LyondellBasell announces expansion of 400,000 tons of propylene capacity!

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LyondellBasell announces expansion of 400,000 tons of propylene capacity!

Polymer Recycling 2025-04-01 10:23:33

Recently, LyondellBasell (LYB) announced plans to invest in expanding the propylene production capacity at its Channelview complex near Houston.

The project is scheduled to commence construction in the third quarter of 2025 and is expected to be operational by the end of 2028. The facility will produce approximately 400,000 tons of propylene annually, create 750 temporary jobs during the peak construction period, and is projected to add 25 permanent positions upon completion.

The new facility will utilize olefin metathesis technology to convert ethylene into propylene, which will then be further used in the production of polypropylene and epoxy propane. These are essential basic materials in daily life, widely applied in industries such as food packaging, medical devices, automotive components, aircraft de-icing fluids, building insulation materials, home decoration pads, and communication equipment.

Let's talk about LyondellBasell's business empire, starting with its development history.

From 1953 to 1954, former company scientists Karl Ziegler and Giulio Natta made groundbreaking discoveries in the production of polyethylene and polypropylene, earning them the Nobel Prize in Chemistry in 1963.

In 1955, the company’s predecessor Hoechst began industrial production of polyethylene in Frankfurt, Germany.

In 1957, the company's predecessor, Montecatini, became the first company to industrially produce thermoplastic resins.

In 1969, the company's predecessor, Atlantic Richfield Company (ARCO), developed the PO/TBA process (with epoxides and tertiary butyl alcohol as by-products).

In 1975, the first factory producing high-density polyethylene (HDPE) was launched.

In 1982, Montedison, the predecessor of the company, first introduced the Spheripol process, which is now the most widely used polyolefin process technology.

In 1985, the chemical and refining sectors of Atlantic Richfield Company (ARCO) formed Lyondell Chemical Company.

In 2000, Montell, Targor, and Elenac merged to form Basell, with Shell and BASF each holding 50% of the shares.

In 2001, BASF launched the world's largest low-density polyethylene (LDPE) facility in France, with a capacity of 320,000 tons per year on a single line.

In 2002, the company launched the Sperizone process. In 2007, Basel acquired Lanxess to form Lanxess Basel.

In 2017, LyondellBasell built a new Hyperzone HDPE plant in Texas, utilizing the company's proprietary Hyperzone PE technology.

In 2018, the acquisition of A. Schulman, a global leader in high-performance plastics, was completed, and the Advanced Polymer Solutions (APS) segment was formed.

In 2019, the company launched Circulen and Circulen Plus bio-based polymers.

In 2021, a joint venture project with an annual output of 400,000 tons of PP was launched in Ulsan, South Korea, expanding the Circulen series of sustainable solutions to the advanced polymer solutions division.

LyondellBasell's main advantageous businesses

The main product capacity of Lanxess.

Currently, LYB's polyolefin technology licensing business and PP modification business rank first in market share globally, while its PP and PO products rank second in market share worldwide. The overall scale of its PE+PP business ranks third globally. Its core assets and production capacity mainly involve ethylene, propylene, polyethylene, polypropylene, PO, and styrene.

LYB's business departments mainly include:

O&P Americas (Olefins & Polyolefins - North America)

O&P Europe, Asia and International

Intermediates & Derivatives

Advanced Polymer Solutions

Refining (Oil refining)

Technology (Technology Transfer)

Table: Revenue of LYB Business Units, 2022-2023

One of the most important global players in the olefins and polyolefins business.

In the field of olefins and polyolefins, LYB is the largest polyolefin producer in Europe, the second-largest polyolefin producer in North America, and one of the top five olefin product producers globally.

According to disclosed 2021 data, LYB is the fifth-largest ethylene producer globally, with a market share of approximately 4%, following Saudi Aramco/SABIC, Dow, Exxon, and Sinopec. When calculating the polyolefin market share based on PE+PP, LYB is the third-largest supplier globally, ranking behind only Sinopec and Exxon.

LYB's market share in the global PE and PE+PP markets, 2021

LYB and major polyolefin suppliers' polyolefin product capacity, 2021

In the North American market, LYB's ethylene market share is 13%, and its PE+PP market share is 15%. LYB has 2.45 million tons of PE, 1.05 million tons of LDPE, 1 million tons of PE, and 2.21 million tons of PP in North America. The upstream includes 6.95 million tons of ethylene and 2.5 million tons of propylene.

LYB's market share of ethylene and polyolefins in North America

Table: LYB's Olefin and Polyolefin Production Capacity in North America

LYB's EBITDA contribution by business unit in 2022

From the company's EBITDA margin contribution in 2022, the olefin and polyolefin business in North America performed significantly better than other regions of the company. This is mainly attributed to the favorable economics of North American ethane cracker operations.

In Europe, LYB is the fifth-largest ethylene producer with an 8% market share and a capacity of 4.05 million tons. Its PE+PP capacity ranks first in Europe, with a market share of about 18%. The company has a production capacity of 4.05 million tons of ethylene, 2.75 million tons of propylene, 2.3 million tons of HDPE, 1.25 million tons of LDPE, 0.45 million tons of LLDPE, and 6.85 million tons of PP.

LYB's market share of ethylene and polyolefins in Europe

LYB's Global Distribution of Polyolefin Process Package Authorizations

As of 2023, Basel has licensed over 300 polyolefin plants, with PP and PE capacity exceeding 80 million tons, accounting for 30% of the global total. LYB's technology licensing and catalyst division reported revenue of $693 million and EBITDA of $366 million in 2022. Over the past decade, it has licensed over 100 polyolefin technologies, ranking first globally in PP technology licensing and second in PE technology licensing, with over 6,000 patents.

LYB Polyolefin Catalyst Business Global Distribution

In the field of polyolefin catalysts, there are currently three production plants in New Jersey, USA, Germany, and Italy. The current global market share ranks first.

History of LYB Polyolefin Technology Development

Throughout the history of LYB and its predecessors in the development of polyolefin technology, key milestones include: the start of HDPE production using the Hostalen process in 1955, the introduction of Spheripol for PP production in 1982, the use of Calalloy for producing high-end polyolefin resins in 1990, followed by the launch of Spherizone in 2002, and the introduction of the MoReTech polyolefin cracking process to the market in 2023.

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LyondellBasell announces expansion of 400,000 tons of propylene capacity!

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