Dec 23, 2019, 09:44 EST
Dec 23, 2019, 09:44 /Comserve / -- The company plans to manufacture styrene monomer and propylene oxide as a part of this joint venture in China
LyondellBasell, a leading company that is involved in the manufacturing of plastics and chemicals as well as refining, announced that it signed a Memorandum of Understanding (MoU) with the China Petroleum & Chemical Corporation (Sinopec) for the creation of a 50:50 joint venture. Sinopec is one of the biggest integrated energy and chemical companies in China.
Under this contract, the joint venture will be constructing a new unit for propylene oxide (PO) and styrene monomer (SM) development in Zhenhai, Ningbo, China. After the finalization of this deal, the venture will be built in the same location as Ningbo ZRCC Lyondell Chemical Company Limited, which is the existing joint venture of the two companies.
As per the CEO of LyondellBasell, Bob Patel, the growing demand for construction and packaging materials is anticipated to create an opportunity for bringing together LyondellBasell’s innovative technology along with Sinopec’s operational abilities.
The new unit is expected to produce around 300 kilo tons of propylene oxide per year and about 600 kilo tons of styrene monomer annually. The construction of the new facility will start in early 2020 and it will become operational in 2022.
LyondellBasell is a major company for plastics, chemicals and refining that produces materials and other products that provide solutions to various challenges such as improving food safety through better packaging, ensuring fuel efficiency of various cars and trucks and protecting water supply purity through light and flexible pipes. The company sells products and materials in over 100 countries apart from being the world’s largest producer of polymers.
For more information, please contact:Jackie Hurtado
News Updates on Industries
The transaction between the two companies is expected to wind-up by the end of first quarter of 2020
The sales witnessed a significant increase from USD 493 million in 2nd Quarter of FY19 to USD 561 mi