Naphtachimie mulls C2 Lavera expansion in 2006

06 April 1999 16:30  [Source: ICIS news]

LONDON (CNI)--Naphtachimie, the 50:50 joint venture between BP Amoco Chemicals and Elf Atochem, is considering expanding its 700 000 tonne/year ethylene cracker at Lavera, southern France to 1m tonne/year in 2006, a spokesman for BP Amoco confirmed to CNI on Tuesday.

"Lavera needs a worldscale cracker to be competitive compared with other sites," he said. Naphtachimie originally considered an expansion of 350 000 tonne/year at Lavera for 2001, but this was drastically cut to 20 000 tonne/year due to reduced ethylene demand. The 20 000 tonne/year expansion will be carried out during a maintenance shutdown in March 2001.

A decision on the further expansion to 1m tonne/year needs to be made within the next three years, said the spokesman. The extra capacity of about 280 000 tonne/year would come onstream following a turnaround in 2006, and would be used on-site or sold to third parties, he said. "We have to look for new ethylene usage."

BP Amoco confirmed it is also currently in talks with Atochem to decide the future of their 49:51 Appryl polypropylene (PP) joint venture, which has a 260 000 tonne/year plant at Lavera. A decision is expected by June, according to the BP Amoco spokesman. One option is the formation of a new joint venture between the two companies that increases BP Amoco's stake - perhaps to 50%, he said. It is unlikely that BP Amoco would to gain more than 50% because Atochem is unlikely to accept a minority stake, he added.

BP Amoco also revealed plans to cut 99 jobs at Lavera over the next two years as part of the previously announced 3000 job cuts across the group's global operations. Most of the job cuts at Lavera will be in the research centre and engineering department, said the spokesman. BP Amoco currently employs about 620 people at Lavera.

Possible expansions of BP Amoco's polyethylene (PE), ethylene oxide (EO) and polyisobutene (PIB) plants at Lavera remain under review, the spokesman said.

By: Anna Williams
+44 208 652 3214

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