Ineos US offers US$1 mln in cash to LyondellBasell for a Texas HDPE plant

24-Jul-09

Ineos Olefins & Polymers, USA, has offered US$1 mln (€700,000) in cash to LyondellBasell for a 500 million lbs HDPE plant in Chocolate Bayou, Texas. LyondellBasell is to shutter the plant by end of September. Additionally, Ineos will commit to buy ethylene feedstock from LyondellBasell each month until the end of 2010. Ineos also will agree to drop a US$4.5 mln (€3.1 mln) claim for capital recovery costs, as per Ineos officials in a 5 June filing with the US Bankruptcy Court in New York. In recent court filings, Ineos officials claim that they have the option to buy the HDPE plant according to a 1988 agreement between the predecessor companies of both firms as reported in Plasticsnews.