Lyondell’s First Investment in China: The World’s Largest Propylene Oxide/ Styrene Monomer (POSM) Production Equipment to Be Built

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Researched by Industrial Info (Sugar Land, Texas). The establishment and plaque unveiling ceremony of Ningbo Zhenhai Refining & Chemical – Lyondell Chemical Limited was held on April 18 in the Great Hall of the People in Beijing. This signals the Sino-American joint POSM project at Zhenhai Refining & Chemical has entered into the actual operation stage.

Ningbo Zhenhai Refining & Chemical – Lyondell Chemical Limited was established by the joint investment from China Petroleum and Chemical Corporation’s (Sinopec) Zhenhai Refining & Chemical Limited and Lyondell Holdings, China. The total investment is estimated to be over $574 million, and the projected annual production is 285,000 tons of propylene oxide and 620,000 tons of styrene monomer. This unit is the largest single chemical manufacturing equipment built by Sinopec (NYSE:SHI ) and foreign investment, and it is also the largest POSM producing unit worldwide. The construction and installation of the unit is scheduled to be completed by the end of 2009. The expected annual sales will exceed $1.29 billion.

The major goal to be achieved through the joint project is to import the advanced technology from Lyondell. It is the first cooperation between Sinopec and Lyondell and it is also the first investment by Lyondell in China towards production.

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