The LyondellBasell and Sasol deal is sealed.
With regulatory and shareholder approvals in place, Lyondell will operate the 1.5 million metric ton ethane cracker, the 0.9 million metric ton low-density and linear-low density polyethylene plans and the associated infrastructure in Lake Charles.
The company also will toll manufacture the products on behalf of the two shareholders.
Approximately 400 Sasol Lake Charles employees who directly support the JV assets are now employees of LyondellBasell.
“This transaction accelerates the transformation of our chemicals business toward a focus on specialty chemicals,” said Sasol President and CEO Fleetwood Grobler. “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.”
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, designed to be a more sustainable and resilient business for the long-term.