Boston, MA 08/26/2014 (wallstreetpr) – LyondellBasell Industries NV (NYSE:LYB) plans to build propylene oxide (PO)/ tertiary butyl alcohol (TBA) plant on the U.S. Gulf Coast. The plant will have a production capacity of 900 million pounds of PO and 2 billion pounds of TBA and its derivatives per year. The Company plans to make the plant operational by 2019 and expects to generate more than 1,200 jobs related to construction from these settings.
Why does LyondellBasell require additional plant?
LyondellBasell plans to retain its leading position in the areas of plastics and chemicals. LyondellBasell Industries NV (NYSE:LYB) sees increasing opportunity worldwide in the manufacturing with the growing demands of polyurethanes and gasoline blending components.
So, LyondellBasell Industries NV (NYSE:LYB) will take the advantage of its strong PO position and leader in PO technology. The Company will sell PO to increasing use of polyurethanes in the manufacturing of furniture, bedding, carpets and car seat covers.
Moreover, the production of TBA and its derivatives will help to meet the demand of high-octane gasoline blending components and provide products to use in making of synthetic rubber and lubricants additives.
How does the additional plant offer benefits?
As of now, the Intermediates and Derivatives (I&D) segment contributed approximately 22% of revenues and continued the trend as the industry fundamentals remains strong. The Company has a well-diversified set of products including PO/TBA related products and has the potential to support the overall earnings of LyondellBasell Industries NV (NYSE:LYB).
LyondellBasell’s Senior VP, I&D, Pat Quarles also said that the Company wants to take the advantages of growing market opportunities while leveraging the proprietary PO/TBA technology. LyondellBasell Industries NV (NYSE:LYB)is still looking for a feasible option in the U.S. Gulf Coast that will provide low-cost feedstock.
So, the expansion of production capacity will further help LyondellBasell Industries NV (NYSE:LYB) to meet increasing needs of PO and TBA products going forward.
