ROTTERDAM, The Netherlands and HONG KONG, Sept. 1, 2020 /PRNewswire/ -- LyondellBasell (NYSE: LYB) and China's Liaoning Bora Enterprise Group (Bora) today announced the establishment and start-up of their new joint venture polyolefin complex in the Liaoning province of northeastern China. First announced in September 2019, the 50:50 joint venture (JV) will operate under the name Bora LyondellBasell Petrochemical Co. Ltd. (BLYB).
"Demand for polyolefins has returned in China after the pandemic-related economic slowdown earlier in the year and the long-term growth trends are very favorable for this project," said Bob Patel, CEO of LyondellBasell. "Our BLYB joint venture brings together the best of both LyondellBasell and Bora, leveraging the companies' knowledge and experience to help to meet the growing demand for polyolefin products in China. We look forward to potential future opportunities that would allow us to expand our local manufacturing footprint."
The two parties are planning medium-to-long term collaboration on additional petrochemical projects that could be deployed in multiple phases over the next 10 years.
"The Northeast is on the forefront of China's next round of regional revitalization. It is an increasingly attractive destination for investment, blessed with abundant natural resources, upgraded infrastructure, and a rapidly improving business environment, supported by the government's long-term development vision," said Qu Baoxue, the controlling shareholder of Bora. "We are excited to work with LyondellBasell through BLYB to better serve our customers' needs, support the development of China's petrochemical industry, and contribute to the revitalization of northeastern China."
The BLYB complex is one of the world's most advanced polyolefins production sites and is one of the largest of its kind in China. The facility includes a 1.1 million metric ton per annum flexible naphtha / LPG cracker and associated polyethylene production capacity of 800,000 metric tons per annum and 600,000 metric tons per annum of polypropylene. The BLYB complex utilizes LyondellBasell's industry-leading Spheripol and Spherizone polypropylene technologies along with the company's Hostalen ACP polyethylene technology. The materials produced at the facility will be sold for use within China.
"We are very proud of the new joint venture and this facility. It will play a critical role in efficiently providing high-performance materials to existing and new customers through our four hubs across China," said Limin Fu, Chairman of the Board of BLYB. "The complex will supply polyolefin products for various industries in China, including packaging, transportation, building and construction, and healthcare and hygiene."
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polypropylene compounds and the largest licensor of polyolefin technologies. In 2020, LyondellBasell was named to Fortune Magazine's list of the "World's Most Admired Companies" for the third consecutive year.
Liaoning Bora Enterprise Group is one of the largest private petrochemical enterprises in northeastern China, with total assets of more than RMB 100 billion. PNAF, a core subsidiary of Bora Enterprise Group, has the right to use 7 million metric tons per annum of imported crude oil, the license for non-state trading of importing crude oil and the qualification for wholesale of refined oil products. In 2019, PNAF ranked 299th among the "Top 500 Chinese Enterprises".
The statements in this release relating to matters that are not historical facts are forward-looking statements. These forward-looking statements are based upon assumptions of management which are believed to be reasonable at the time made and are subject to significant risks and uncertainties. Actual results could differ materially from the projections, anticipated results, or other expectations expressed in this release, including, but not limited to, the successful operation of the complex described; future demand and the growth of the global polyolefin market and in the regions described; and general economic conditions in geographic regions or markets served by LyondellBasell and its affiliates, or where operations of the company and its affiliates are located. While these statements and projections are made in good faith, LyondellBasell and its management cannot guarantee that anticipated future results will be achieved. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the "Risk Factors" section of our Form 10-K for the year ended December 31, 2019, and our Form 10-Q for the quarter ended March 31, 2020 which can be found at www.LyondellBasell.com on the Investor Relations page and on the Securities and Exchange Commission's website at www.sec.gov. LyondellBasell assumes no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made, whether as a result of new information, future events, or otherwise.