Basell merges PP/PE to complete integration

12 November 2001 00:00  [Source: ICB]

Basell is to merge its polyethylene (PE) and polypropylene (PP) businesses from 1 January 2002, announced Rolf Richter, Basell's chief operating officer polyethylene, speaking at the recent K2001 fair in Düsseldorf. The new market driven entity will be called Polyolefins Volume Business and will operate on a harmonised regional basis in order to present, 'one face to the customer and serve multi-product customers in a seamless fashion', says Basell. 'The new organisation will ensure maximum focus on customers and the market and also reduce complexity internally,' said Richter.

'The supply chains of PP and PE will be linked to standardise procedures and response times, which will enable us to complete the integration of Elenac, Montell and Targor organisations and systems' confirmed the Basell executive.

Within the new organisation, there will be a change in leadership roles. Kees Linse will be responsible for the Value and Ideas business and Rolf Richter will lead the Volume business. The company says it it improving the focus of the organisation and providing differentiated value propositions and solutions for each market segment.

Commenting on key Volume investments, Richter highlighted the 225 000 tonne/year PP plant being built in Tarragona, Spain, due to start up in 2003. He also cited the 300 000 tonne/year PP plant being built in a joint venture with Polibrasil, due up in 2003, and the manufacturing joint venture with Saudi Polyolefins to construct a 450 000 tonne/year PP plant and propane dehydrogenation unit, both due to start-up in 2003. Basell will also commission a 320 000 tonne/year hdPE unit at Wesseling in Germany in quarter three 2003.

• Meanwhile, in response to deteriorating market conditions leading European PP producers have announced another round of cutbacks. Basell confirms it will lower output by 45 000 tonne in November and December. Borealis will reduce output at its 150 000 tonne/year plant at Porvoo in Finland by 20-25% until the year end. BP has also talked of lowering PP output, in response to market conditions. Overall European PP demand growth is expected to drop to 3% this year.

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