German investor buys 50 per cent of LyondellBasell
German investor ProChemie Holding Ltd. has joined with Access Industries, owner of polyolefin supplier LyondellBa...
German investor ProChemie Holding Ltd. has joined with Access Industries, owner of polyolefin supplier LyondellBasell Industries, to create ProChemie GmbH, a joint venture in which each side will own 50 per cent equity in LyondellBasell.
Both sides “will support LyondellBasell’s restructuring process,” officials with the new Oberndorf, Germany-based joint venture said in a statement. The move will have no impact on LyondellBasell’s daily operations or on the Chapter 11 bankruptcy restructuring of its U.S. business, they added.
LyondellBasell’s U.S. operations and one of its European holding companies filed for Chapter 11 bankruptcy protection in January, citing drastic drops in demand for plastics and chemicals. The firm is struggling with a US$23 billion debt load related to Basell NV’s US$19 billion purchase of Lyondell Chemical Co. to form the new entity in late 2007. Access had purchased Basell for almost US$6 billion in 2005.
LyondellBasell posted a loss of US$7.3 billion on sales of US$50.7 billion in 2008.
LyondellBasell is the number one maker of PP in North America and the world, and ranks number two in both high and low density polyethylene in North America.