HOUSTON and JOHANNESBURG, Dec. 2,
2020 /CNW/ -- LyondellBasell (NYSE: LYB), one of the largest
plastics, chemicals and refining companies in the world, and Sasol
(JSE: SOL, NYSE: SSL), a global integrated chemicals and energy
company, today announced the closing of their Louisiana-based Integrated Polyethylene Joint
Venture (JV) transaction following required regulatory and
shareholder approvals. The 50/50 JV includes a 1.5 MM ton ethane
cracker, 0.9 MM ton low-density and linear-low density polyethylene
plants, and associated infrastructure near Lake Charles, La, and will toll manufacture
the products on behalf of the two shareholders.
Under the terms of the transaction agreements, LyondellBasell
will operate the three assets on behalf of the JV and market the
polyethylene products on behalf of the two shareholders of the JV.
Approximately 400 Sasol Lake Charles employees who directly support
the JV assets are now employees of LyondellBasell.
"The formation of this JV is part of our approach to growing our
core businesses while positioning the company to benefit from
improving economic conditions," said Bob
Patel, CEO of LyondellBasell. "We believe our ability to
operate efficiently and serve growing markets will create
exceptional long-term value for our shareholders of both companies.
We welcome our new JV employees to the LyondellBasell
family."
"This transaction accelerates the transformation of our
chemicals business toward a focus on specialty chemicals," said
Fleetwood Grobler, Sasol President
and Chief Executive Officer. "We're proud of the world-scale assets
we've built in Southwest Louisiana
and look forward to working with LyondellBasell to realize their
full potential and create value for all our stakeholders. We also
extend our best wishes and gratitude to our colleagues who are
transferring to LyondellBasell to operate the joint venture
assets."
The formation of this JV with Sasol aligns with LyondellBasell's
strategy of investing in high-quality assets in growing markets or
feedstock advantaged regions. In September
2020, LyondellBasell established a 50/50 JV with
China's Liaoning Bora Enterprise
Group to start up and operate a new, large petrochemical complex in
northeast China. Taken together,
the Bora and Sasol JVs are equivalent to the full capacity and
immediate financial benefits of a new and operational world-scale
integrated cracker complex.
This transaction is a significant step for Sasol in achieving
its financial and strategic objectives toward creating Future
Sasol, which will be a more sustainable and resilient business for
the long-term.
Issued by:
Sasol Media Relations
In South Africa:
Matebello Motloung, Manager: Group Media Relations
Direct telephone: +27 (0) 10 344 9256; Mobile: +27 (0) 82 773
9457
matebello.motloung@sasol.com
Alex Anderson, Senior Manager:
Group External Communication
Direct telephone: +27 (0) 10 344 6509; Mobile: +27 (0) 71 600
9605;
alex.anderson@sasol.com
In the U.S.:
Kim Cusimano, Americas Corporate
Affairs
Direct telephone: +1 (225) 776 0758
kim.cusimano@us.sasol.com
LyondellBasell Media Relations
Phone: +1 713 309 7575
Email: mediarelations@lyb.com
About LyondellBasell
LyondellBasell (NYSE: LYB) is one
of the largest plastics, chemicals and refining companies in the
world. Driven by its employees around the globe, LyondellBasell
produces materials and products that are key to advancing solutions
to modern challenges like enhancing food safety through lightweight
and flexible packaging, protecting the purity of water supplies
through stronger and more versatile pipes, improving the safety,
comfort and fuel efficiency of many of the cars and trucks on the
road, and ensuring the safe and effective functionality in
electronics and appliances. LyondellBasell sells products into more
than 100 countries and is the world's largest producer of polymer
compounds and the largest licensor of polyolefin technologies. In
2020, LyondellBasell was named for the third consecutive year to
Fortune magazine's list of the "World's Most Admired Companies."
More information about LyondellBasell can be found
at www.LyondellBasell.com.
About Sasol
Sasol is a global integrated chemicals and
energy company spanning 30 countries. Through our talented people,
we use selected technologies to safely and sustainably source,
manufacture and market chemical and energy products
globally. More information about Sasol can be found at
www.Sasol.com.
Cautionary Note Regarding Forward-looking Statements for
LyondellBasell
The statements in this release relating to matters that are not
historical facts are forward-looking statements. These
forward-looking statements are based upon assumptions of management
of LyondellBasell which are believed to be reasonable at the time
made and are subject to significant risks and uncertainties. Actual
results could differ materially based on factors including, but not
limited to, market conditions, the business cyclicality of the
chemical, polymers and refining industries; the availability, cost
and price volatility of raw materials and utilities, particularly
the cost of oil, natural gas, and associated natural gas liquids;
our ability to achieve expected synergies from the Louisiana and Bora joint ventures; the
completion of the acquisition of joint venture assets in the future
and ability to recognize the anticipated benefits thereof;
uncertainties related to the extent and duration of the
pandemic-related decline in demand, or other impacts due to the
COVID-19 pandemic in geographic regions or markets served by us, or
where our operations are located, including the risk of prolonged
recession; future financial and operating results; risks and
uncertainties posed by international operations, including foreign
currency fluctuations; and our ability to comply with debt
covenants and to amend, extend, repay, service, and reduce our
debt. Additional factors that could cause results to differ
materially from those described in the forward-looking statements
can be found in the "Risk Factors" sections of our Form 10-K for
the year ended December 31, 2019, and
our Forms 10-Q for the quarters ended March
31, 2020, and September 30,
2020, which can be found at www.LyondellBasell.com on the
Investor Relations page and on the Securities and Exchange
Commission's website at www.sec.gov. There is no assurance that any
of the actions, events or results of the forward-looking statements
will occur, or if any of them do, what impact they will have on our
results of operations or financial condition. Forward-looking
statements speak only as of the date they were made and are based
on the estimates and opinions of management of LyondellBasell at
the time the statements are made. LyondellBasell does not assume
any obligation to update forward-looking statements should
circumstances or management's estimates or opinions change, except
as required by law.
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SOURCE LyondellBasell; Sasol Limited