Profile: LyondellBasell Industries NV (LYB.N)

LYB.N on New York Stock Exchange

1 May 2015
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LyondellBasell Industries N.V., incorporated on October 15, 2009, is an independent chemical company. The Company’s chemicals businesses consist of processing plants that convert volumes of liquid and gaseous hydrocarbon feedstock into plastic resins and other chemicals. Its customers use its plastics and chemicals to manufacture a range of products, including food packaging, home furnishings, automotive components, paints and coatings. Its Houston refinery processes crude oil into fuels such as gasoline, diesel and jet fuel. Its segments include Olefins and Polyolefins-Americas (O&P-Americas), Olefins and Polyolefins-Europe, Asia, International (O&P-EAI), Intermediates and Derivatives (I&D), Refining & Oxyfuels and Technology. It’s O&P-Americas and O&P-EAI products include olefins, polyolefins and polypropylene (PP) compounds. I&D products include acetyls and ethylene derivatives. Refining & Oxyfuels include gasoline and alkylate. Technology include PP process technologies land Polyolefin catalysts. On January 4, 2012, refinery operations were suspended at its Berre refinery in France.

Olefins and Polyolefins-Americas Segment

The Company’s O&P-Americas segment produces and markets olefins, polyolefins, aromatics, specialty products and ethylene co-products. In addition, it produces specialty products, including Catalloy resins and other products which are co-products of its olefins operations. Its olefins products include ethylene, propylene, butadiene, benzene and toluene. Ethylene is used as a raw material to manufacture polyethylene, Ethylene oxide (EO), ethanol, ethylene dichloride, styrene, vinyl acetate monomer (VAM) and other products. Propylene is used to produce PP, acrylonitrile, propylene oxide (PO) and other products. Butadiene is used to manufacture styrene-butadiene rubber and polybutadiene rubber, which are used in the manufacture of tires, hoses, gaskets and other rubber products. Butadiene is also used in the production of paints, adhesives, nylon clothing, carpets, paper coatings and engineered plastics. Benzene is used to produce styrene, phenol and cyclohexane. These products are used in the production of nylon, plastics, synthetic rubber and polystyrene. Polystyrene is used in insulation, packaging and drink cups. Toluene is used as an octane enhancer in gasoline, as a chemical raw material for benzene and/or paraxylene production and as a core ingredient in toluene diisocyanate, a compound used in urethane production.

Its polyolefins products include High density polyethylene (HDPE), Low density polyethylene (LDPE), Linear low density polyethylene (LLDPE) and PP. HDPE is used to manufacture grocery, merchandise and trash bags; food containers for items from frozen desserts to margarine; plastic caps and closures; liners for boxes of cereal and crackers; plastic drink cups and toys; dairy crates; bread trays; pails for items from paint to fresh fruits and vegetables; safety equipment, such as hard hats; house wrap for insulation; bottles for household and industrial chemicals and motor oil; milk, water, and juice bottles;(rotomolded) tanks for storing liquids, such as agricultural and lawn care chemicals, and pipe. LDPE is used to manufacture food packaging films; plastic bottles for packaging food and personal care items; dry cleaning bags; ice bags; pallet shrink wrap; heavy-duty bags for mulch and potting soil; boil-in-bags ; coatings on flexible packaging products, and coatings on paper board, such as milk cartons. Ethylene vinyl acetate is a specialized form of LDPE used in foamed sheets, bag-in-box bags, vacuum cleaner hoses, medical tubing, clear sheet protectors and flexible binders. LLDPE is used to manufacture garbage and lawn-leaf bags; industrial can liners; housewares; lids for coffee cans and margarine tubs; dishpans, home plastic storage containers, and kitchen trash containers; (rotomolded) toys, such as outdoor gym sets; drip irrigation tubing; insulating resins and compounds used to insulate copper and fiber optic wiring; shrink wrap for multi-packaging canned food, bag-in-box bags, produce bags, and pallet stretch wrap. PP is primarily used to manufacture fibers for carpets, rugs and upholstery; housewares; medical products; automotive interior trim, fascia, running boards, battery cases, and bumpers; toys and sporting goods; fishing tackle boxes, and bottle caps and closures.

The Company’s specialty polyolefins products include Catalloy process resins. Catalloy process resins are used primarily in modifying polymer properties in film applications and molded products; for specialty films, geomembranes, and roofing materials; in bitumen modification for roofing and asphalt applications, and to manufacture automotive bumpers. The Company produces ethylene at five sites in the United States. It produces propylene at six sites in the United States. It has butadiene and aromatics (benzene and toluene) production capabilities at two sites in the United States. In the United States, most of the ethylene and propylene production of its Channelview, Corpus Christi and La Porte facilities is shipped via a pipeline system, which has connections to numerous United States Gulf Coast consumers. The Company manufactures polyethylene (PE) using a variety of technologies at six sites in the United States.

The Company competes with Dow, ExxonMobil, Nova, Shell, INEOS, ChevronPhillips, TPC Group, Westlake, Total, Braskem and Formosa Plastics.

Olefins and Polyolefins-Europe, Asia, International Segment

The Company’s O&P-EAI segment produces and markets olefins (ethylene and ethylene co-products) and polyolefins. It also produces other specialty products such as Catalloy process resins and PB-1. Its O&P-EAI segment manages its worldwide PP compound business (including its facilities in North and South America), its worldwide PB-1 business, and its Catalloy process resins produced in Europe and Asia. It produces ethylene and propylene at three sites in Europe and produce butadiene at two sites in Europe. It also produces each of these products at a joint venture site in the Middle East and produce propylene at two other joint venture sites in the Middle East and one joint venture site in Thailand. It produces polyolefins (PP and/or PE) at 19 facilities in the EAI region, including 10 facilities in Europe, four facilities in East Asia, three facilities in the Middle East and two facilities in Australia. Its joint ventures own one of the facilities in Europe, four of the facilities in East Asia and three in the Middle East. It produces Catalloy process resins at two sites in the EAI region, including one in The Netherlands and one in Italy. It produces PB-1 at one facility in Europe.

The Company’s olefins products include ethylene, propylene and butadiene. Its polyolefins products include PP, HDPE and LDPE. Its specialty polyolefins products include PP compounds, Catalloy process resins and PB-1 resins. PP compounds are used to manufacture automotive interior and exterior trims, dashboards, bumpers and under-hood applications; base material for products and parts used in appliances; anti-corrosion coatings for steel piping, wire and cable. PB-1 resins are used in flexible pipes, resins for seal-peel film, film modification, hot melt and polyolefin modification applications, consumer packaging and adhesives. It produces ethylene at one site in France, two sites in Germany, and one joint venture site in the Middle East. It produces propylene at one site in France, two sites in Germany, three joint venture sites in the Middle East and one joint venture site in Thailand. It uses propylene asa raw material for production of PO and PP. It produces butadiene at one site in France and one site in Germany. It sells its butadiene under multi-year contracts. It produces PP at eight sites in Europe, four sites in East Asia, two sites in Australia and two sites in the Middle East. All of the sites in East Asia and the Middle East and one of the sites in Europe (Poland) are owned by joint ventures. It manufacture PE at five sites in Europe, including one joint venture facility in Poland, and one joint venture site in the Middle East.

The Company competes with INEOS, Total, SABIC, Shell, BASF Corporation (BASF), ExxonMobil, Borealis, Dow, Polimeri Europe, Repsol, King Fa, Mitsubishi, Mitsui, Sumitomo Chemical Co., Ltd., Washington Pen and Braskem.

Intermediates and Derivatives Segment

The Company’s I&D segment produces and markets propylene oxide (PO) and its co-products and derivatives; acetyls, and ethylene oxide and its derivatives. PO co-products include SM and C4 chemicals (Tertiary butyl alcohol (TBA), isobutylene and TBHP). PO derivatives include propylene glycol (PG), propylene glycol ethers (PGE) and butanediol (BDO). Its PO Co-Products products include Styrene Monomer (SM) and TBA Derivative Isobutylene. SM is used to produce plastics, such as expandable polystyrene for packaging, foam cups and containers, insulation products and durables and engineering resins. Isobutylene is a derivative of TBA used in the manufacture of synthetic rubber as well as fuel and lubricant additives, such as Methyl tertiary butyl ether (MTBE) and Ethyl tertiary butyl ether (ETBE).

PG is used to produce unsaturated polyester resins for bathroom fixtures and boat hulls; antifreeze, coolants and aircraft deicers; and cosmetics and cleaners. PGE are used as solvents for paints, coatings, cleaners and a variety of electronics applications. BDO is used in the manufacture of engineering resins, films, personal care products, pharmaceuticals, coatings, solvents and adhesives. Acetyls include methanol, acetic acid and vinyl acetate monomer (VAM). Methanol is a raw material used to produce acetic acid, MTBE, formaldehyde and several other products. Acetic acid is a raw material used to produce VAM, terephthalic acid (used to produce polyester for textiles and plastic bottles), industrial solvents and a variety of other chemicals. VAM is used to produce a variety of polymers, products used in adhesives, water-based paint, textile coatings and paper coatings.

Ethylene Derivatives include Ethylene Oxide (EO), Ethylene Glycol (EG), Ethylene Glycol Ethers and Ethanol. EO is used to produce surfactants, industrial cleaners, cosmetics, emulsifiers, paint, heat transfer fluids and ethylene glycol. EG is used to produce polyester fibers and film, polyethylene terephthalate resin, heat transfer fluids and automobile antifreeze. Ethylene glycol ethers are used to produce paint and coatings, polishes, solvents and chemical intermediates. Ethanol is used as a fuel and a fuel additive and in the production of solvents, as well as household, medicinal and personal care products.

The Company sales it’s PO, its co-products, and its derivatives are made by the Company, Nihon Oxirane (a joint venture of which it owns 40%) and their affiliates directly, and through distributors and independent agents in the Americas, Europe, the Middle East, Africa and the Asia Pacific region. PO, PG and SM are transported by barge, ocean going vessel, pipeline, rail car and tank truck. BDO is primarily transported by tank truck and rail car. Acetic acid and VAM are manufactured at a facility in La Porte, Texas, and are consumed internally, sold worldwide generally under multi-year contracts and sold on a spot basis. Acetic acid and VAM are shipped by barge, ocean going vessel, pipeline, rail car and tank truck. Methanol is produced at a La Porte, Texas facility owned by La Porte Methanol Company, its 85% owned joint venture with Linde. Ethylene oxide (EO) or EO equivalents, and EO’s primary derivative, EG, are produced at a wholly owned facility in Bayport, Texas. The Bayport facility also produces other derivatives of EO, principally glycol ethers. Lyondell Chemical and Bayer also have a 50/50 joint venture, the European PO Joint Venture, for the ownership of the Maasvlakte PO/SM plant near Rotterdam, The Netherlands.

The Company competes with Dow, Shell, Styrolution, Cosmar, Americas Styrenics, Celanese, BP and DuPont

Refining & Oxyfuels Segment

The Company’s Refining & Oxyfuels segment refines heavy, high-sulfur crude oil in the United States. Gulf Coast and produces gasoline blending components at several of its olefin and PO sites. Its Houston refinery, which is located on the Houston Ship Channel in Houston, Texas, has a heavy, high-sulfur crude oil processing capacity of approximately 268,000 barrels per day on a calendar day basis (normal operating basis), or approximately 292,000 barrels per day on a stream day basis (maximum achievable over a 24 hour period). The Refining & Oxyfuels segment also includes gasoline blending components, such as MTBE, ETBE and alkylate. MTBE and ETBE are produced as co-products of the PO and olefin production process at four sites in the United States, France and The Netherlands. It has three sites that can produce either MTBE or ETBE with a combined capacity to produce 59,000 barrels per day of MTBE or ETBE; the Company’s total capacity for MTBE or ETBE production is 75,000 barrels per day. Alkylate is produced at one facility in Texas.

Houston Refinery include gasoline and components, which is used as automotive fuel; ultra low sulfur diesel, which is used as diesel fuel for cars and trucks; jet fuel, which is used as aviation fuel, and lube oils which is used as industrial lube oils, railroad engine additives and white oils for food-grade applications. Gasoline Blending Components include MTBE/ ETBE and alkylate. MTBE is a high octane gasoline blending component; ETBE is an alternative gasoline blending component based on agriculturally produced ethanol. Alkylate is a high octane gasoline blending component.

The Company competes with SABIC, Repsol, Total, Neste and Braskem.

Technology Segment

The Company’s Technology segment develops and licenses chemical, polyolefin and other process technologies and provides associated engineering and other services. Its Technology segment further develops, manufactures and sells polyolefin catalysts. The Company markets its process technologies and its polyolefin catalysts to external customers and also use them in its own manufacturing operations. The Company is a licensor of polyolefin process technologies. Its PP licensing portfolio includes its Spheripol and Spherizone process technologies, as well as Metocene technology. Its PE process licensing portfolio comprises the Lupotech T (high pressure tubular process for producing LDPE), the Lupotech A (autoclave process mainly for producing ethylene vinyl acetate (EVA) copolymers), Hostalen (slurry process for producing multimodal HDPE), and Spherilene (gas phase process for producing full-density range of LLDPE to HDPE) processes. In addition, it licenses a selective portfolio of chemical process technologies in the fields of olefin recovery, olefin conversion, aromatics extraction and acetyls. Its Technology segment also provides technology services to its licensees. Such services include safety reviews, training and start-up assistance, engineering services for process and product improvements and manufacturing troubleshooting. It also offers for licensing a select number of chemical processes, including the group of Trans4m processes, Aromatics extractions, Glacido and Vacido technology. It also offers for licensing a select number of chemical processes, including the group of Trans4m processes, Aromatics extractions, Glacido and Vacido technology.

The Company competes with Dow Chemical, BASF, Mitsui Chemicals, Toho Catalyst and WR Grace.

Company Address

LyondellBasell Industries NV

Groot Handelsgebouw - Entrance A
Stationsplein 45
P: +3110.2755500
F: +3110.2755589

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