LYONDELLBASELL has signed a memorandum of understanding for a joint venture with Liaoning Bora Enterprise Group to expand its business in China.
LyondellBasell currently has polypropylene compounding facilities in Guangzhou, Suzhou and Dalian and the JV will expand its participation in China’s olefins and polyolefins markets. Construction has already begun on the plant in Panjin as part of the 50/50 JV. The facility will have a 1.1m t/y ethylene cracker, along with two polypropylene units and a polyethylene plant.
“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.”
China makes up 60% of Asia’s chemicals market, according to IHS Markit, and represents 40% of global chemicals growth over the next ten years.
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