Basell to halt PP production in Varennes, Que.

Resin supplier Basell will cease production of polypropylene (PP) at its Varennes, Quebec site in April 2008. The plant is expected to continue normal operations until the time it ceases production, the company said.

Basell has been present in Varennes for thirty years, so this was not an easy decision, said Michael Mulrooney, president of Basell North America. Although the initial slurry technology was replaced at Varennes in the late 1980s with a single Spheripol process plant, as a stand alone site with small capacity, the operating costs are no longer competitive.

This past June, Basell announced that it would also stop producing polypropylene at its Sarnia, Ontario site in mid-2008.

In todays difficult business climate, economies of scale, along with the ability to produce innovative, differentiated products, are essential for growth and continued success, Mulrooney said.

Production will be shifted from Basells remaining Canadian facilities to other Basell and Basell-affiliate sites that utilize advanced Spheripol or Spherizone process technologies. We remain committed to serving the Canadian polyolefins market, added Mulrooney. Our supply and transportation infrastructure including bulk terminals will be maintained and continue operating to ensure continuity of supply to our customers throughout Canada.