WASHINGTON (dpa-AFX) - LyondellBasell (LYB) said it signed definitive agreements to expand in China through a 50:50 joint venture with the Liaoning Bora Enterprise Group.
As per the deals, the companies will form a Sino-foreign joint venture, the Bora LyondellBasell Petrochemical Co. Ltd, that will operate a 1.1 million metric tons per annum ethylene cracker and associated polyolefin derivatives complex in Panjin, China, with a total expected cost of about $2.6 billion.
The complex will produce products that serve the growing demands of various industries in China, including packaging, transportation, building and construction, and healthcare and hygiene.
LyondellBasell will market the polypropylene and high-density polyethylene which will be produced utilizing LyondellBasell licensed Spheripol, Spherizone polypropylene technologies and Hostalen ACP polyethylene technology. Start-up is expected in the second half of 2020.
LyondellBasell expects to make its equity contribution in the coming months. The formation of the JV is subject to approvals by relevant government authorities.
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