Chemical firm LyondellBasell has signed a Memorandum of Understanding (MoU) to expand in China through a joint venture with the Liaoning Bora Enterprise Group (Bora). Bora and Lyondellbasell 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. It will manufacture 800,000 tonnes/year of PE, 600,000 tonnes/year of PP and 350,000 tonnes/year of styrene, the companies said. The joint venture could invest up to US$12 billion over ten years through additional phases, the companies said.
The polyolefin products produced at the complex will be marketed by LyondellBasell.
Bora began construction of the facility in 2019 and the project is expected to be completed by the end of 2020.
This project will utilise LyondellBasell 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% 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 PP compounding facilities in China. These facilities are located in Guangzhou, Suzhou and Dalian.
When completed, the plant will employ LyondellBasell’s Hostalen ACP PE technology and both Spheripol and Spherizone PP technologies.
“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.”