The 50/50 JV includes a 1.5 million t ethane cracker, 0.9 million t low-density and linear-low density polyethylene plants, and associated infrastructure near Lake Charles, Louisiana, US, and will toll manufacture the products on behalf of the two shareholders.
Under the terms of the transaction agreements, LyondellBasell will operate the three assets on behalf of the JV and market the polyethylene products on behalf of the two shareholders of the JV. Approximately 400 Sasol Lake Charles employees who directly support the JV assets are now employees of LyondellBasell.
"The formation of this JV is part of our approach to growing our core businesses while positioning the company to benefit from improving economic conditions," said Bob Patel, CEO of LyondellBasell. "We believe our ability to operate efficiently and serve growing markets will create exceptional long-term value for our shareholders of both companies. We welcome our new JV employees to the LyondellBasell family."
"This transaction accelerates the transformation of our chemicals business toward a focus on specialty chemicals," said Fleetwood Grobler, Sasol President and CEO. "We're proud of the world-scale assets we've built in Southwest Louisiana and look forward to working with LyondellBasell to realise their full potential and create value for all our stakeholders. We also extend our best wishes and gratitude to our colleagues who are transferring to LyondellBasell to operate the joint venture assets."
In September 2020, LyondellBasell established a 50/50 JV with China's Liaoning Bora Enterprise Group to start up and operate a new, large petrochemical complex in northeast China. Taken together, the Bora and Sasol JVs are equivalent to the full capacity and immediate financial benefits of a new and operational world-scale integrated cracker complex.
Read the article online at: https://www.hydrocarbonengineering.com/refining/03122020/lyondellbasell-and-sasol-complete-louisiana-polyethylene-jv-transaction/