Basell to end PP production in Sarnia in 2008

Basell, the world’s largest producer of polyproylene (PP), has announced that it will stop producing PP in Sarnia, Ont. in mid-2008. Normal operations are expected to continue at the facility until the company decides to cease operations.

“When the Sarnia plant began operation in 1978, it was one of the last plants to be built in North America with old generation slurry process technology,” said Basell North America president Michael Mulrooney in a statement. “Annual production has averaged only 100 KT the past two years, and the reality is that the operating costs there are no longer competitive.”

Basell has an annual PP production capacity of 7,600 KT. The company operates two PP lines in Bayport, Tex., and is in the process of re-starting a third line at the site. The company also has two PP lines in Lake Charles, Louisiana, and one in Varennes, Que., all of which use the Spheripol process technology. The company’s Mexican joint venture, Indelpro, is building a new 350 KT Spherizone PP plant at Altamira, which is scheduled to start up in early 2008.

“Production will be shifted to other Basell sites which use more advanced Spheripol or Spherizone process technologies,” noted Mulrooney. “In addition to being more efficient, this will allow us to upgrade product quality which will benefit our customers.”