LyondellBasell plans to expand Argentina PP output

24 June 2008 08:34  [Source: ICIS news]

BUENOS AIRES (ICIS news)--LyondellBasell Industries plans to increase its polypropylene (PP) production capacity in Argentina, a company source said.

 

“LyondellBasell will expand its PP compounding plant in Ensenada - located in Buenos Aires - by nearly 50% over the current 20,000 tonnes/year of advanced polyolefins, during 2009,” Mark Mendelson, head of business communications at LyondellBasell, told ICIS news late on Monday.

 

“The added capacity will serve the growing needs of the automotive and appliance markets in the region,” he added.  

 

The company operates in the Argentinean market under the name of Petroken PE and it is currently the main local producer of polypropylene, with an annual output of 180,000 tonnes.

 

This expansion was occurring in the context of high demand for PP in Latin American, analysts said.

 

Argentina consumed 229,120 tonnes of PP in 2007, according to Argentina's Plastics Industry Association (CAIP).

 

LyondellBasell’s expansion in Argentina was part of a larger plan aimed at boosting its PP production by 30% worldwide by the end of 2009, in order to supply the growing demand for this product in the Asian market, the company added.

 

This meant the company would reach a compounding capacity of 1.2m tonnes/year worldwide by the end of 2009, it said.

 

The main competitor for LyondellBasell in the Argentinean market for PP is the local Petroquimica Cuyo, which produces 130,000 tonnes/year of PP.

 

The Brazilian Braskem is also becoming an important competitor in the Argentinean PP business, importing this product from its facility located in Sao Paulo.

 

For more on PP visit ICIS chemical intelligence
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By: Cristina Kroll
+1 713 525 2653



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