By Martin Mou

LyondellBasell Industries NV (LYB) and China Petroleum & Chemical Corp. (600028.SH), known as Sinopec, have signed a memorandum of understanding to establish a joint venture to produce chemicals in China.

The 50-50 joint venture will construct a new unit to produce propylene oxide and styrene monomer in Ningbo, China, to serve the country's domestic market, the companies said in a joint statement on Monday.

The companies plan to begin construction of the new facility, their second in the same location, in early 2020, with start-up expected in 2022.

LyondellBasell Chief Executive Bob Patel said the new joint venture aims to meet the growing demand for construction materials, packaging and furnishings in China.

Write to Martin Mou at martin.mou@wsj.com

(END) Dow Jones Newswires

December 23, 2019 22:05 ET (03:05 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.
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