CHINA: LyondellBasell, Sinopec sign MoU to form JV to build new PO & SM unit
LyondellBasell and China Petroleum & Chemical Corp. (Sinopec) have signed a non-binding memorandum of understanding (MoU) to form a 50-50 joint venture for building a new propylene oxide (PO) and styrene monomer (SM) plant in Zhenhai, Ningbo, China. The facility, which will be based on LyondellBasell's PO/SM technology, is expected to produce 300,000 t/y of PO and 600,000 t/y of SM to serve the domestic market.
Construction will begin in early 2020 with start-up anticipated in 2022. Products will be marketed equally by both parties. Once finalized, the joint venture will build upon an existing JV between the two companies in the same location, which operates under the name Ningbo ZRCC Lyondell Chemical Co. Ltd.
"Joint ventures in strategic regions are an important part of our growth strategy," noted LyondellBasell Chief Executive Bob Patel. "As demand for construction materials, packaging and furnishings continues to grow, we see an opportunity to bring together our leading technology with Sinopec's operational capabilities to further serve the Chinese market."
Source: Weekly “PetroChemical News”, Durham, NC, USA; 6 Jan 2020
(Syed Rashid Ali, Karachi, Pakistan)