LyondellBasell, one of the largest plastics, chemicals, and refining companies in the world announced that it has signed a Memorandum of Understanding (MoU) to expand in China through a joint venture (JV) with the Liaoning Bora Enterprise Group (Bora).
“China is the largest, fastest-growing market in the world for our core products,” said Bob Patel, CEO of LyondellBasell. “The formation of this JV with a well-respected Chinese company allows us to increase our flexibility to produce these products closer to the customer. We see tremendous opportunity to create additional value and potentially grow further in this very important market.”
This project will utilize LyondellBasell technologies and significantly expand the company’s participation in the rapidly growing Chinese olefins and polyolefins market. According to industry consultant IHS Markit, China makes up more than 60% of the Asian chemicals market and represents 40% of global chemicals growth over the next decade. Olefins and polyolefins are core products for LyondellBasell.
LyondellBasell currently operates three polypropylene compounding facilities in China. These facilities are located in Guangzhou, Suzhou, and Dalian.
Under the MoU, Bora and Lyondellbasell will form a 50-50 joint venture in Panjin, China. The JV will operate a 1.1 million ton ethylene cracker which will produce olefins and polyolefins used in all manner of construction and consumer products including, but not limited to pipe, durable plastic containers and agricultural films. The polyolefin products produced at the complex will be marketed by LyondellBasell.
When complete, the plant will employ LyondellBasell’s Hostalen ACP polyethylene technology and both Spheripol and Spherizone polypropylene technologies. Bora began construction of the state-of-the-art facility in 2019.