit of purchasing chemical assets from big companies.

2. Diversified product portfolio with a wide range of end market applications: With a large variety of end-market applications, INEOS has a diversified product portfolio. The Chemical Intermediates companies deliver earnings power worldwide with leading global positions and various business cycles. INEOS boasts of a varied range of product offerings, some of them have been listed below. The company works with customers to help them with enhanced adhesive products, they also involved in the manufacturing of agrochemicals.
INEOS is a leading producer of advanced bioenergy technology and biodiesel. Their chemical products help contribute to sustainable development, improve health and enhance standards of living. The company also has its wings in construction materials and packaging, providing innovative products meeting the customer’s packaging needs. They also serve as Intermediates to diverse food applications and are into manufacturing of essential products, drug delivery systems and pharmaceutical packaging. Additionally, INEOS supplies a diverse range of products in the Home & Electronics market and is always keen to help textile manufactures to achieve special needs of an ever-changing market.

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Weakness

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Opportunity

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Threat

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Political

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Economic

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Social

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Technological

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Legal

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Environmental

1. Changes in environmental legislation and the company’s activities: The businesses of INEOS are subject to a wide range of HSSE laws and regulations. These standards regulate their facilities and activities, including the manufacture, storage, processing, treatment, transport and disposal of hazardous substances and waste, discharge of waste water, air pollution (including GHG emissions), noise emissions, landfill activity and closure, human health and protection, safety and risk management of processes, and polluted site clean-up.
Many of the company’s activities require emission monitoring or prevention permits and controls, and these permits are subject to adjustment, renewal and revocation by the issuing authorities. In order to ensure compliance with current and future HSSE rules, regulations and permits or implementation of such conditions, INEOS have incurred, and will continue to incur, considerable ongoing capital and operational expenses.
With annual industrial water costs of approximately EUR 60 million in 2019, the activities of INEOS require substantial water use. Changes in environmental legislation and other factors, such as water shortages as a result of climate change, may raise water prices, which in turn will have an effect on the cost of the company’s operations and development.

2. INEOS compliance with air and climate change regulations: The European Union Emissions Trading Scheme ('EU ETS'), an EU-wide trading system for industrial GHG emissions, covers INEOS activities in Europe. For every ton of carbon dioxide emitted, industrial sites earn or buy allowances to emit GHGs and must surrender one allowance. Excess allowances which be sold by businesses that emit less GHG than their allowances cover, while those that emit more must purchase additional allowances through the EU ETS.
The company's activities are also expected to comply with IEDs, which publish new decisions on a regular basis aimed at reducing air and water pollution from all chemical sites. INEOS is actively interested in the process of discussing these regulations in order to protect their interests and to better predict the need for capital expenditure that may be necessary to comply with these new rules.
The federal Clean Air Act ('CAA') regulates air pollution from different sources in the United States and includes, among other items, regulation of identified contaminants, including dangerous air pollutants, strict air emission limits and technical controls to minimize air emissions.

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