NEW YORK, Dec. 8, 2011 /PRNewswire/ -- LyondellBasell (NYSE: 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 www.lyondellbasell.com/investorpresentations.
"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 (NYSE: 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 www.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.