LyondellBasell will continue production of high density polyethylene (HDPE) at its Chocolate Bayou plant near Alvin, Texas up to Sept. 30, 2009. The company had previously announced that production would cease by July 31. Extending operations of Chocolate Bayou by up to two months will provide additional time for LyondellBasell to transition customers to other manufacturing plants.
The Chocolate Bayou plant has a nameplate capacity of 480 mln pounds per year of HDPE. LyondellBasell has closed multiple manufacturing operations and offices worldwide as part of a global program to reduce costs and improve efficiencies.
Meanwhile, the company will increase prices of all its polyethylene grades in Europe by EUR 120/ton effective July 1, 2009. The price hike was 'necessary' due to surging raw material costs, the company said.