On January 26, Sinopec and LyondellBasell announced the signing of a joint venture agreement to establish a 50:50 joint venture company to expand the production of propylene oxide (PO) and styrene (SM) in China. The joint venture will be named Ningbo Zhenhai Refining & Chemical Co., Ltd. Lyondell Basel New Materials Co., Ltd.
The two parties first announced the signing of a memorandum of cooperation in December 2019. According to the memorandum of understanding, the proposed joint venture will build a new propylene oxide (PO) and styrene monomer (SM) plant in Zhenhai, Ningbo, China to meet domestic market demand.
The device adopts LyondellBasell’s PO/SM technology and can produce 275,000 tons of propylene oxide and 600,000 tons of styrene per year. It is expected to be completed and started up by the end of 2021. After completion, the products of the joint venture will be underwritten by both parties on an equal footing, which will greatly expand their participation in China's propylene oxide and styrene markets. After review and approval by relevant government departments including anti-monopoly investigations, the joint venture company will be formally established.
According to data, Lyondell Basel’s predecessor, Basel, was a joint venture established by BASF and Shell in 2000 when they merged their polyolefin business. It was separated from the two companies in 2005 and operated independently. In 2007, Basel spent US$19 billion to acquire Lyonder Corporation of the United States and changed its name to Lyonder Basel. Its main business involves basic chemicals and oil refining. It is the world’s largest producer of polypropylene and propylene oxide and a global leader in polyethylene, Oxidized fuel producer.
