China: Polypropylene Lyondell Basell Enters into 50:50 JV with Liaoning Bora
With an aim to expand its presence in the China market, Lyondell Basell has signed definitive agreements with Liaoning Bora Enterprise Group. Under the terms of the agreement, the joint venture will produce polypropylene and high-density polyethylene in the Asian country.
Rotterdam/The Netherlands – Lyondell Basell has recently announced that 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, Lyondell Basell 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 Lyondell Basell. "The combination of Lyondell Basell'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 Lyondell Basell Petrochemical Co., that will operate a 1.1 million metric tonnes per annum ethylene cracker and associated polyolefin derivatives complex in Panjin, China, with a total expected cost of approximately 2.6 billion dollars. 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.
Lyondell Basell will market the polypropylene and high-density polyethylene which will be produced utilising Lyondell Basell 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 per cent of the Asian polyolefins market and represents 40 per cent of global growth. Olefins and polyolefins are core products of Lyondell Basell.
Lyondell Basell 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.