LyondellBasell bankruptcy not affecting BOP - PKN Orlen

07 January 2009 16:37  [Source: ICIS news]

PRAGUE (ICIS news)--LyondellBasell's filing for bankruptcy protection for its US operations poses no visible threat to the financial or operational stability of Poland's Basell Orlen Polyolefins (BOP), Polish oil and petrochemical group PKN Orlen said on Wednesday.

“In regard to the information that LyondellBasell has filed for bankruptcy protection, PKN Orlen would like to inform that it doesn't see any threats to the functionality of BOP,” said Orlen spokesman Dawid Piekarz.

“PKN Orlen stays in constant contact with LyondellBasell, and also conducts monitoring and analyses the situation of LyondellBasell in terms of the functioning of BOP,” said Piekarz.

BOP, Poland's only polyolefins producer, is a 50-50 multi-platform joint venture of Orlen and LyondellBasell, which is connected by pipeline to Orlen's main oil refinery in Plock, central Poland.

BOP continued to work at full capacity rates despite the world economic slump, Piekarz said.

Its world-scale production units cost €500m ($676m) and include nameplate capacities of 320,000 tonnes/year of high density polyethylene (HDPE) and 400,000 tonnes/year of polypropylene (PP) as of August 2008.

The US operations of financially stricken LyondellBasell filed for Chapter 11 bankruptcy protection in a federal bankruptcy court in New York on Tuesday.

LyondellBasell's non-US operating entities will continue to function independent of the Chapter 11 process, the company said.

A LyondellBasell representative office was commissioned last November in Bratislava, Slovakia, partly to improve sales of BOP plastics to the automotive, packaging and raw material industries in central, eastern and south-eastern Europe.

($1 = €0.74)

For more on LyondellBasell visit ICIS company intelligence
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By: Will Conroy
+44 20 8652 3214

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