China: Engineering Lyondell Basell Enters into 50:50 JV with Liaoning Bora
Under the MOU, Lyondell Basell and Bora will form a 50:50 JV in China. The new JV will also operate a 1.1 million tonne ethylene cracker which is expected to produce olefins & polyolefins in order to expand Lyondell Basell’s participation in the rapidly growing Chinese olefins & polyolefins market.
Hong Kong/China – Lyondell Basell, one of the largest plastics, chemicals and refining companies in the world has recently 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 Lyondell Basell. “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 utilise Lyondell Basell technologies and significantly expand the company’s participation in the rapidly growing Chinese olefins & polyolefins. According to IHS Markit, China makes up more than 60 per cent of the Asian chemicals market and represents 40 per cent of global chemicals growth over the next decade. Olefins and polyolefins are core products for Lyondell Basell.
Lyondell Basell currently operates three polypropylene compounding facilities in China. These facilities are located in Guangzhou, Suzhou and Dalian.
Under the MOU, Bora and Lyondell Basell will form a 50 / 50 joint venture in Panjin, China. The JV will operate a 1.1 million tonne ethylene cracker which will produce olefins & polyolefins used in all manner of construction and consumer products including, but not limited to, pipe, durable plastic containers, petroleum fuel tanks and agricultural films. The polyolefin products produced at the complex will be marketed by Lyondell Basell.
When complete, the plant will employ Lyondell Basell’s Hostalen ACP polyethylene technology and both Spheripol and Spherizone polypropylene technologies. Bora began construction of the state-of-the-art facility in 2019.