Houston petrochemical maker LyondellBasell is starting a new joint venture to build a US$2.5 bln petrochemical and plastics complex in China. The 50-50 partnership is with the Liaoning Bora Enterprise Group to create a range of plastics in the northeastern Chinese city Panjin. This new complex in Panjin will include a 1.1 million ton ethylene cracker and manufacture 800,000 tpa of polyethylene, 600,000 tpa polypropylene and 350,000 tpa of styrene. The joint venture could invest up to US$12 billion over 10 years through additional phases. Liaoning Bora has already started construction and the project is expected to be completed by the end of 2020.
"China is the largest, fastest-growing market in the world for our core products," said LyondellBasell Chief Executive Bob Patel. "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."