2004/3/29 Lyondell

Lyondell and Millennium Announce Agreement to Combine
http://www.lyondell.com/

Lyondell Chemical Company (NYSE: LYO) and Millennium Chemicals Inc. (NYSE: MCH) today announced that their Boards of Directors have approved, and the companies have executed, a definitive agreement for a stock-for-stock business combination of the companies, expected to be tax-free to the shareholders of Millennium and the companies. The transaction will create North America's third-largest independent, publicly traded chemical producer with combined pro forma 2003 revenues of more than $11 billion and market capitalization of nearly $4 billion.

Millennium shareholders will receive between 0.95 and 1.05 shares of Lyondell common stock for each share of Millennium common stock, depending on the volume-weighted average price for the Lyondell shares for the 20 trading days ending on the third trading day before closing. Millennium shareholders will receive 0.95 shares of Lyondell stock if the average Lyondell stock price is $20.50 or greater, and 1.05 if it is $16.50 or less. Between the two prices, the exchange ratio varies proportionately.

The new shares will be entitled to receive the same cash dividend as existing outstanding Lyondell shares. Based on recent trading, the transaction is valued at approximately $2.3 billion including approximately $1.3 billion of Millennium net debt.

The transaction is subject to customary conditions including approval by both companies' shareholders, and is expected to close in the third quarter of 2004.

After the close of the transaction, the company will be called "Lyondell Chemical Company" and will be headquartered in Houston, Texas. Dan F. Smith will continue as president and chief executive officer, and Dr. William T. Butler will continue as the independent chairman of the Lyondell Board of Directors. Two independent members of Millennium's current Board will join the Lyondell Board, effective at the time of the closing.

The transaction combines two U.S. chemical companies that are well positioned globally, with leading positions in propylene oxide and derivatives, titanium dioxide (TiO2) and acetyls. And, through their Equistar joint venture -- a major North American producer of ethylene, propylene, polyethylene and aromatics -- they have significant leverage to the petrochemical cycle, providing opportunity for the combined company's shareholders to take full advantage of the recovery in the petrochemical cycle. The combined company will operate in 16 countries and employ about 10,000 people worldwide.

"Since its creation in 1985, Lyondell has become a leading, global, integrated chemical company with world-scale assets and proprietary processes and technology," said Dan F. Smith, Lyondell's president and chief executive officer. "We have a long history of successfully combining assets, product lines and corporate cultures to create one of the world's leading chemical companies. Despite the prolonged industry trough, Lyondell and Equistar combined finished 2003 with more than $1.3 billion of liquidity. We expect this transaction to be accretive to Lyondell's earnings per share in 2005.

"This is another step in our long-standing strategy to increase Lyondell's global depth and breadth, and maintains our leverage to the ethylene cycle, allowing us to use the resulting cash flow to reduce debt," added Smith. "By integrating Millennium's operations with Lyondell's and Equistar's, we believe there is value that can be achieved through the realization of synergies. We expect to realize at least $50 million in cost savings from this combination, bringing value to all of the shareholders."

Robert E. Lee, president and chief executive officer of Millennium, said, "This is the right move at this juncture for Millennium. The transaction creates compelling value for our shareholders. We strongly believe that the added diversification and market leadership brought by the TiO2 and acetyls businesses will greatly benefit the combined entity. These businesses also will benefit from being part of a larger global entity."

Millennium is the second-largest producer of TiO2 in the world, in an industry in which the five largest producers represent approximately 75 percent of worldwide capacity. Millennium has a larger geographic footprint than any other TiO2 producer, with competitive production facilities on four continents. The TiO2 business has a strong technology and customer base.

The acetyls business is a significant ethylene consumer and, as such, integrates very well with Equistar's petrochemical business. Millennium holds the number-two North American capacity position for acetyls and is number three in the world. Millennium utilizes proprietary, advantaged technology at its world-scale manufacturing facility in La Porte, Texas.

"After the closing of the transaction, Lyondell will appear much less complicated to our investors with its consolidated petrochemicals, polymers and intermediate chemicals businesses. In the new organization, however, Lyondell, Equistar and Millennium will each remain separate entities and keep their separate debt structures," Smith said.

The transaction involves the merger of a newly created subsidiary of Millennium into Millennium, in which the Millennium common stock now held by its public shareholders will be converted into common stock of Lyondell, and the Millennium preferred stock to be issued to Lyondell immediately before the merger will be converted into common stock of the surviving entity. As a result, Millennium will become a wholly owned subsidiary of Lyondell. Following the transaction, the Millennium convertible debentures will become convertible into Lyondell common stock in accordance with the terms of the convertible debenture indenture.

Citigroup Global Markets Inc. acted as financial advisor and provided a fairness opinion to Lyondell. J.P. Morgan Securities Inc. acted as principal financial advisor to Millennium, and along with UBS Investment Bank, each has provided a fairness opinion to Millennium. Baker Botts L.L.P. is legal counsel to Lyondell, and Weil, Gotshal & Manges LLP is legal counsel to Millennium.

Lyondell, headquartered in Houston, Texas, is a leading producer of: propylene oxide (PO); PO derivatives including propylene glycol (PG), butanediol (BDO) and propylene glycol ethers (PGE); and styrene monomer and MTBE as co-products of PO production. Through its current 70.5 percent interest in Equistar Chemicals, LP, Lyondell also is one of the largest producers of ethylene, propylene and polyethylene in North America and a leading producer of ethylene oxide, ethylene glycol, high value-added specialty polymers and polymeric powder. Through its 58.75 percent interest in LYONDELL-CITGO Refining LP, Lyondell is one of the largest refiners in the United States processing extra heavy Venezuelan crude oil to produce gasoline, low sulfur diesel and jet fuel.

Millennium is the second-largest producer of TiO2 in the world, the largest merchant seller of titanium tetrachloride and a major producer of zircon and zirconia, silica gel and cadmium-based pigments. It also is the second-largest producer of acetic acid and vinyl acetate monomer in North America, and a leading producer of terpene-based fragrance and flavor chemicals. Millennium currently has a 29.5 percent interest in Equistar.

Table 1: Lyondell and Equistar Liquidity at December 31, 2003
　　　　　　　　　　　　　　　　(Millions of dollars)

Table 2: Millennium Net Debt at December 31, 2003
　　　　　　　　　　　　　(Millions of dollars)

Attachment 1: Capacities and Major Positions

Lyondell Intermediate Chemicals & Derivatives Capacities

Equistar Capacities

Millennium Capacities

==========================================================================

Attachment 2: Principal Products

Lyondell Intermediate Chemicals & Derivatives Principal Products

Equistar Principal Products

Millennium Principal Products

==========================================================================

Attachment 3: Manufacturing Locations

Lyondell Intermediate Chemicals & Derivatives Manufacturing Locations

Equistar Manufacturing Locations

Millennium Manufacturing Locations

Lyondell 2004/10/4

Lyondell and Millennium Announce Expected Closing Date for Proposed Business Combination Transaction
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Lyondell Chemical Company (NYSE: LYO) and Millennium Chemicals Inc. (NYSE: MCH) today announced that they expect their proposed business combination transaction to close December 1, 2004.

The companies have set November 30, 2004 as the date for their respective special shareholder meetings to consider the proposed transaction and, assuming shareholder approval, the transaction is expected to close the following day. The registration statement was declared effective October 1, 2004, and shareholders of record at the close of business on Thursday, October 14, 2004 will be entitled to notice of and to vote at the special meetings.

The companies today are giving the New York Stock Exchange the required 10 days' advance notice of the record date. Once the record date has passed, they will print and mail the joint proxy statement to Lyondell and Millennium shareholders and provide adequate time for shareholder consideration of the proposal.

The proposed transaction is a stock-for-stock business combination of the companies which will create North America's third-largest independent, publicly traded chemical producer with combined pro forma 2003 revenues of more than $11 billion and market capitalization of $5.5 billion.

After the close of the proposed transaction, the company will be called "Lyondell Chemical Company" and will be headquartered in Houston, Texas.

ABOUT LYONDELL
Lyondell, headquartered in Houston, Texas, is a leading producer of: propylene oxide (PO); PO derivatives including propylene glycol (PG), butanediol (BDO) and propylene glycol ethers (PGE); and styrene monomer and MTBE as co-products of PO production. Through its current 70.5 percent interest in Equistar Chemicals, LP, Lyondell also is one of the largest producers of ethylene, propylene and polyethylene in North America and a leading producer of ethylene oxide, ethylene glycol, high value-added specialty polymers and polymeric powder. Through its 58.75 percent interest in LYONDELL-CITGO Refining LP, Lyondell is one of the largest refiners in the United States processing extra heavy Venezuelan crude oil to produce gasoline, low sulfur diesel and jet fuel.

ABOUT MILLENNIUM
Millennium is the second-largest producer of TiO2 in the world, the largest merchant seller of titanium tetrachloride and a producer of silica gel and cadmium-based pigments. It also is the second-largest producer of acetic acid and vinyl acetate monomer in North America, and a leading producer of terpene-based fragrance and flavor chemicals. Millennium currently has a 29.5 percent interest in Equistar.

2004/12/1 Lyondell

Lyondell Completes Acquisition of Millennium Chemicals
http://www.lyondell.com/html/news/press_kit.shtml

Creates North America’s third-largest independent, publicly traded chemical producer
2003 pro forma revenues of $11.4 billion
Two new directors appointed to Lyondell Board

Lyondell Chemical Company (NYSE:LYO) today announced that it has completed its acquisition of Millennium Chemicals Inc. Shareholders of both companies approved the proposed transaction in special meetings and the closing was effective after the close of New York Stock Exchange trading on November 30, 2004.

The transaction creates North America’s third-largest independent, publicly traded chemical company with consolidated pro forma 2003 revenues of $11.4 billion and current market capitalization of more than $6.5 billion. Based on chemical sales, Lyondell is now the world’s seventh-largest independent chemical company.

Millennium stock ceased trading at the close of business on November 30, 2004. Millennium stockholders became Lyondell stockholders when the transaction closed, and are receiving 0.95 of a Lyondell share for every Millennium share they hold. The new shares will be entitled to receive the same annual cash dividend as existing outstanding Lyondell shares, which currently is $0.90 per share, on dividends declared after the closing of the transaction.

Based on recent trading, the equity value of the transaction is approximately $1.6 billion plus approximately $1.1 billion of Millennium net debt.

The company will operate as Lyondell Chemical Company with headquarters in Houston, Texas. Lyondell now operates on five continents and employs approximately 10,000 people worldwide. With the completion of the transaction, both Millennium and Equistar Chemicals are now wholly owned subsidiaries of Lyondell. In the new organization, however, Lyondell, Equistar and Millennium each will remain separate legal entities and keep their separate debt structures.

Lyondell now has leading global positions in propylene oxide and derivatives, plus titanium dioxide (TiO2), as well as leading North American positions in ethylene, propylene, polyethylene, aromatics, acetic acid and vinyl acetate monomer.

“Lyondell has achieved the global depth and breadth necessary for long-term success in the global chemical industry,” said Dan F. Smith, president and CEO of Lyondell. “Operationally, Equistar has been an integrated part of the Lyondell enterprise since its inception. But now, because we will report consolidated earnings for three wholly owned businesses, the true size of the Lyondell enterprise will be more apparent.

“The transaction has been structured so that Lyondell investors, including those who previously were Millennium shareholders, maintain all the benefits of the cyclical upturn,” added Smith. “As the entities generate cash, our priority remains debt reduction.”

In conjunction with the transaction, the Lyondell Board of Directors appointed two additional members. Worley H. Clark, Jr. served as Chairman of the Board of Directors of Millennium beginning in 2003, and was president and CEO of Nalco Chemical Company from 1982 until his retirement in 1994. David J.P. Meachin served as a director of Millennium beginning October 1996, and has been Chairman and Chief Executive of Cross Border Enterprises, L.L.C., a private international merchant banking firm, since its formation in 1991.

As of December 1, former Millennium investors who now are Lyondell shareholders may reach Lyondell’s Investor Relations Department by calling 1-713-309-4590 and may obtain additional information through Lyondell’s Investor Relations website at www.lyondell.com.

Additional resources for the press, including downloadable photos and executive biographies, are available at www.lyondell.com/presskit.

2005/10/19 Lyondell

Lyondell to Permanently Cease TDI Production at Lake Charles Plant
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Lyondell Chemical Company (NYSE: LYO) announced today that it will permanently cease toluene diisocyanate (TDI) production at its Lake Charles, La., plant. On September 20, 2005, Lyondell announced an indefinite suspension of production at the 300 million pound per year TDI facility while the company evaluated the long-term prospects for the plant.

"Based on our evaluation of future plant capital requirements, high energy and raw materials costs and poor projected industry utilization, we do not expect the Lake Charles TDI business will return to profitability," said Ed Dineen, senior vice president, Chemicals and Polymers. "Hurricane Rita contributed to the decision, as it damaged the plant and contributed to increased energy costs."

Lyondell has approximately 280 employees at this plant. Efforts will be made to reduce the impact to employees, which is expected to include redeployment opportunities or severance benefits.

In the third quarter 2005, the company will recognize a pre-tax, non-cash charge of $195 million for impairment of the carrying value of the plant and related assets. In addition, in subsequent periods, the company expects to incur various costs, including employee termination benefits of approximately $20 million, approximately $35 million associated with plant decommissioning and demolition, and approximately $10 million for contract terminations.

Lyondell acquired the TDI plant as part of its 1998 acquisition of ARCO Chemical Company. ARCO Chemical had purchased the plant from Olin Corporation in December 1996.

Toluene diisocyanate is used in the production of polyurethanes for flexible foam applications, including consumer goods, transportation and packaging. TDI also is used in the manufacture of coatings, sealants, adhesives and elastomers.

ABOUT LYONDELL

Lyondell Chemical Company, headquartered in Houston, Texas, is North America's third-largest independent, publicly traded chemical company. Lyondell is a major global manufacturer of basic chemicals and derivatives including ethylene, propylene, titanium dioxide, styrene, polyethylene, propylene oxide and acetyls. It also is a significant producer of gasoline blending components. The company has a 58.75 percent interest in Lyondell- Citgo Refining LP, a refiner of heavy, high-sulfur crude oil. As a result of Lyondell's November 30, 2004, acquisition of Millennium Chemicals Inc., Millennium and Equistar Chemicals, LP are wholly owned subsidiaries of Lyondell. Lyondell is a global company operating on five continents and employs approximately 10,000 people worldwide.

2007/2/20 Lyondell

Lyondell Announces Approval for New Chemical Facility in Ningbo, China

Lyondell Chemical Company announced today that it and Sinopec Zhenhai Refining & Chemical Co., Ltd. (ZRCC) have received final government approval for a project to construct a world-scale propylene oxide / styrene monomer (POSM) manufacturing facility in Ningbo, China, across the Hangzhou Bay from Shanghai. The project is a partnership between Lyondell and ZRCC, and the companies expect that this plant will be one of the lowest-cost POSM plants in the world, capitalizing on Lyondell's industry-leading POSM technology, both companies' operating experience and raw materials provided by ZRCC's future olefins plant in Ningbo.

Lyondell will contribute its POSM technology and its overall operating and technical experience in exchange for a share of the propylene oxide (PO) profitability from the plant. The parties will jointly market all of the PO manufactured by the new facility. The companies expect to complete construction in 2009.

Along with Lyondell's POSM plants near Houston and Rotterdam, the Ningbo facility will top the list of the world's largest POSM assets. The new plant will have an annual design capacity of 274,000 metric tons (604 million pounds) of PO and 602,000 metric tons (1.3 billion pounds) of styrene. Lyondell estimates that worldwide demand for PO was approximately 6.5 million metric tons (14.3 billion pounds) in 2006.

"With demand for propylene oxide in China growing rapidly, this world- scale plant with its leading technology and ideal location on the eastern coast of China provides a perfect platform for Lyondell and ZRCC to serve the region," said Dan Smith, Lyondell's president and CEO. "ZRCC currently operates the largest and most efficient refinery in China, and we are pleased to be a part of a site that will soon become one of the largest integrated petrochemical complexes in the region." In November 2006, ZRCC broke ground on a new 1 million ton-per-year olefins complex on the site.

Smith added, "With this project, we are expanding our position in an important market and continuing to grow efficiently in a manner consistent with our financial strategy and commitment to debt reduction."

Lyondell is the world's PO technology leader with more than 40 years of experience. This project enhances Lyondell's presence in the Asia-Pacific region, which already includes:

About Lyondell

Lyondell Chemical Company, headquartered in Houston, Texas, is North America's third-largest independent, publicly traded chemical company. Lyondell is a leading global manufacturer of chemicals and plastics, a refiner of heavy, high-sulfur crude oil and a significant producer of fuel products. Key products include ethylene, polyethylene, styrene, propylene, propylene oxide, titanium dioxide, gasoline, ultra low-sulfur diesel, MTBE and ETBE. Lyondell operates on five continents and employs nearly 11,000 people worldwide.

2007/2/26　Lyondell

Lyondell Chemical Company Announces Sale of Inorganic Chemicals Business to National Titanium Dioxide Company Ltd. (Cristal)

Lyondell Chemical Company and the National Titanium Dioxide Company Ltd. (Cristal), today announced that they have signed an agreement for a proposed sale by Lyondell of its worldwide inorganic chemicals business to Cristal in a transaction valued at approximately $1.2 billion, including the assumption of certain liabilities directly related to the business. Cristal is a global producer of titanium dioxide exporting to more than 70 countries. Lyondell stated that the transaction would include a cash payment of $1.05 billion, and estimated its after-tax proceeds at $975 million.

"This transaction would allow us to accelerate our debt repayment and focus our resources on capturing the synergies between our refinery and our chemicals business to achieve the greatest value for our shareholders," said Dan F. Smith, president and CEO of Lyondell.

Lyondell's Millennium Inorganic Chemicals subsidiary is the world's second-largest producer of titanium dioxide with an annual capacity of 670,000 metric tons. Titanium dioxide is a white pigment commonly used in such consumer products as paint, toothpaste and sunblock.

Lyondell acquired the inorganic chemicals business in its 2004 acquisition of Millennium Chemicals Inc. The other businesses acquired in the 2004 Millennium purchase (e.g., acetyls, flavors and fragrances, and silicas) are not part of the sale. The transaction will not impact Millennium subsidiaries such as Millennium Petrochemicals, Millennium Specialty Chemicals, Millennium Holdings, LLC and those which hold Millennium's 29.5 percent ownership of Equistar Chemicals.

In conjunction with this transaction, Lyondell has determined that the carrying value of goodwill associated with the Inorganics Chemicals business segment is impaired as of December 31, 2006. Accordingly, Lyondell's net income for the fourth quarter 2006 will be reduced by $549 million to be a loss of $321 million, or $1.29 per share on a fully diluted basis. After this reduction, Lyondell's net income for the full year 2006 is $186 million, or 72 cents per share.

Privately held National Titanium Dioxide Company Ltd. noted that it intends to continue operating the assets it will acquire from Lyondell. "The acquisition of Millennium Inorganic Chemicals is an exciting component of our continued growth story and increases our global presence as we'll gain facilities in Europe and Australia as well as North and South America. We have been impressed with the high quality of the employees, products and R&D," said Dr. Talal Al-Shair, Chairman and CEO of Cristal. Approximately 2,900 employees are affiliated with the inorganic chemicals business.

Closing of the transaction is subject to regulatory clearance, compliance with labor and employment regulations, and other conditions that are typical for transactions of this type. Closing is anticipated to occur in the first half of 2007.

Lyondell Chemical Company, headquartered in Houston, Texas, is North America's third-largest independent, publicly traded chemical company. Lyondell is a leading global manufacturer of chemicals and plastics, a refiner of heavy, high-sulfur crude oil and a significant producer of fuel products. Key products include ethylene, polyethylene, styrene, propylene, propylene oxide, titanium dioxide, gasoline, ultra low-sulfur diesel, MTBE and ETBE. Lyondell operates on five continents and employs nearly 11,000 people worldwide.

The National Titanium Dioxide Company Ltd. ("Cristal") is the 9th largest titanium dioxide producer globally with a current production capacity of 100,000 metric tons, and an authorized design production capacity of 180,000 tons. With major offices in the United Kingdom, Saudi Arabia and Singapore it is the only producer of titanium dioxide in the Middle East and North Africa and exports its products to more than 70 countries. The company has been a leader in employee safety and environmentally friendly manufacturing processes. "TASNEE," a Saudi major diversified company with chemicals and petrochemicals operations, owns 66 percent of Cristal, while 33 percent of Cristal is owned by "GIC," an investment house established in Kuwait by the GCC countries.

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The National Titanium Dioxide Company Ltd (Cristal) has been manufacturing titanium dioxide (TiO2) using imported rutile ore at its ultra-modern Yanbu Al-Sinaiyah plant in Saudi Arabia since 1991. National markets its products under the well-known Cristal brand.
Cristal has developed an international reach with headquarters in Jeddah and offices in both the UK and Singapore. The company is owned by three partners, the National Industrialization Company (Saudi Arabia), the Gulf Investment Corporation (Kuwait), and a private investor.
In 2002, Cristal increased its original TiO2 production capacity from 70,000 metric tons a year to 100,000 metric tons in line with a projected annual rise in world demand of around 3% to 2005. This expansion makes Cristal the largest privately owned chemical company in Saudi Arabia. It also reinforces their position as a major supplier of TiO2.
Titanium dioxide pigment (TiO2) is a white powder which offers high opacity, brilliant whiteness and exceptional UV resistance. Such unique qualities have turned it into an essential ingredient in the manufacture of paints, inks, plastics and rubber. It is also used in other products such as soap and toiletries, adhesives, concrete curing compounds, candles and crayons.

TiO2 is a high-demand product. The paint industry is its largest user, consuming more than 50% of world TiO2 production, while plastics consume 19% and paper 17%.
Not surprisingly, the largest TiO2 consumer is the United States (33%), followed by Europe (24%) and Japan (8%). Over the next decade, substantial growth in consumption is expected in developing economies in more densely populated countries such as India and China.

May 11, 2007　Houston Chronicle

Billionaire investor gets right to buy stake in Lyondell　　

Russian-born billionaire Leonard Blavatnik has acquired the right to buy a stake in Houston's Lyondell Chemical Co., fueling an 11 percent surge in shares on anticipation of a possible takeover.

"Quite frankly, I think it's a good thing. The stock has reacted positively to this," said Michael Judd, an analyst with Greenwich Consultants.

Judd said Blavatnik's move was positive beyond Lyondell because it signaled that U.S. petrochemical and refining assets "are really quite valuable assets" despite the cyclical nature of the chemical business.

Lyondell shares closed up $3.68 at $36.75 today on the New York Stock Exchange, the highest in a year.

Blavatnik, who is a U.S. citizen, disclosed the move in a regulatory filing today.

The filing said Blavatnik, chairman of New York-based private equity investment firm Access Industries, has signed an agreement with Merrill Lynch & Co. effective this week that allows him to buy 8.3 percent of Lyondell's outstanding shares at $31.11 each "as a strategic investment." That is nearly 21 million shares for $653 million.

Los Angeles-based exploration and production company Occidental Petroleum said in a separate regulatory filing that it has sold nearly 7 million of its Lyondell shares to Merrill Lynch, and struck a swap agreement to divest the rest. The total of Occidental's transaction is the amount of shares Blavatnik will acquire.

Upon acquiring those shares, the filing said, Blavatnik will assess his ownership and voting position and "may seek to engage in discussions" with Lyondell about buying all of the chemical company's remaining shares or about a merger with Basell Holdings.

Access Industries bought Basell from BASF and Shell Chemicals for $5.7 billion in 2005.

Basell Holdings is the world's largest polypropylene producer and the largest maker of polyethylene in Europe. Both chemicals are the main ingredients in plastics. Lyondell makes and sells chemicals and plastics, produces fuel products, and refines heavy and high-sulfur crude oil.

Blavatnik's net worth is $7.2 billion, placing him 102nd on the world's ranking of billionaires, according to Forbes. He and two partners merged their Russian Tyumen Oil Co. with London-based BP in 2003 to form TNK-BP. Blavatnik's investments include the Basell acquisition, as well as real estate and telecommunications.

Lyondell spokesman David Harpole declined comment.

But Dan Smith, Lyondell's CEO, told analysts at a conference in Las Vegas on Wednesday that the company would consider a buyout, though it could hurt bondholders in a down cycle.

"You can argue somebody could come in and make a nice offer for us," Smith told analysts. "If they want to do that and enrich the shareholders, then we've always been willing to enrich the shareholders however you want to do it.

"If you're a bondholder, I'm not sure you get enriched in that situation," Smith continued. "If you think you're going to have a down cycle in the chemical markets, I don't think you want to add $8 to $10 billion in debt to this and live through that."

2007-04-18 Sinopec

Inauguration Ceremony of Ningbo ZRCC Lyondell Chemical Co. Ltd. in Beijing

The inauguration ceremony of Ningbo ZRCC Lyondell Chemical Co. Ltd. was held in the Great Hall of the People in Beijing on April 18, 2007. Zhang Jianhua, Director of the Board of Directors and Senior Vice President of China Petroleum & Chemical Corporation (“Sinopec”), Dan Smith, President and Chief Executive Officer of Lyondell Chemical Company, Yu Hongyi, member of Ningbo’s Municipal Party Standing Committee and Vice Mayor, jointly unveiled the name plate of Ningbo ZRCC Lyondell Chemical Co. Ltd., signifying that the Sino-US POSM joint venture of the ZRCC Ethylene Cracker Project has officially entered into the actual operation stage.

Ningbo ZRCC Lyondell Chemical Co. Ltd. is jointly formed by Sinopec Zhenhai Refining & Chemical Co. Ltd. and Lyondell China Holdings Limited. With a total investment amount of approximately RMB4.44 billion, this project will have an annual capacity of 285,000 metric tons of propylene oxide and 620,000 metric tons of styrene. It is Sinopec’s largest-scale chemical production facility per unit and the world’s biggest POSM manufacturing facility thus far. The new plant is scheduled for operation by the end of 2009 upon the completion of its construction. The annual sales revenue is expected to reach over RMB10 billion.

The key objective of this project is to optimize the product slate of the ZRCC ethylene cracker project, to satisfy China domestic demand for propylene oxide and styrene monomer, and to stimulate local economic development via transfer of advanced proprietary propylene oxide/styrene monomer technology of Lyondell into China. This project is the first cooperation between Sinopec and Lyondell. It is also Lyondell’s first manufacturing investment in China. Both parties indicate that they will employ the present project as opportunity to enhance mutual cooperation, to complement each other’s strength, to enhance project competitiveness, to achieve the best business performance, and to actively contribute to the mutual benefits of the parties as well as to the China petrochemical industry.

Those in attendance of the inauguration ceremony include: William Brekke, Commercial Counselor of U.S. Embassy in China; Morris Gelb, Executive Vice President and Chief Operating Officer of Lyondell; Zhang Jiaren, former Director of the Board of Directors and Senior Vice President of Sinopec; leaders from State Development and Reform Commission, Ministry of Commerce, Zhejiang Province, Ningbo City and other relevant departments; and representatives from U.S.-China Business Council, and the American Chamber of Commerce - People’s Republic of China.

Platts 2007/7/18

Equistar spends $125 million correcting environmental violations

US based Equistar Chemicals LP plans to spend more than $125 million on pollution controls and cleanup to address a number of air, water and hazardous waste violations at seven petrochemical plants in Texas, Illinois, Iowa and Louisiana, the Justice Department and the Environmental Protection Agency (EPA) announced Wednesday.

The states of Iowa, Illinois and Louisiana have all joined the federal government in the settlement.

"Equistar will be the first in the petrochemical industry to adopt these stricter environmental measures, many of which will go beyond what the regulations would require," said Granta Nakayama, EPA's Assistant Administrator for Enforcement and Compliance Assurance.

The plants which are subject to the settlement are Equistar's facilities in Morris, IL.; Clinton, IA; Lake Charles, LA. (currently inactive); Channelview, TX; Chocolate Bayou, TX; Corpus Christi, TX; and La Porte, YX.

The case was initiated as a result of inspections conducted by the EPA's National Enforcement Investigations Center (NEIC) at Equistar's Channelview, Texas, and Morris, IL., facilities. During the inspections, the EPA identified extensive Clean Air Act, Resource Conservation and Recovery Act, and Clean Water Act violations. The inspectors also found that Equistar had violated laws requiring the company to immediately report spills and releases of hazardous substances to federal and state emergency response centers.

Under the first 18 months of the settlement, Equistar is required to conduct a number of separate environmental audits of its operations to identify any additional problems, report its findings and proposed corrective measures back to the EPA and state regulators, and fix the problems. In addition, Equistar has agreed to monitor and fix leaks of volatile organic compounds (VOCs) and hazardous air pollutants, such as benzene, from process units; to change out equipment that uses ozone-depleting substances; and to reduce flaring of VOCs.

Equistar will also pay stipulated penalties under the consent decree for flaring based on the amount of pollution released to the atmosphere. At its Channelview facility in Texas, Equistar will install a wastewater treatment system that will reduce harmful air emissions by at least 26 mt/year. In addition, the company will eliminate the improper land disposal of an estimated 150,000 mt of D018 benzene-contaminated hazardous waste per year.

In addition to the pollution controls, Equistar will pay a civil penalty of $2.5 million (to be divided among the federal government and participating states), and spend $6.56 million on federal and state supplemental environmental projects.

2007/8/13 www.nj.com

Jury finds BASF is owed nearly $170 million

A Morris County jury this afternoon ordered a Texas-based chemical company to pay BASF Corp. nearly $170 million for overcharging the Florham Park-based company for eight years.

The six-member jury deliberated for three days following seven weeks of testimony over a contract dispute between the two businesses, and ordered Lyondell Chemical Co. to pay $169,932,670 in damages.

That award "reflects their belief that Lyondell had overcharged BASF significantly over many years,'' BASF attorney Eugene F. Assaf said.

Under its contract with Lyondell, BASF was to be charged the lowest price that Lyondell charged any of its customers for propylene oxide, a compound that BASF uses to make polyols, used in making all sorts of goods, from gym floors to adhesives.

Lyondell admitted at trial that it overcharged BASF, but attorney H. Lee Godfrey put the refund due BASF at $22.5 million.

Godfrey said his client intends to seek a new trial.

As jurors left the courtroom, they told Superior Court Judge Deanne Wilson that if they had to spend their summer in a courtroom, they were glad it was with her.

On April 8, 2005, Lyondell filed a lawsuit against BASF Corporation in the Court of Common Pleas for Delaware County, Pennsylvania seeking declaratory judgment to resolve a commercial dispute regarding the interpretation of various provisions of a propylene oxide sales contract.
Soon thereafter, on April 12, 2005, BASF filed a lawsuit against Lyondell in the Superior Court of New Jersey, Morris County asserting various claims relating to alleged breaches of the same propylene oxide sales contract and seeking damages in excess of $100 million.
In September 2005, BASF's motion to dismiss Lyondell's declaratory judgment action in Pennsylvania was granted, and Lyondell has decided not to appeal that ruling.
The lawsuit BASF filed in New Jersey is proceeding. Lyondell believes that it has valid defenses to all claims and is vigorously defending them. The parties have engaged in negotiations to resolve the claims without success to date. Lyondell does not expect the resolution of the claims to result in any material adverse effect on its business, financial condition, liquidity or results of operations.

2007/10/31 Basell

LyondellBasell Industries to be new company name

Basell and Lyondell Chemical Company jointly announced today their plans for naming the company which will result from their planned merger. Following completion of the merger transaction, the newly combined company will be named LyondellBasell Industries.

Lyondell announced Sept. 25 that a special meeting of its shareholders has been scheduled for Tuesday, November 20 to vote on the proposal to adopt the Agreement and Plan of Merger, dated as of July 16, 2007, among Basell AF, BIL Acquisition Holdings Limited and Lyondell.

“The new name will keep two well respected names in the forefront of the polyolefins, chemicals and refining industries,” said Volker Trautz, Chief Executive Officer of Basell.
“We are positioning our expanded company for a bold future, while at the same time retaining important links to the past that are valued by our customers, our employees, our partners, investors and the communities in which we operate,” said Dan F. Smith, Chairman, President and Chief Executive Officer of Lyondell.

Both companies said that the LyondellBasell brand will be rolled out after the closure of the transaction, which is expected to take place in the fourth quarter 2007.

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October 26, 2007 Associated Press

EU Clears Basell Bid for Lyondell

European Union antitrust regulators on Friday(10/26) cleared Basell's $12.6 billion acquisition of its U.S. rival Lyondell Chemical Co., a deal that will create one of the world's largest chemical companies.

The European Commission said the 8.79-billion euro buyout did not pose any competition concerns.

The EU executive said the companies' activities in the EU "are largely complementary" due to their different production areas.