Page 39 - Plastics News October 2020

LyondellBasell purchases $2bn stake in Sasol Sumitomo (SHI) Demag unveils industry-
project focused sales structure
yondellBasell and Sasol are to form a 50/50 joint njection moulding machinery maker Sumitomo (SHI)
Lventure through which the former will buy 50 per IDemag is restructuring its centralised group sales
cent of Sasol's 1.5 million tonne ethane cracker, organisation by focusing on five Business Developments
dedicated to the specific industry-related market
900,000-tonne low and linear-low density
challenges. The initiative, steered by Siegfried Köhler,
polyethylene plants and associated infrastructure for a
who was appointed director of worldwide corporate
total consideration of $2 billion. The agreement
sales at the Schwaig headquarters in Germany on 1
includes customary rights for each partner regarding
the potential future sale of its ownership interest. The
JV will operate under the name Louisiana Integrated
PolyEthylene JV LLC. “This investment represents a
unique opportunity to bring together the best of both

October 2019, fully integrates Sumitomo (SHI) Demag's
prevailing and new Business Developments into the
overarching global sales management structure.
“Through this realignment, we are creating a fast and
companies and create deep, long-term value while direct link between customer requirements and future
immediately realising the many benefits of new, product development. This enables us to use the existing
strategically-located, world-scale assets,” said Bob industry competence and expertise in a much more
Patel, chief executive of LyondellBasell. Under the targeted and efficient manner for the benefit of our
terms of the transaction agreements, each JV partner customers,” explained Köhler. Henrik Langwald and
will provide pro-rata shares of ethane feedstocks and Arnaud Nomblot will continue to manage Automotive
and Electronics Business Development and Packaging
will offtake pro-rata shares of cracker and PE products
Business Development respectively. Anatol Sattel will
at cost. LyondellBasell will operate the US Base
independently manage Business Development Medical.
Chemicals assets on behalf of the JV. Upon close of the Newly added to the industry-orientated structure is
transaction, some Sasol US employees will become
Business Development Consumer, headed up by Paolo
employees of LyondellBasell. Sasol will retain full Zirondoli. Jürgen Schulze will continue to manage
ownership and operational control of its Lake Charles Business Development Automation, focusing on the
Research and Development complex, Lake Charles East three core areas of Robotics, Components and Systems
Plant ethane cracker and US Performance Chemicals Technology. Sumitomo (SHI) Demag Plastics Machinery
Business assets in Lake Charles, which produce Ziegler North America, Inc. provided the industry with an update
alcohols and alumina, ethoxylates, Guerbet alcohols, on its 2020 operations and investments in the company's
paraffins, comonomers, linear alkyl benzene, ethylene infrastructure. “Since March, our number one priority
has been supporting existing and new customers with the
oxide and ethylene glycol. The US Performance
Chemicals Business is a key part of Future Sasol, machines, parts and service required during these
challenging times,” said John F. Martich III, Executive
consistent with the strategy to increase focus on
V.P. and Chief Operating Officer of Sumitomo (SHI)
specialty chemicals where Sasol enjoys differentiated
Demag's U.S. operations. “Teamwork and a 'whatever-it-
capabilities and strong market positions. Sasol will also takes attitude,' plus our large inventory of U.S.- stocked
retain access to competitively priced onsite ethylene machines and parts were all necessary components for
to ensure value chain integration. The transaction is helping our customers gear up quickly to meet essential
expected to close by the end of 2020. requirements on exceedingly short timelines.”

October 2020 39 Plastics News