Houston-based chemical and plastics firm LyondellBasell Industries said on Friday it had signed “definitive agreements” with a Chinese refiner on a $2.6 billion joint venture to produce petrochemicals in northeast China’s Liaoning province.
LyondellBasell will take a 50% stake alongside Liaoning Bora Enterprise Group, one of a number of independent Chinese oil refiners known as “teapots”. The joint venture will operate a 1.1 million tonnes per year ethylene cracker and polyolefin derivatives complex in the coastal city of Panjin.
The estimated $2.6 billion cost marks the biggest investment yet in petrochemicals by a Chinese “teapot” looking to diversify away from the saturated local fuel market.
“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 said in a statement.
The project is expected to start up in the second half of 2020, it added.
The two companies had signed a memorandum of understanding to form the joint venture six months ago, when they touted total investment of up to $12 billion over 10 years.
By Tom Daly
Trinseo (NYSE: TSE), a specialty material solutions provider, announced it has initiated an information and consultation process with the Works Council of Trinseo Deutschland GmbH regarding the potential closure of its styrene monomer production site in Boehlen, Germany.
H.B. Fuller Company announced that Celeste Mastin, Executive Vice President and Chief Operating Officer, will succeed Jim Owens as H.B. Fuller’s President and Chief Executive Officer, effective December 4, 2022. Upon assuming the role, Mastin will also join the Company’s Board of Directors, replacing Owens, who will be retiring.
New LyondellBasell CEO Peter Vanacker, who joined the company from Neste in May, today named his senior executive team and outlined organizational changes, including creation of a circular and low-carbon solutions business. All changes will be effective 1 October.