LyondellBasell to close 255,000 tonne/year Italy PP plant

25 February 2010 15:12  [Source: ICIS news]

LONDON (ICIS news)--LyondellBasell plans to cease production at its 255,000 tonne/year polypropylene (PP) plant at Terni, Italy, the company said in a statement on Thursday.

“Demand for PP continues to be affected by global economic conditions and the resulting market environment has made facilities such as Terni no longer economically viable,” said Anton De Vries, LyondellBasell’s senior vice president, in the statement.

LyondellBasell expected to be able to meet projected customer demand for PP with product supplied from its other facilities in Italy, at Ferrara and Brindisi, according to the statement.

The company did not disclose when the plant would be closed.

“The company has started the employee consultation process,” said the statement.

A source close to the company said: “Works councils need to be consulted before timing can be discussed.”

The plan to close the PP plant came at a time when new capacities from the Middle East were expected to play a bigger role in global polymer markets.

LyondellBasell has several joint-venture PP and polyethylene (PE) projects in the Middle East.

PP availability in Europe was limited at the end of February, as propylene production issues exacerbated the already tight situation, and producers announced their intention to increase prices by €70-80/tonne ($95-108/tonne).

Homopolymer injection prices were trading around €1,020-1,050/tonne FD (free delivered) NWE (northwest Europe) at the end of February, having increased by €150-170/tonne in January and February combined.

PP producers in Europe include LyondellBasell, Borealis, SABIC, Total Petrochemicals, Dow Chemical, Repsol, INEOS Olefins and Polymers, Polychim and Domo.

($1 = €0.74)

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By: Linda Naylor
+44 20 8652 3214

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