LyondellBasell Industries N.V. is a global, independent chemical company and
was incorporated under Dutch law on October 15, 2009. We believe we are one
of the world’s top five independent chemical companies based on revenues.
We participate globally across the petrochemical value chain and are an industry
leader in many of our product lines. Our chemicals businesses consist primarily
of large processing plants that convert large volumes of liquid and gaseous
hydrocarbon feedstock into plastic resins and other chemicals. Our chemical
products tend to be basic building blocks for other chemicals and plastics,
while our plastic products are typically used in large volume applications.
Our customers use our plastics and chemicals to manufacture a wide range of
products that people use in their everyday lives including food packaging, home
furnishings, automotive components, paints and coatings. Our refining business
consists of our Houston refinery, which processes crude oil into fuels such
as gasoline, diesel and jet fuel.
We operate in five business segments. Our reportable segments are:
Olefins and Polyolefins—Americas (“O&P—Americas”).
Our O&P—Americas segment produces and markets olefins, including ethylene
and ethylene co-products, and polyolefins.
Olefins and Polyolefins—Europe, Asia, International (“O&P—EAI”).
Our O&P—EAI segment produces and markets olefins, including ethylene
and ethylene co-products, polyolefins and polypropylene compounds.
Intermediates and Derivatives (“I&D”). Our I&D segment
produces and markets propylene oxide and its co-products and derivatives, acetyls,
ethanol, ethylene oxide and its derivatives, and oxyfuels.
Refining. Our Refining segment refines heavy, high-sulfur crude oil on the
U.S. Gulf Coast.
Technology. Our Technology segment develops and licenses chemical and polyolefin
process technologies and manufactures and sells polyolefin catalysts.
The marketing of our oxyfuels products previously was aligned with the sale
of our products from our refining business, particularly our Berre refinery.
We moved the management responsibility for business decisions relating to oxyfuels
to our I&D business with the closure of the Berre refinery because profits
generated by oxyfuels products are related to sourcing decisions regarding certain
co-products of propylene oxide production.
We predominantly compete in regional markets impacted by global pricing mechanisms.
Success in these markets is determined by competitive pricing, low cost production,
product quality, reliability of product delivery and supply volumes, and customer
service. Profitability is affected by regional raw material costs and price
competition among producers. Historically, the chemical and refining industries
have operated in competitive environments and those environments are expected
to continue.
In addition to other chemical and refining companies, we compete with the chemical
and refining divisions of major national and international oil companies both
in the United States and abroad.
Our products and raw materials are transported by barge, ocean going vessel,
pipeline, rail car, bulk truck and tank truck.
Based on published data, we believe we were, the second largest producer of
ethylene in North America, with ethylene rated capacity of approximately 9.8
billion pounds per year, or approximately 13% of total North American ethylene
production capacity;
and the third largest producer of PE in North America with 5.9 billion pounds
per year of capacity, or approximately 13% of North American capacity; and the
largest producer of PP in North America, including our share of our Indelpro
joint venture capacity, with 3.3 billion pounds, or approximately 18% of the
North American capacity.
Based on published data and including our proportionate share of our joint
ventures, we believe we were,
the sixth largest producer of ethylene in Europe with an ethylene rated capacity
in Europe of approximately 4.3 billion pounds per year, or approximately 8%
of total European ethylene capacity;
the largest producer of PP in Europe with 5.2 billion pounds per year of capacity,
or approximately 22% of European PP capacity;
the largest producer of PE in Europe with 5.0 billion pounds per year of capacity,
or approximately 22% of HDPE and 13% of LDPE European capacity; and
the largest PP compounds producer in the world with 2.4 billion pounds per year
of capacity, with approximately 54% of that capacity in Europe, 21% in North
America, and 24% in the rest of the world.
Based on published data regarding PO capacity, we believe that, excluding our
partners’ shares of joint venture capacity, we are the second largest
producer of PO worldwide, with approximately 13% of the total worldwide capacity
for PO. Based on published data regarding SM capacity, we believe that we are
one of the largest producers of SM worldwide, with approximately 5% of the total
worldwide capacity for SM