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LyondellBasell and Sinopec finalize JV to produce PO and SM in China
Source:Adsale Plastics Network    Editor:JK    Date:29.Jan.2021

LyondellBasell and China Petroleum & Chemical Corporation (Sinopec) have announced the signing of an agreement to form a 50:50 joint venture (JV) which will produce propylene oxide (PO) and styrene monomer (SM) in China's domestic market.

 

First announced on December 23, 2019, the JV will operate under the name Ningbo ZRCC LyondellBasell New Material Company Limited.

 

“As China's economy continues to grow, so is the demand for propylene oxide and styrene monomer. We are excited to expand our relationship with Sinopec through this joint venture in order to better serve China's domestic market,” said Torkel Rhenman, Executive Vice President, Intermediates and Derivatives, and Refining.


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LyondellBasell and Sinopec signed an agreement to form JV.


“Built on the remarkable success of our first Joint Venture, we are very delighted to continue to enhance the important partnership with LyondellBasell for future achievements. The establishment of the new Joint Venture is not only in line with the national drive for further opening-up, but also a vital step for Sinopec to deepen and expand our international operations,” expressed Yu Baocai, Senior Vice President of Sinopec Corp.

 

The JV will construct a new PO and SM unit in Zhenhai Ningbo, China. This new unit will have 275 kilotons per annum (KTA) capacity of PO and 600 KTA capacity of SM. The unit will use LyondellBasell's leading PO / SM technology.

 

Products produced by the JV will be marketed equally by both partners and significantly expanding their respective participation in the Chinese market for PO and SM. Startup is expected at the end of 2021.

 

The formation of the JV is subject to approvals by relevant government authorities, including antitrust review by the State Administration for Market Regulation. LyondellBasell expects to make its equity contribution to the JV during the first quarter of 2021.

 

According to IHS Markit, China accounts for more than 60 percent of chemical market demand in Asia and represents 40 percent of global chemical market growth over the next decade. PO and SM are core products of LyondellBasell and are used in a variety of applications including packaging, building and construction, furnishings and transportation.

 

LyondellBasell operates five wholly-owned facilities in China which are located in Guangzhou, Suzhou, Dalian, Dongguan and Changshu.

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