Engineering News

BASF awarded $170 mln claim against Lyondell in US
Wed Aug 15, 2007 11:13AM EDT

FRANKFURT, Aug 15 (Reuters) - Germany's BASF said it had won a claim for $170 million against Lyondell Chemical after a U.S. jury decided the company charged more for propylene oxide than a 1998 contract had dictated.

"We are pleased that the jury recognized the validity of BASF's claim against Lyondell for breach of contract," BASF said in a statement on Wednesday.

Lyondell, which can appeal the verdict, disagrees with the jury's conclusion, spokesman David Harpole said.

"We are currently evaluating all our options, including a motion for a new trial," he said.

Propylene oxide, or PO, is used to produce propylene glycol and polyurethanes for use in furniture parts, foams and coatings.

The 1998 contract called for BASF to buy PO from Lyondell for 13 years.

Under the agreement, BASF would never have to pay more than the lowest price Lyondell was charging any of its other customers.

The lawsuit claimed Lyondell had been selling PO to other companies at lower prices than it was to BASF.

Dutch-based chemical firm Basell [BASL.UL] is buying Lyondell for about $19 billion, including the assumption of debt, to create one of the sector's largest companies.

BASF shares were down 0.1 percent 91.81 euros, while Lyondell gained 0.7 percent to $44.66, compared with 0.4 percent rise in the DJ chemicals index.

Source: Reuters

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