13 March 2013 15:18 [Source: ICIS news]
NEW YORK (ICIS)--LyondellBasell is in the early stages of evaluating a possible new 1bn lb/year (454,000 tonnes/year) polyethylene (PE) plant in North America that could come on line by 2016, senior executives said on Wednesday.
“We are in the early stages but moving it forward,” said Tim Roberts, senior vice president of olefins and polyolefins – Americas, at the company’s annual investor day.
The project, at an unspecified location, would cost around $200m (€154m) and add between $50m and $100m in annual value, noted Roberts.
“Today [PE] margins are thinner than they have been historically, but we think there is a bit of an upcycle to come,” said Jim Gallogly, CEO of LyondellBasell.
“Right now we’re long olefins in the US, which has been a competitive advantage … but we have an opportunity to create an export platform with PE at a nice, reasonable margin,” he added.
The company is also planning a PE debottleneck at one of its existing facilities that would add 220m lb/year by 2014 at a cost of $20m, noted Roberts.
($1 = €0.77)
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