LyondellBasell and Sinopec Sign MoU to form joint venture to manufacture propylene glycol ether in China
Shanghai, Nov 30, 2021 — LyondellBasell (NYSE: LYB) today announced it has signed a Memorandum of Understanding (MoU) with Sinopec to expand on the existing 50:50 joint venture (JV) called Ningbo ZRCC LyondellBasell New Material Co., Ltd.. Under the non-binding MoU, the JV will construct a new propylene glycol ether (PGE) unit in Zhenhai, Ningbo, China to serve the growing Asian market. The new PGE unit will be built close to the existing propylene oxide / styrene monomer (PO/SM) plant, allowing for integration with PO, the key raw material for PGE. PGE is widely used in coating and electronics applications.
“Asia is a strategic region for our company, and we see increasing demand for our products with the growth of the economy. In particular, PGE is a key component in the supply chain for semiconductor manufacturing, and this world-scale facility will support the growth of semiconductor manufacturing in China and the rest of Asia, ” said Torkel Rhenman, Executive Vice President, Intermediates and Derivatives, and Refining, LyondellBasell. “We are very delighted to continue to expand our partnership with Sinopec through this joint venture and produce PGE locally to serve the market more efficiently.” The new facility is expected to produce 125 kilotons per annum (KTA) by using LyondellBasell’s leading PGE process technology, with start-up expected in the second half of 2023.
