Basell to shut down polypropylene lines

Advanced Battery Technology, Jan 2001

Basell to Shut Down Polypropylene Lines

Basell NV will temporarily shut down polypropylene production lines in Germany, the United Kingdom, and the U.S. due to a serious supply/demand imbalance in the polypropylene industry.

"We are taking these steps because the excess capacity is causing unacceptable financial losses in Basell's polypropylene business," said Kees Linse, Basell's COO for polypropylene. "Since we do not expect current conditions to change in the near future, we must take action now to bring our business back to profitability and ensure its longterm success."

The shut-downs, totaling annual capacity of 500kT, will be at Wesseling, Germany; Carrington, U.K., and Bayport, Texas. "Production on two Novolen gas phase lines at Wesseling will be shut down for 12 to 18 months," said Robert Genin, president of Basell's European polypropylene business. " The Carrington homopolymer line will go into a prolonged shutdown in January for an undefined period." He said the decision to close the plants was strongly influenced by the sluggish market and the recent addition of new capacity.

Employees who currently work on the lines being shut down will be largely redeployed within the sites so the impact on staff will be minimized. However, the number of contractors employed will be reduced.

Basell is the world's largest producer of polypropylene and a leading producer of polyethylene, advanced polyolefins, and related technologies. Formed in October 2000 through the merger of Elenac, Montell, and Tragor, Basell is a 50-50 joint venture of Shell and BASF. It has more than 9,000 employees and annual revenues of approximately $7 billion Euro.

For more information, visit www.basell.com