LyondellBasell Begins Production at New PP Compounding Plant in Dalian, China

LyondellBasell, one of the largest plastics, chemicals and refining companies in the world, today announced the successful startup of a new 20 kilotonne per year polypropylene (PP) compounding plant in Dalian, China. This is the company's third facility in China, strategically located to serve the region's growing automotive market.

"With China's automobile market poised for significant growth over the next several years this facility allows us to better serve our customers, reduce shipping time and logistics costs while delivering a strong return for our shareholders," said LyondellBasell CEO Bob Patel. "This plant leverages our global value chain, from polypropylene technology to specialized compounded products, for the benefit of our customers in the region."

LyondellBasell is the largest producer of PP compounds in the world, with 15 wholly owned facilities, including the Dalian plant, and three joint ventures in 12 countries. Currently in China, LyondellBasell operates PP compounding plants in Suzhou and Guangzhou. The addition of the Dalian plant allows the company's further expansion into the strategically important North China region which is home to a number of major automobile manufacturers including BMW, Daimler, GM, Volkswagen, Audi, Nissan and Chery.

"This plant will supply our customers with the innovative products they need to produce more efficient and comfortable vehicles and allow us to maintain our leadership position in the automotive sector," said Richard Roudeix, LyondellBasell senior vice president, Olefins & Polyolefins, Europe, Asia and International.

Jean Gadbois, LyondellBasell senior vice president, Manufacturing, Europe, Asia and International, added, "Our plants in China use the same process and materials as the plants in other strategic regions to guarantee uniformity of specifications for our global customers."

LyondellBasell's PP compounds are found in almost all modern vehicles and significantly contribute to improved fuel efficiency and the ability of automobile manufacturers to comply with strict environmental standards for car interiors. For example:

Vehicle weight can be reduced by high-flow materials, allowing a reduction in wall thickness without compromising mechanical properties;

Components displaying a visual metallic effect can be molded-in-color for paint-free exterior applications;

Soft touch polypropylene compounds provide a pleasant experience in door panels, trims and handles for interior applications;

Materials containing low volatile organic compounds (VOCs) and low odor for use in car interior components that meet strict environmental standards and protect the health of the passengers; and,

Low density talc-filled compounds that provide a lightweight alternative for both interior and exterior applications.

Most recently, in 2015, the company announced the strategic acquisition of SJS Plastiblends Pvt. Ltd and the PP compounding assets of Zylog Plastalloys Pvt., making LyondellBasell the third largest producer of PP compounds in India. All LyondellBasell PP compounding plants provide tailor-made solutions allowing automobile parts to meet demanding automotive specifications while providing consistency with global quality standards.