Bayer, Lyondell confirm go ahead for new jv PO/SM plant

19 December 2000 12:08  [Source: ICIS news]

LONDON (CNI)--German chemicals giant Bayer and US-based Lyondell confirmed on Tuesday plans to build a wordscale propylene oxide (PO)/styrene monomer (SM) plant at Maasvlakte, Rotterdam.

The plant, which will have an annual production capacity of 285 000 tonne of PO and 640 000 tonne of SM, will be built and operated by a 50:50 joint venture between the two companies.

Scheduled to come onstream in 2003, the plant will cost over Euro500m ($449m), said Bayer. The German group bought Lyondell's polyols business last year and also gained the long-term right to purchase supplies of PO from Lyondell.

Bayer and Lyondell will each take half the new plant's output. A large portion of Lyondell's share of the PO output will supply the butanediol (BDO) plant it is building at Botlek, Rotterdam, which is scheduled for start-up in early 2002.

Hans-Joachim Kaiser, general manager of Bayer's polyurethane (PU) business group, said the new facility would give Bayer long-term access to supplies of low-cost PO - a base product for the production of polyols. Polyols are a key raw material for the production of PU, demand for which is growing at an annual rate of about 4-5%, said Bayer.

Bayer, which is the world's largest supplier of PU raw materials, said its share of the styrene production roughly corresponds to its requirements.

By: Neil Sinclair
+44 20 8652 3214

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