The companies will jointly build a new propylene oxide (PO) and styrene monomer (SM) unit in Zhenhai, Ningbo, China to serve the country's domestic market
The facility will use LyondellBasell's PO / SM technology. Credit: Pixabay/Gerd Altmann.
Netherlands-based chemicals company LyondellBasel has signed a Memorandum of Understanding (MoU) agreement to form a 50:50 joint venture (JV) with China Petroleum & Chemical Corporation (Sinopec).
Under the MoU, the companies will jointly build a new propylene oxide (PO) and styrene monomer (SM) unit in Zhenhai, Ningbo, China to serve the country’s domestic market.
Subject to finalisation, the joint venture will build upon the existing LyondellBasell-Sinopec PO/SM joint venture in the same location. The existing JV is operating under the name Ningbo ZRCC Lyondell Chemical.
LyondellBasell CEO Bob Patel said: “Joint ventures in strategic regions are an important part of our growth strategy.
“As demand for construction materials, packaging and furnishings continues to grow, we see an opportunity to bring together our leading technology with Sinopec’s operational capabilities to further serve the Chinese market.”
The new facility will use PO / SM technology of LyondellBasell
Scheduled to begin construction in early 2020, the new facility is expected to produce 300,000 tonnes of PO per year and 600,000 tonnes of SM per year.
The facility will use LyondellBasell’s PO / SM technology and is expected to commence operations in 2022.
LyondellBasell executive vice president Torkel Rhenman said: “The formation of this JV with Sinopec, a highly respected Chinese company and an existing PO / SM partner, allows us to take advantage of the fastest growing market in the world for these products.
“We see tremendous opportunity to create additional value and grow the presence of LyondellBasell in this very important market.”
In October this year, LyondellBasell has announced the construction of a new small-scale molecular recycling facility in Ferrara, Italy, in an effort to combat the global plastic waste.
The company operates five wholly-owned facilities in China which are located in Guangzhou, Suzhou, Dalian, Dongguan and Changshu.
Additionally, LyondellBasell is currently building the next generation PO / tertiary butyl alcohol (TBA) plant near Houston, Texas.