On June 30, 2021, LyondellBasell, one of the largest chemicals, plastics and refining companies in the world, announced 100 percent takeover of PolyPacific Polymers Sdn. Bhd. (PPM) in Port Klang, Malaysia. PPM holds 25 KT capacity engaged in the production of modified and reinforced polyolefin compounds.
As soon the acquisition completes, the manufacturing site will undergo complete transition involving change in brand name and its employees will become LyondellBasell’s employees. The business products will continue to be produced and supplied by PPM.
As per the LyondellBasell will be exiting the PolyPacific, a 50:50 joint venture, which will become completely owned by Mirlex Australia Pty Ltd.
In the company’s last earnings call, the company expressed hopes of operating at its full capacity to meet the strong global demand as the industry continues to grapple with low inventories and maintenance shutdowns. Polyethylene (PE) market in North America is anticipated to grow strongly as various U.S. producers are looking forward to replenishing inventories to cope with the order backlogs and meet rising export demand.
Jim Guilfoyle, LyondellBasell’s executive Vice President for Advanced Polymer Solutions and the supply chain, said, “We admire PolyPacific for the business and reputation they established over the past four decades, and wish them well as they continue to operate their Australian compounding business in Melbourne. We are excited to capture the value of PPM within our APS Asian footprint.”
Shares of LyondellBasell zoomed to 54.4% in early July, on year-on-year basis. In H2 of 2021, the company is expecting improved demand for gasoline and jet fuel with increased mobility and high margins for its refining, oxyfuels & related business products. The company is also eyeing on healthy margins in Q2 2021 due to stabilizing of feedstock costs and increasing profitability in its Advanced Polymer Solutions segment. The company is also strategizing to cut its debt in the near future.