London +4420 814 42225
Moscow +7495 543 9194
Kiev +38044 599 2950
info@mrcplast.com

Our Clients

Order Informer

 
Home > News >
 

LyondellBasell and Bora sign definitive agreements to form Chinese JV

March 11/2020

MOSCOW (MRC) -- LyondellBasell (LBI), one of the largest plastics, chemicals and refining companies in the world, has announced it has signed definitive agreements to expand in China through a 50:50 joint venture with the Liaoning Bora Enterprise Group (Bora), as per LBI's press release.

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 USD2.6 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 (PP) and high-density polyethylene (HDPE) which will be produced utilizing LyondellBasell licensed Spheripol, Spherizone PP 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.

As MRC informed earlier, in January 2020, LyondellBasell announced that Shandong Jinhai Chemical Co., Ltd. would use the LyondellBasell Hostalen "Advanced Cascade Process" (Hostalen ACP) technology for a new facility. The process technology will be used for a 400 KTA HDPE facility to be built in Heze City, Shandong Province, P.R. China.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,093,260 tonnes in 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments rose from both domestic producers and foreign suppliers. The estimated PP consumption in the Russian market was 1,260,400 tonnes in January-December 2019, up by 4% year on year. Supply of almost all grades of propylene polymers increased, except for statistical copolymers of propylene (PP random copolymers).

LyondellBasell is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 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, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies.


mrcplast.com
Author:Margaret Volkova
Tags:PP, PE, PP random copolymer, HDPE, LyondellBasell, China, Russia.
Category:General News
|
| More

Leave a comment

MRC help

 


 All News   News subscribe