Innovative joint venture marks the first time that a major plastics and chemicals company has partnered with a leader in resource management to contribute to circular economy objectives
Rotterdam, Netherlands and Paris /PRNewswire/ - LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, and SUEZ, a global leader in smart, sustainable resource management, today announced the successful completion of a transaction making each company a 50 / 50 partner in Quality Circular Polymers (QCP), a premium plastics recycling company in Sittard-Geleen, the Netherlands.
"Partnering with SUEZ allows us to contribute to the circular economy in a way that no plastics company has before," said LyondellBasell CEO Bob Patel. "For several years, we have seen increased demand for recycled and reused plastics, especially in Europe. With QCP, we have combined our respective expertise with SUEZ to create an innovative system that can be scaled as the circular economy grows."
"The circular economy will increasingly develop into a critical part of the plastic value chain. Moving forward, we will bear in mind the economics of operating our businesses must be balanced with environmental awareness," said SUEZ CEO Jean-Louis Chaussade. "As we move towards becoming value players in the circular economy, we will continue to seek opportunities for future growth."
The joint business will leverage the two partners' strengths. SUEZ will utilize its leading-edge technology solutions to improve the identification, separation and preparation of materials to be used as feedstock at QCP. LyondellBasell will apply its long-standing leadership in innovative plastic production technology, vast experience in product development and deep knowledge of important end markets such as consumer goods, where the company has a strong presence.
The QCP plant located in Sittard-Geleen will transform used plastic material into virgin-replacement quality PE and PP materials. The plant is capable of converting consumer waste into 25,000 tons of polypropylene (PP) and high-density polyethylene (HDPE) with an objective of 35,000 tons later in 2018 and 100,000 tons by 2020. The production capacity of the plant will address a growing need for improving the sustainability profile of high-quality plastics in Europe.
LyondellBasell will add QCP's recycled products to its range of existing PE and PP materials to help meet increasing customer demand and in line with the EU's Plastics Strategy.
Plastics recycling is also a key market for SUEZ, which operates nine dedicated facilities in Europe. In 2017, SUEZ processed 400,000 tons of plastic waste and produced 150,000 tons of new plastic resources. The company has set an objective of increasing its processing capacity by 50 percent to 600,000 tons in 2020.
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,400 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies. In 2018, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
With 90,000 people on the five continents, SUEZ is a world leader in smart and sustainable resource management. We provide water and waste management solutions that enable cities and industries optimize their resource management and strengthen their environmental and economic performances, in line with regulatory standards. To meet increasing demands to overcome resource quality and scarcity challenges, SUEZ is fully engaged in the resource revolution. With the full potential of digital technologies and innovative solutions, the Group recovers 17 million tons of waste a year, produces 3.9 million tons of secondary raw materials and 7 TWh of local renewable energy. It also secures water resources, delivering wastewater treatment services to 58 million people and reusing 882 million cubic meters of wastewater. SUEZ generated total revenues of 15.9 billion euros in 2017.
Cautionary Note Regarding Forward-looking Statements
The statements in this communication relating to matters that are not historical facts are forward-looking statements. These forward-looking statements are based upon assumptions of management 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, the business cyclicality of the chemical, polymers and refining industries; the availability, cost and price volatility of raw materials and utilities, particularly the cost of oil, natural gas, and associated natural gas liquids; competitive product and pricing pressures; labor conditions; our ability to attract and retain key personnel; operating interruptions (including leaks, explosions, fires, weather-related incidents, mechanical failure, unscheduled downtime, supplier disruptions, labor shortages, strikes, work stoppages or other labor difficulties, transportation interruptions, spills and releases and other environmental risks); the supply/demand balances for our and our joint ventures' products, and the related effects of industry production capacities and operating rates; our ability to achieve expected cost savings and other synergies; our ability to successfully execute projects and growth strategies; legal and environmental proceedings; tax rulings, consequences or proceedings; technological developments, and our ability to develop new products and process technologies; potential governmental regulatory actions; political unrest and terrorist acts; risks and uncertainties posed by international operations, including foreign currency fluctuations; and our ability to comply with debt covenants and service our debt. 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, 2017, 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.
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