LyondellBasell and China's Liaoning Bora Enterprise Group (Bora) announced the establishment and start-up of their new joint venture polyolefin complex in the Liaoning province of northeastern China. First announced in September 2019, the 50:50 joint venture (JV) will operate under the name Bora LyondellBasell Petrochemical Co. Ltd. (BLYB).
"Demand for polyolefins has returned in China after the pandemic-related economic slowdown earlier in the year and the long-term growth trends are very favorable for this project," said Bob Patel, CEO of LyondellBasell. "Our BLYB joint venture brings together the best of both LyondellBasell and Bora, leveraging the companies' knowledge and experience to help to meet the growing demand for polyolefin products in China. We look forward to potential future opportunities that would allow us to expand our local manufacturing footprint."
The two parties are planning medium-to-long term collaboration on additional petrochemical projects that could be deployed in multiple phases over the next 10 years.
"The Northeast is on the forefront of China's next round of regional revitalization. It is an increasingly attractive destination for investment, blessed with abundant natural resources, upgraded infrastructure, and a rapidly improving business environment, supported by the government's long-term development vision," said Qu Baoxue, the controlling shareholder of Bora. "We are excited to work with LyondellBasell through BLYB to better serve our customers' needs, support the development of China's petrochemical industry, and contribute to the revitalization of northeastern China."
The BLYB complex is one of the world's most advanced polyolefins production sites and is one of the largest of its kind in China. The facility includes a 1.1 million metric ton per annum flexible naphtha / LPG cracker and associated polyethylene production capacity of 800,000 metric tons per annum and 600,000 metric tons per annum of polypropylene. The BLYB complex utilizes LyondellBasell's industry-leading Spheripol and Spherizone polypropylene technologies along with the company's Hostalen ACP polyethylene technology. The materials produced at the facility will be sold for use within China.
"We are very proud of the new joint venture and this facility. It will play a critical role in efficiently providing high-performance materials to existing and new customers through our four hubs across China," said Limin Fu, Chairman of the Board of BLYB. "The complex will supply polyolefin products for various industries in China, including packaging, transportation, building and construction, and healthcare and hygiene."