LyondellBasell (LYB) To Build HDPE Plant At La Porte Complex

LyondellBasell (NYSE:LYB) has chosen its La Porte, TX, manufacturing complex as the site for its new High Density Polyethylene (“HDPE”) Plant. The facility, which will have an annual capacity of 1.1 billion pounds (500,000 metric tons), will be the first commercial plant to employ the company’s new proprietary Hyperzone PE technology. The technology will have the capability to make a vast range of high-performance multi-modal HDPE products.

Construction of the plant is slated to commence in early 2017. Start-up for the project has been planned for 2019. The project is expected to create as much as 1,000 jobs at the peak of construction. The products made at the plant will serve markets across the globe. The project is part of the company’s ongoing growth initiatives.

The La Porte complex that spans 540 acres makes ethylene, propylene, Linear Low-Density Polyethylene (LLDPE) and Low-Density Polyethylene (LDPE). HDPE, LLDPE and LDPE are thermoplastics used to make a range of plastic products that are used in everyday life. The La Porte site is also the prime location of the company’s acetyls business with an integrated chain of manufacturing units.

Including capacity of its joint venture facilities, LyondellBasell currently produces 7.8 billion pounds (3.5 million metric tons) of HDPE per year. HDPE resins produced using the Hyperzone PE technology will show enhanced properties such as better stress crack resistance and improved balance between stiffness and impact strength. Hyperzone PE resins may also allow customers to use less PE resin per unit produced in some applications, leading to improved resource efficiency and savings for them.

LyondellBasell remains on track with its ethylene expansion programs. The company is executing its expansion projects to leverage the U.S. natural gas liquids (NGLs) advantage. The U.S. Gulf Coast is an advantaged feedstock region due to the abundance of shale-derived NGLs.

LyondellBasell has already completed an 800-million pound per year expansion at its La Porte site and a 250-million pounds per year expansion at the Channelview facility in Texas. A third ethylene expansion project is currently underway at its Corpus Christi plant. LyondellBasell is also making progress in the development of a world-scale plant at its Channelview site for producing propylene oxide (“PO”) and tertiary butyl alcohol (“TBA”).

LyondellBasell is a Zacks Rank #3 (Hold) stock.

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