LyondellBasell Announces Expansion of Propylene Production Capacity at Channelview Complex

LyondellBasell announces a propylene production capacity expansion in Houston, creating jobs and enhancing market stability by 2028.

Quiver AI Summary

LyondellBasell announced plans to expand its propylene production capacity at the Channelview Complex near Houston, with construction set to begin in the third quarter of 2025 and expected to be operational by late 2028. The new unit will add approximately 400,000 metric tons of annual propylene production and create 750 construction jobs, along with 25 permanent positions post-completion. This investment aims to enhance self-sufficiency and meet growing customer demand while mitigating market volatility, ultimately benefiting shareholders. The propylene produced will be used in a variety of essential products, including food packaging and medical devices, reinforcing LyondellBasell's commitment to sustainable innovation in the chemical industry.

Potential Positives

Investment to expand propylene production capacity strengthens LyondellBasell's ability to meet increasing customer demand.
The expansion is expected to reduce exposure to market volatility, positioning the company for consistent returns for shareholders.
Creation of 750 jobs during peak construction and addition of 25 permanent jobs contributes positively to the local economy.
The new metathesis unit will enhance LyondellBasell's core business line, facilitating the production of essential materials used in everyday life.

Potential Negatives

The announcement of a lengthy construction timeline with a projected startup in late 2028 may raise concerns about the company's ability to keep up with increasing market demand in the interim.
The forward-looking statements indicate significant risks and uncertainties that could materially affect the execution and outcomes of the expansion project, potentially alarming investors.
While the expansion will add only 25 permanent jobs, it may be perceived as insufficient given the scale of investment and the temporary boost of 750 jobs during construction.

FAQ

What is the focus of LyondellBasell's recent investment announcement?

LyondellBasell announced an investment to expand propylene production capacity at its Channelview Complex near Houston.

When is the groundbreaking for the new propylene production unit expected?

Groundbreaking and construction are expected to begin in the third quarter of 2025.

How much propylene production capacity will the new unit have?

The new unit will have an annual propylene production capacity of approximately 400 thousand metric tons.

How many jobs will the expansion create?

The project is expected to create 25 permanent jobs and employ 750 people during peak construction.

What are some applications of the products made from the new propylene production?

The products will be used in food packaging, medical devices, automotive components, and more essential materials.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

$LYB Insider Trading Activity

$LYB insiders have traded $LYB stock on the open market 1 times in the past 6 months. Of those trades, 1 have been purchases and 0 have been sales.

Here’s a breakdown of recent trading of $LYB stock by insiders over the last 6 months:

ROBIN W.T. BUCHANAN purchased 5,000 shares for an estimated $380,300

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$LYB Hedge Fund Activity

We have seen 447 institutional investors add shares of $LYB stock to their portfolio, and 614 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

NORGES BANK removed 3,285,688 shares (-75.1%) from their portfolio in Q4 2024, for an estimated $244,028,047
BLACKROCK, INC. added 2,112,257 shares (+9.4%) to their portfolio in Q4 2024, for an estimated $156,877,327
ENSIGN PEAK ADVISORS, INC added 1,522,043 shares (+207.8%) to their portfolio in Q4 2024, for an estimated $113,042,133
FMR LLC removed 1,367,166 shares (-27.5%) from their portfolio in Q4 2024, for an estimated $101,539,418
AMUNDI added 1,260,913 shares (+48.6%) to their portfolio in Q4 2024, for an estimated $93,648,008
JPMORGAN CHASE & CO removed 1,249,171 shares (-23.9%) from their portfolio in Q4 2024, for an estimated $92,775,930
UBS GROUP AG added 1,094,422 shares (+75.0%) to their portfolio in Q4 2024, for an estimated $81,282,721

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Full Release

Houston, March 03, 2025 (GLOBE NEWSWIRE) -- LyondellBasell (NYSE: LYB) today announced an investment to expand propylene production capacity at its Channelview Complex near Houston.

Groundbreaking and construction are expected to begin in the third quarter of 2025, with a projected startup in late 2028. The unit will have an annual propylene production capacity of approximately 400 thousand metric tons, employ 750 people during peak construction and is expected to add 25 permanent jobs.

“This capacity expansion strengthens our ability to meet increasing customer demand and improve our self-sufficiency as we grow and upgrade a core business line for LyondellBasell,” said Kim Foley, LYB executive vice president, Global Olefins & Polyolefins and Refining. “Additionally, it reduces our exposure to market volatility, which positions LYB to provide consistent returns for our shareholders.”

The new metathesis unit will convert ethylene into propylene for use in the production of polypropylene and propylene oxide, which are building blocks for essential materials used in everyday life. End-use-related product lines include food packaging, medical devices, automotive components, aircraft deicing fluid, building insulation, cushions for home furnishings and telecommunications equipment.

ABOUT LYONDELLBASELL
We are LyondellBasell (NYSE: LYB) – a leader in the global chemical industry creating solutions for everyday sustainable living. Through advanced technology and focused investments, we are enabling a circular and low carbon economy. Across all we do, we aim to unlock value for our customers, investors and society. As one of the world's largest producers of polymers and a leader in polyolefin technologies, we develop, manufacture and market high-quality and innovative products for applications ranging from sustainable transportation and food safety to clean water and quality healthcare. For more information, please visit www.LyondellBasell.com or follow @LyondellBasell on LinkedIn.

FORWARD-LOOKING STATEMENTS
The statements in this release relating to matters that are not historical facts are forward-looking statements. These forward-looking statements are based upon assumptions of management of LyondellBasell which are believed to be reasonable at the time made and are subject to significant risks and uncertainties. Actual results could differ materially based on factors including, but not limited to, market conditions, our ability to obtain all necessary regulatory approvals and to successfully construct and operate the proposed facilities described in this release; industry production capacities and operating rates; our ability to successfully execute projects and growth strategies; and general economic conditions in geographic regions or markets served by LyondellBasell or where operations of the company are located. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the "Risk Factors" section of our Form 10-K for the year ended December 31, 2024, which can be found at www.LyondellBasell.com on the Investor Relations page and on the Securities and Exchange Commission's website at www.sec.gov .