Skip to main content
Sister Publication Links
  • Middle East Foam & Polyurethane
  • UTECH Asia/PU China
  • UTECH Europe
  • UTECH Las Americas
Subscribe
  • My Account
  • Login
  • Subscribe
  • Coronavirus
  • News
    • Asia
    • Americas
    • Europe
    • M & A
    • Financial results
    • Automotive
    • Introducing UTECH Southeast Asia 2022
      PU for rechargeable electrostatic face masks
      Stellar Q4 performance saves Wanhua 2020 earnings
      2020 proved fruitful for Vitafoam Nigeria
    • Mlily to increase US market share following anti-dumping duties
      US footwear imports up 25% in November 2020
      Introducing UTECH Southeast Asia 2022
      PPG buys polyurea company Versaflex
    • Bosnian producer to invest in new PU panel factory
      Covestro wins ISCC Plus certificate for Krefeld MDI
      Car sales down 25% in Western Europe in 2020
      Plixxent joins PU Europe
    • PPG buys polyurea company Versaflex
      Recticel buys FoamPartner
      Recticel upgrades Q3 outlook despite raw material tightness
      Covestro broadens PU portfolio with DSM purchase
    • Mlily to increase US market share following anti-dumping duties
      Stellar Q4 performance saves Wanhua 2020 earnings
      2020 proved fruitful for Vitafoam Nigeria
      Perstorp granted new credit facility
    • Car sales down 25% in Western Europe in 2020
      Patchy coronavirus effects hit global car sales in November
      November continues fall in Western Europe's car sales
      Antolin's business improved in Q3 2020
  • Data
  • Information
    • Country Overview
    • Market Sector overviews
    • Technical articles
    • Company profiles and strategies
    • China’s PU industry on the path to recovery; plans for technology upgrades
      Chinese cold chains grow bigger
      Flexible foam rises to challenges in the Middle East and Africa
      Life at the cross-roads: what does the GCC offer PU?
    • Europe's flexible foam makers face rising prices as outages hit markets
      Western European car registrations rebound slowed in September
      Western European car registrations regained some ground in August
      Western European Car registrations rebound continued in July
    • Take out the VOC with hybrid release agents
      Batteries give pultrusions power
      Seeing a way through VOC and FOG
      Aromatic polyols for simpler rigid PU formulations
    • Hennecke and Frimo: an automotive partnership
      Pushing ahead: AutoRIM drives KM’s UK growth
      BASF opens it first ‘Creation Center’ in Mumbai with a PU twist
      Persistence pays off for CTM
  • Events
    • Exhibitions
    • Conferences
    • Webinars / Livestreams
    • Become a Speaker
  • Advertise
  • Contact Us
  • Issues
  • Subscribe
MENU
Breadcrumb
  1. Home
  2. News
May 21, 2009 12:00 AM

German investor buys 50 percent of LyondellBasell

Utech Staff
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    By Frank Esposito, Plastics News Staff

    Rotterdam, The Netherlands -- LyondellBasell Industries, the world's largest polyolefins maker, has gained an additional owner in German investor Andreas Heeschen.

    Heeschen's ProChemie Holding Ltd has joined with LyondellBasell owner Access Industries to create ProChemie GmbH, a joint venture in which each side will own 50 percent equity in LyondellBasell.

    Both sides "will support LyondellBasell's restructuring process," officials with the new Oberndorf, Germany-based JV said in a statement. The move will have no impact on LyondellBasell's daily operations or on the Chapter 11 bankruptcy restructuring of its US business, officials added.

    LyondellBasell's US 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 massive $23 000 million debt load connected to Basell NV's $19 000 million purchase of Lyondell Chemical Co. to form the new entity in late 2007. Access had purchased Basell for almost $6000 million in 2005.

    As well as its giant polyolefins business, LyondellBasell is also the world's largest producer of propylene oxide, used to make polyols for the polyurethanes sector.

    Heeschen is also primary owner of firearms maker Heckler & Koch of Oberndorf. A spokeswoman said that Heeschen and ProChemie "sees value in LyondellBasell's equity and in the chemical sector in general."

    New York-based Access is controlled by Russian billionaire Len Blavatnik, who in January said that LyondellBasell "is still very valuable if the economy recovers."

    Last month, officials with LyondellBasell - based in Rotterdam, the Netherlands - said it needed to cut $700 million in fixed costs by the end of 2010. It will do so by closing at least 10 manufacturing plants and 20 offices and research sites and by cutting 3000 jobs.

    Most recently, the firm announced the closing of a 480 million pound-capacity plant making high density polyethylene in Alvin, Texas. Since early 2008, LyondellBasell also has closed polypropylene plants in Sarnia, Ontario, and Varennes, Quebec, and LDPE plants in Bayport, Texas, and Fos-sur-Mer, France.

    In a bankruptcy court affidavit, chemicals division president Edward Dineen said that the merger that created LyondellBasell was achieved using 100 percent debt financing.

    "Between this and the retained debt, the combined company began 2008 with a very substantial debt load," he said. "For the company to reduce its debt load, it was critical to have a strong first year to immediately begin reducing this debt level. This did not happen for a number of reasons.''

    LyondellBasell posted a loss of $7300 million on sales of $50 700 million in 2008.

    "

    Recommended for You
    Bosnian producer to invest in new PU panel factory
    Bosnian producer to invest in new PU panel factory
    Mlily to increase US market share following anti-dumping duties
    Mlily to increase US market share following anti-dumping duties
    Covestro wins ISCC Plus certificate for Krefeld MDI
    Covestro wins ISCC Plus certificate for Krefeld MDI
    Latest Issue
    Click HERE for Free Download
    View All Archives
    Get our newsletters

    Breaking news and in-depth coverage of essential topics delivered straight to your inbox.

    Subscribe today

    Register to access our archive of leading information on the polyurethanes industry.

    Subscribe now
    Connect with Us
    • Twitter
    • LinkedIn
    • Facebook
    • Youtube

    Follow us on social media for the latest polyurethanes industry news and event updates.

    Logo
    Contact Us

    Office 127,
    61, Willow Walk,
    London
    SE1 5SF
    E-mail us
    +44 (0) 203 287 5979

    Customer Service:
    +1 313 446 0450

    Resources
    • Advertise with Us
    • Media Kit
    • Staff
    • Careers
    • Ad Choices Ad Choices
    • Sitemap
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • Coronavirus
    • News
      • Asia
      • Americas
      • Europe
      • M & A
      • Financial results
      • Automotive
    • Data
    • Information
      • Country Overview
      • Market Sector overviews
      • Technical articles
      • Company profiles and strategies
    • Events
      • Exhibitions
      • Conferences
      • Webinars / Livestreams
      • Become a Speaker
    • Advertise
    • Contact Us
    • Issues
    • Subscribe