Basell announced that it will stop producing polypropylene at its Varennes, Quebec site in April 2008. The plant is expected to continue normal operations until the time it ceases production.
Michael Mulrooney, president of Basell North America, said, “Basell has been present in Varennes for thirty years, so this was not an easy decision."
"Although the initial slurry technology was replaced at Varennes in the late 1980s with a single Spheripol process plant, as a stand alone site with small capacity, the operating costs are no longer competitive.”
This past June, Basell announced that it would also stop producing polypropylene at its Sarnia, Ontario site in mid-2008.
Mulrooney explained, “In difficult business climate, economies of scale, along with the ability to produce innovative, differentiated products, are essential for growth and continued success."
"Production will be shifted from our two Canadian facilities to other Basell and Basell-affiliate sites which utilize advanced Spheripol or Spherizone process technologies."
"In addition to being more cost effective, this will also allow us to improve our portfolio of grades and enhance overall product quality which will benefit our customers.”
“We remain committed to serving the Canadian polyolefins market,” added Mulrooney. “Our supply and transportation infrastructure including bulk terminals will be maintained and continue operating to ensure continuity of supply to our customers throughout Canada.”
Basell currently operates two polypropylene lines in Bayport, Texas and is in the process of re-starting a third line at that site. The company also has two polypropylene lines in Lake Charles, Louisiana.
All of these units use Spheripol process technology. Basell’s joint venture in Mexico, Indelpro, operates a Spheripol process line and is building a new 350 KT Spherizone polypropylene plant at Altamira which is scheduled to start up in early 2008.
Basell is the global leader in polyolefins technology, production and marketing. It is the largest producer of polypropylene and advanced polyolefin products; a leading supplier of polyethylene and catalysts, and the industry leader in developing, licensing and providing technical services for polypropylene and polyethylene technologies.
