LyondellBasell Highlights Strategy at Investor Day
NEW YORK, Dec. 8, 2011 /PRNewswire via COMTEX/ -- LyondellBasell (LYB) CEO Jim
Gallogly today told participants at the company's annual Investor Day in New York
that LyondellBasell is well positioned for the future. The company has had
successive quarters of record results and delivered $5.5 billion of EBITDA over
the last 12 months.
Gallogly and other LyondellBasell executives reviewed recent financial
performance, the near-term outlook, a business segment-by-segment report of
achievements, and the company's plans for growth in front of an audience of
investors participating in the half-day program that was broadcast on the
company's website. A replay of the webcast can be accessed beginning at 4 p.m. ET
today through Dec. 29, 2011 at
lyondellbasell.com.
"The past 18 months have been a period of significant progress at
LyondellBasell," Gallogly said. "We have rebuilt this company from the plant
floor up. We have improved our cost structure, strengthened our balance sheet and
enhanced all aspects of our operations. The collective efforts and success of our
employees around the world in implementing our back-to-basic strategy is proof we
have what it takes to become the premier commodity petrochemical company. We
believe we have now earned the right to grow and are well-positioned for the
future," Gallogly said.
Highlights of Investor Day 2011 included an overview of the following investments
in high-return growth projects:
Ethylene Capacity Expansion - an expansion of the La Porte, Texas, steam cracker
is expected to increase the annual production of ethylene from low-cost ethane by
approximately 850 million pounds to a total capacity in excess of 2.5 billion
pounds per year.
China PO/TBA Plant Study -an agreement to conduct a joint feasibility study to
construct a world scale PO/TBA plant in Ningbo, China, has been signed by
LyondellBasell and Sinopec. The study will recommend the final scope of the
project, costs and a construction schedule for a new joint venture plant.
Methanol Plant Restart - to take advantage of low-cost natural gas supplies,
LyondellBasell plans to restart a 780 KT per year methanol plant at Channelview,
Texas.
Ethane Feedstock Flexibility - the Channelview plant is expected to increase its
capability to process low-cost ethane feedstocks by an additional 500 million
pounds per year. The company also continues to study a modest ethylene capacity
expansion at this site.
Co-Product Flexibility Expansion - the company is advancing a project to build a
new metathesis unit at Channelview which is planned to increase propylene
production by 500 million pounds per year of equivalent ethylene.
Butadiene Expansion at Wesseling - butadiene capacity at Wesseling, Germany, will
be expanded by 40 percent, from 170 KT to 238 KT per year, through a
debottlenecking project.
Commenting on the growth projects discussed at Investor Day 2011, Gallogly said,
"The North American projects build upon our asset and technology positions,
coupled with cheap and abundant natural gas and natural gas liquids, to offer
high-returns in a relatively short period. Additionally, they are expected to be
completed more quickly and inexpensively than greenfield projects. While only at
the feasibility stage, a new PO plant in China offers the potential to be the
lowest-cost site in the world. The project in Germany will provide additional
value from co-products."
LyondellBasell (LYB) is one of the world's largest plastics, chemical and
refining companies. The company manufactures products at 58 sites in 18
countries. LyondellBasell products and technologies are used to make items that
improve the quality of life for people around the world including packaging,
electronics, automotive parts, home furnishings, construction materials and
biofuels. More information about LyondellBasell can be found at
lyondellbasell.com.
This news release contains forward-looking statements with respect to the
company's planned growth projects. These statements are not guarantees of future
performance or success of these projects. Factors that could cause actual results
to differ from the forward-looking statements contained in this release include,
but are not limited to, availability, cost and price volatility of raw materials
and utilities; supply/demand balances; industry production capacities and
operating rates; uncertainties associated with worldwide economies; legal, tax
and environmental proceedings; cyclical nature of the chemical and refining
industries; operating interruptions; current and potential governmental
regulatory actions; terrorist acts; international political unrest; competitive
products and pricing; technological developments; the ability to comply with the
terms of our credit facilities and other financing arrangements; the ability to
implement business strategies; and other factors affecting our business generally
as set forth in the "Risk Factors" sections of our Forms 10-K and Forms 10-Q
filed with the Securities and Exchange Commission.
SOURCE LyondellBasell |
