SINGAPORE (ICIS)--LyondellBasell and Sinopec expect to start up their joint propylene oxide (PO)/styrene monomer (SM) unit at Zhenhai in Ningbo, China at the end of the year.
The facility is expected to produce 275,000 tonnes/year of PO and 600,000 tonnes/year of SM.
It will be operated by the companies’ new joint venture company called Ningbo ZRCC LyondellBasell New Material Co, LyondellBasell said in a statement on Tuesday.
Sinopec and LyondellBasell have signed an agreement finalizing the new joint venture, but the deal is still subject to regulatory approvals.
LyondellBasell expects to make its equity contribution to the new joint venture during the first quarter of this year.
"As China's economy continues to grow, so will demand for propylene oxide and styrene monomer,” said Torkel Rhenman, executive vice president for intermediates and derivatives, and refining at LyondellBasell.
“We are excited to expand our relationship with Sinopec through this joint venture in order to better serve China's domestic market,” he said.
Products produced by the joint venture plant, which will use LyondellBasell's PO/SM technology, will be marketed equally by both partners.
PO and SM are core products of LyondellBasell and are used in a variety of applications including packaging, building and construction, furnishings and transportation.
The two companies have an existing joint venture firm, Ningbo ZRCC Lyondell Chemical Co, which operates a PO/SM plant in Zhenhai.
The plant produces 285,000 tonnes/year of PO and 620,000 tonnes/year of SM, according to ICIS data.
LyondellBasell operates five wholly-owned facilities in China which are located in Guangzhou, Suzhou, Dalian, Dongguan and Changshu.
Additional reporting by Pearl Bantillo
Photo: LyondellBasell and Sinopec on Tuesday announced the signing of an agreement to form a 50:50 JV which will produce PO and SM in China's domestic market. (Source: LyondellBasell)