LyondellBasell, Sinopec To Form JV In China For Propylene Oxide, Styrene Monomer

(RTTNews) - LyondellBasell (LYB), a plastics, chemicals and refining company, late Monday announced that it has signed a Memorandum of Understanding or MoU with China Petroleum & Chemical Corp. or Sinopec to form a 50:50 joint venture in China.

Under the non-binding MoU, the JV will construct a new propylene oxide or PO and styrene monomer or SM unit in Zhenhai, Ningbo, China. Once finalized, the JV will build upon the existing LyondellBasell / Sinopec PO / SM joint venture in the same location, which operates under the name Ningbo ZRCC Lyondell Chemical Company Limited.

The new facility is expected to produce 300 kilo tons per annum or KTA of PO and 600 KTA of SM. Construction of the facility will begin in early 2020 with start-up expected in 2022.

The facility will use LyondellBasell's leading PO / SM technology. Products produced will be marketed equally by both companies.

LyondellBasell operates five wholly-owned facilities in China.In addition, LyondellBasell is currently building the largest next generation PO / tertiary butyl alcohol (TBA) plant in the world near Houston, Texas.