LyondellBasell and Sinopec announced the signing of an agreement to form a 50:50 joint venture (JV) that will produce propylene oxide (PO) and styrene monomer (SM) in China’s domestic market. First announced in December 2019, the JV will operate under the name Ningbo ZRCC LyondellBasell New Material Company Limited.
The JV will construct a new PO and SM unit in Zhenhai Ningbo, China. This unit will have 275 kilotons per annum (KTA) capacity of PO and 600 KTA capacity of SM. The unit will use LyondellBasell’s leading PO/SM technology. Products produced by the JV will be marketed equally by both partners. A startup is expected at the end of 2021.
The formation of the JV is subject to approvals by relevant government authorities, including antitrust review by the State Administration for Market Regulation. LyondellBasell operates five wholly-owned facilities in China which are located in Guangzhou, Suzhou, Dalian, Dongguan, and Changshu.
PO and SM are used in a variety of applications including packaging, building and construction, furnishings, and transportation. According to IHS Markit, China accounts for more than 60 % of chemical market demand in Asia and represents 40 % of global chemical market growth over the next decade.
- LyondellBasell, Rotterdam, The Netherlands
- China Petroleum & Chemical Corporation (Sinopec), Beijing, China