LyondellBasell subsidiary to halt LDPE production at Pasadena by year end

30-Jun-08

A LyondellBasell subsidiary - Equistar Chemicals, LP will halt production of low density polyethylene (LDPE) at its Pasadena, Texas, by the end of the year. Production will shift from the tubular process unit to other site, after an extensive review, that the unit was no longer financially viable. High operating costs at the site and unfavorable market economics have led to inadequate financial returns. As market conditions in North America get more challenging, persistent growth requires economies of scale, low conversion costs and the ability to produce value-added products. The Pasadena LDPE unit is operated for Equistar by Sunoco. Equistar owns and operates three other LDPE facilities in North America in Clinton, Iowa; La Porte, Texas; and Morris, Ill. LyondellBasell Industries also owns a refinery and three other facilities that produce chemicals and polyolefins in Pasadena.