LyondellBasell CEO Jim Gallogly to retire in early 2015

HOUSTON (ICIS)–LyondellBasell’s CEO Jim Gallogly will retire from the company in early 2015, after a tenure that saw the company emerge from bankruptcy protection and its stock rise by more than 300%, the Dutch petrochemical major said on Monday.

He will continue to serve as CEO and chairman of the company’s management board in the interim to ensure an orderly transition, the company said.

LyondellBasell has created a committee to choose a successor.

Gallogly joined LyondellBasell in May 2009 from ConocoPhillips, where he was vice president of exploration and production. From 2000-2006, he was CEO of Chevron Phillips Chemical.

Gallogly joined LyondellBasell while it was still operating under Chapter 11 bankruptcy protection. The company filed for bankruptcy protection in January 2009, in the midst of the global financial crisis.

Under Gallogly, the company emerged from bankruptcy protection 16 months later in April 2010.

Within months, the company’s shares began trading on the New York Stock Exchange (NYSE). They closed the day slightly above $27/share.

Following its listing, ICIS chose Gallogly as the head of its Top 40 Power Players in 2011.

Meanwhile, the stock continued to rise. On Monday, it closed at $113.41.

After the listing, Gallogly steered the company as LyondellBasell and the rest of the US chemical industry dealt with a momentous shift in the nation’s petrochemical industry.

Before, high feedstock costs had caused many companies to shut down plants and give up on expansion. The US had almost no methanol plants.

The advent of shale gas and the resulting cheap feedstocks changed the outlook for the industry, and companies began expanding and restarting plants.

LyondellBasell undertook several debottlenecking projects, under the rationale that these were the quickest way to bring cost-advantaged product to the market − before its competitors could build new plants.

Earlier this year, LyondellBasell restarted its methanol plant in the US.

The company now plans to further expand ethylene capacity at its plant in Channelview, Texas, by about 250,000 tonnes/year. It is also considering a 1bn lb/year (454,000 tonnes/year) polyethylene (PE) plant.

“There is never a perfect time to leave a company with as much promise as LyondellBasell, but this is the right time for me,” Gallogly said. “Having achieved the goals that I set for myself professionally and for the company, I feel it’s time to move on to the next chapter, putting a priority on my family and philanthropic efforts.”

He added, “The company is at a point where the successful strategies and strong leadership team we have in place are poised to take full advantage of the favourable industry conditions that are expected for the foreseeable future.  I truly believe the company’s best days lie ahead.”

Supervisory board chairman Robert Gwin said, “As the company moves forward, we will build on the solid foundation Jim created by continuing to focus on safety, cost control, taking maximum advantage of market opportunities and by investing in technology-driven growth.”