Basell: Plans to quit UHMWPE
Thursday, January 24th, 2002Basell is planning to sell its ultra high molecular weight polyethylene business to Polialden Petroquimica of Brazil. Polialden already has UHMWPE interests, alongside being one of the biggest HDPE producers in South America, and plans to set up a new subsidiary in Wilmington, Delaware, USA to run the merged UHMWPE business. Polialden is controlled by Copene, which is owned by Mitsubishi Chemicals and Nissho Iwai of Japan, and is one of the companies which will be merged soon to form the largest petrochemicals company in South America, Braskem. Not included in the sale is Basell’s UHMWPE plant at Lake Charles in the USA. This is to be closed at the end of this month as part of a restructure at Lake Charles, which will also see the mothballing of a polyethylene plant at the end of March because of the US overcapacity in polyethylene. Basell is, however, planning to invest in the two polypropylene plants at Lake Charles to maintain their long term competitiveness.
