Engineering News

Equistar To Stop LDPE Production At Pasadena Plant
Friday, June 27, 2008

Equistar Chemicals, LP will stop producing low density polyethylene (LDPE) at its Pasadena, Texas, tubular process unit by the end of the year, parent company LyondellBasell Industries announced Friday. Production will shift to other sites.

"The decision to stop producing LDPE at this facility was made after an extensive review, which demonstrated that the unit was no longer financially viable," said Jerry Parker, Vice President of Polyethylene Americas.

The Pasadena LDPE unit is operated for Equistar by Sunoco. Equistar owns and operates three other LDPE facilities in North America -- in Clinton, Iowa; La Porte, Texas; and Morris, Ill. In addition, LyondellBasell Industries owns a refinery and three other facilities that produce chemicals and polyolefins in Pasadena.

"High operating costs at the site and unfavorable market economics have provided inadequate financial returns. With the challenging market conditions in North America, continued growth requires economies of scale, low conversion costs and the ability to produce value-added products," Parker said.

LyondellBasell Industries is one of the world's largest polymers, petrochemicals and fuels companies. LyondellBasell is the global leader in polyolefins technology, production and marketing; a pioneer in propylene oxide and derivatives; and a significant producer of fuels and refined products, including bio-fuels. Headquartered in The Netherlands, LyondellBasell is privately owned by Access Industries.

Source: LyondellBasell Industries

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