LyondellBasell and Bora Sign Definitive Agreements to form Chinese Joint Venture

 March 5, 2020

 LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, today announced it has signed definitive agreements to expand in China through a 50:50 joint venture with the Liaoning Bora Enterprise Group (Bora). On September 5, 2019, LyondellBasell and Bora first signed a Memorandum of Understanding and announced their intention to form this joint venture during a ceremony in Panjin, China.

"China is a large market with growing demand for high quality polyolefin products," said Bob Patel, CEO of LyondellBasell. "The combination of LyondellBasell's leading technology and Bora's operational excellence will allow us to reliably produce and provide these needed products to local customers."

Under the agreements, the partners will form a Sino-foreign joint venture, the Bora LyondellBasell Petrochemical Co. Ltd, that will operate a 1.1 million metric tons per annum ethylene cracker and associated polyolefin derivatives complex in Panjin, China, with a total expected cost of approximately $2.6 billion. The complex will produce products that serve the growing demands of various industries in China, including packaging, transportation, building and construction, and healthcare and hygiene. 

LyondellBasell will market the polypropylene and high-density polyethylene which will be produced utilizing LyondellBasell licensed Spheripol, Spherizone polypropylene technologies and Hostalen ACP polyethylene technology. Start-up is expected in the second half of 2020. 

According to IHS Markit, Asia is the largest and fastest growing polyolefin market in the world. China accounts for more than 60 percent of the Asian polyolefins market and represents 40 percent of global growth. Olefins and polyolefins are core products of LyondellBasell.

LyondellBasell expects to make its equity contribution in the coming months. The formation of the JV is subject to approvals by relevant government authorities, including antitrust review by the State Administration for Market Regulation.

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