ROTTERDAM,
Netherlands and HONG KONG, March
5, 2020 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of
the largest plastics, chemicals and refining companies in the
world, today announced it has signed definitive agreements to
expand in China through a 50:50
joint venture with the Liaoning Bora Enterprise Group (Bora). On
September 5, 2019, LyondellBasell and
Bora first signed a Memorandum of Understanding and announced their
intention to form this joint venture during a ceremony in Panjin,
China.
"China is a large market with
growing demand for high quality polyolefin products," said
Bob Patel, CEO of LyondellBasell.
"The combination of LyondellBasell's leading technology and Bora's
operational excellence will allow us to reliably produce and
provide these needed products to local customers."
Under the agreements, the partners will form a Sino-foreign
joint venture, the Bora LyondellBasell Petrochemical Co. Ltd, that
will operate a 1.1 million metric tons per annum ethylene cracker
and associated polyolefin derivatives complex in Panjin,
China, with a total expected cost
of approximately $2.6 billion. The
complex will produce products that serve the growing demands of
various industries in China,
including packaging, transportation, building and construction, and
healthcare and hygiene.
LyondellBasell will market the polypropylene and high-density
polyethylene which will be produced utilizing LyondellBasell
licensed Spheripol, Spherizone polypropylene
technologies and Hostalen ACP polyethylene technology.
Start-up is expected in the second half of 2020.
According to IHS Markit, Asia
is the largest and fastest growing polyolefin market in the world.
China accounts for more than 60
percent of the Asian polyolefins market and represents 40 percent
of global growth. Olefins and polyolefins are core products of
LyondellBasell.
LyondellBasell expects to make its equity contribution in the
coming months. The formation of the JV is subject to approvals by
relevant government authorities, including antitrust review by the
State Administration for Market Regulation.
About LyondellBasell
LyondellBasell (NYSE: LYB)
is one of the largest plastics, chemicals and refining companies in
the world. Driven by its employees around the globe, LyondellBasell
produces materials and products that are key to advancing solutions
to modern challenges like enhancing food safety through lightweight
and flexible packaging, protecting the purity of water supplies
through stronger and more versatile pipes, improving the safety,
comfort and fuel efficiency of many of the cars and trucks on the
road, and ensuring the safe and effective functionality in
electronics and appliances. LyondellBasell sells products into more
than 100 countries and is the world's largest producer of polymer
compounds and the largest licensor of polyolefin technologies. In
2020, LyondellBasell was named to Fortune Magazine's list of the
"World's Most Admired Companies" for the third consecutive
year. More information about LyondellBasell can be found
at www.lyondellbasell.com.
Forward-looking Statement
The statements in this
release relating to matters that are not historical facts are
forward-looking statements. These forward-looking statements are
based upon assumptions of management which are believed to be
reasonable at the time made and are subject to significant risks
and uncertainties. Actual results could differ materially from the
projections, anticipated results, or other expectations expressed
in this release, including, but not limited to, our ability to
complete the transactions described and the timing of such
transactions; the successful construction and operation of the
complex described; our ability to obtain all approvals by relevant
government authorities; future demand and the growth of the
global polyolefin market and in the regions described; and general
economic conditions in geographic regions or markets served by
LyondellBasell and its affiliates, or where operations of the
company and its affiliates are located. While these statements and
projections are made in good faith, LyondellBasell and its
management cannot guarantee that anticipated future results will be
achieved. Additional factors that could cause results to differ
materially from those described in the forward-looking statements
can be found in the "Risk Factors" section of our Form 10-K for the
year ended December 31, 2019, which can be found
at www.LyondellBasell.com on the Investor Relations page
and on the Securities and Exchange Commission's website
at www.sec.gov. LyondellBasell assumes no obligation to
publicly update or revise any forward-looking statements made
herein or any other forward-looking statements made, whether as a
result of new information, future events, or otherwise.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/lyondellbasell-and-bora-sign-definitive-agreements-to-form-chinese-joint-venture-301018831.html
SOURCE LyondellBasell