Global petrochemicals leader LyondellBasell Industries will operate a major production unit in China through a partnership with a local firm.
LBI — based in Rotterdam and Houston — will form the JV with Liaoning Bora Enterprise Group (Bora). Together, LBI and Bora will operate an ethylene cracker and downstream polyethylene and polypropylene resin units in Panjin, China. Hong Kong-based Bora began building the plant earlier this year.
Officials said in a 5 Sept news release that materials made at the JV site will be used in multiple products, including pipe, durable plastic containers, petroleum fuel tanks and agricultural films. PE and PP resins made at the complex will be marketed by LBI.
Chinese media reports estimated the cost of the project and others to be built by the JV in the next decade to be $12bn (€10.8bn). Local reports said the JV would be split 50-50 between the two firms.
"China is the largest, fastest growing market in the world for our core products," LBI CEO Bob Patel said in the release. "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."
LBI currently operates three polypropylene compounding plants in China. Those units are in Guangzhou, Suzhou and Dalian.