frequently asked question

Are you really changing the name of British Petroleum to Beyond Petroleum ?
     This question was answered by Sir John Browne, BPs CEO, in 2000.

No, of course not. The words 'Beyond Petroleum' are 'a kicker' - the pay-off line in the current advertising campaign that sums up how the company has changed as a consequence of recent mergers and acquisitions and how it will change further in the future as we expand into new areas beyond our traditional business of finding and selling oil and oil-related products. For example, the addition of Amoco and Arco to the group has boosted gas as a proportion of our output from around 15 to 38 per cent, and we are aiming to raise this to some 45 per cent by 2003. That makes us almost as much a gas business as an oil company. And gas being a more efficient fuel with lower emissions that takes us very significantly towards increasingly cleaner, greener energy.

As another example, at our retail sites non-fuel products currently account for about a third of our sales worldwide. A major aim of the radical upgrade of our global network now under way is to boost that proportion to 50 per cent or more. Add to that our world-leading solar business where we expect revenues to grow to around $1billion a year by 2007, plus our growing investment in our new gas and power stream and our involvement in research into renewables, and it is perfectly reasonable and, I believe, sensible to assert that we are looking 'beyond petroleum'.

As to the name of the company, we are now simply known as BP. This anticipates a change from the formal BP Amoco p.l.c. to BP p.l.c. which we will be asking our shareholders to endorse at our next AGM.



(Associated Press, April 13, 2000)
History: BP's predecessors include Burmah Oil and Anglo-Persian Oil. Anglo had the first oil strike in the Middle East in 1908; the British government bought 51 percent in 1914, eventually selling its interest in 1987. Anglo's Iranian operations were seized in 1951, but returned by the Shah in 1953. Changed name to BP in 1954. Had North Sea oil strikes in 1970. Prudhoe Bay, Alaska oil discovered in 1969; BP traded its Alaska interests for 55 percent of SOHIO in 1970; as SOHIO it used Alaskan profits to buy Kennecott. In the 1980s BP bought Purina Mills and the rest of SOHIO. Kuwait owns 10 percent (down from 22 percent) of BP. BP had 1990 sales of $59 billion on oil and gas interests in 20 countries. BP also sells chemicals (see BP Chemicals) (Hoover's Handbook of World Business 1992, p. 164). Owns British Gas (Whole World Oil Directory 1991).

British Petroleum completed its $55 billion acquisition of Amoco on Dec. 31, 1998, creating Britain's biggest company and the third largest oil company in the world. The new company will be called BP Amoco Plc. The deal cleared its final hurdle Wednesday when the U.S. Federal Trade Commission approved the deal on condition that the merged companies sell 134 gasoline stations and nine terminals storing oil products (Reuters, Jan. 1, 1999).

In April 2000, the U.S. Federal Trade Commission "unanimously approved
BP Amoco PLC's $27.6 billion purchase of Atlantic Richfield Co. after the company agreed to sell Arco's Alaskan large oil holdings. The merger, approved by the commission in a 5-0 vote, will create one of the world' largest oil companies. The company said it would move swiftly to conclude the acquisition. The approval requires BP Amoco to sell all of Arco's oil holdings in Alaska within 30 days to resolve anticompetitive problems. The FTC had opposed the merger because of concern that the combination, without such divestitures, would dominate the West Coast oil market. BP Amoco already has agreed tentatively to sell the holdings to Phillips Petroleum Co... The merger creates the second largest nongovernment oil company in world behind Exxon Mobil Corp., a merger that received FTC approval last November."

BP Amoco PE   Europe  Asia  


Supplying polyethylene to the world

The BP Polyethylene Business is a leading producer of polyethylene, with a full range of low density polyethylene (LDPE), linear low density polyethylene (LLDPE) and high density polyethylene (HDPE) products for the packaging, agricultural, consumer goods and construction sectors. We are also major licensors of cutting edge process and catalyst technologies to the global polyethylene market.

The Polyethylene Business is one of the largest business units in BP's Chemicals stream, with access to over 1.9 million tonnes per annum of polyethylene capacity.

Innovex LLDPE film products

The business supplies the film market sectors with Innovex linear low density resins based on both butene (C4) and higher alpha olefin (C6) comonomers.

Novex LDPE film and coating products

Novex low density resins include a comprehensive range of homopolymer and copolymer grades, additive packages and natural masterbatches.

Innovene  Advanced gas phase technology

The Innovene gas phase manufacturing process has been licensed worldwide, and almost 40 licensees currently use this ground-breaking technology.

Rigidex  HDPE Moulding Products

Rigidex HDPE is used many sectors of the packaging industry, with products for applications as diverse as small bottles, large drums and tanks, crates, pails, bottle caps, toys, technical parts and fibres.

Rigidex  Pipe products

Rigidex HDPE and MDPE products supply the utility services and distribution industries. The main applications are in pressure and non-pressure piping systems, the coating of steel pipes with polyethylene, and the production of ducting to carry cables.

Wire & Cable  Resins and compounds

Resins and compounds based on LDPE, LLDPE and HDPE, manufactured mainly at Cologne, Germany are supplied to the wire and cable market.

Strength in Depth - global reach

Our plants based at Grangemouth in Scotland, Lavera in France, and Cologne in Germany produce high density and linear low density polyethylene for the film, coating, moulding, pipe, masterbatch and wire and cable markets. BP has three joint ventures producing polyethylene in the Asia Pacific region;
PT Peni in Indonesia; PEMSB in Malaysia and Bataan Polyethylene Corporation in the Philippines.

BP Amoco


BP Amoco produces olefins at two manufacturing sites in Europe, Grangemouth in Scotland and Lavera in France. The sites have a combined ethylene cracking capacity of approximately 1.3 million tonnes per annum. Olefins produced at these two sites are used to supply BP Amoco derivatives, along with various external customers and joint venture partners in Europe and East Asia.
Two former Amoco sites located at
Feluy and Geel in Belgium have recently been integrated into the business. Feluy is a net consumer of 315,000 tonnes of ethylene per annum, whilst Geel consumes 480,000 tonnes of propylene. The Baglan Bay plant in Wales is also a consumer of ethylene and propylene for the production of isopropanol, ethanol and vinyl acetate monomer.

Our European sales office, located at Sunbury-on-Thames near Heathrow, services the UK, France, Germany and Benelux. The BP Amoco Olefins European headquarters is also located in Sunbury-on-Thames.


 Grangemouth in Scotland:

At the heart of the Grangemouth site are two crackers. These produce feed materials used by derivatives including the PP3 (polypropylene), PEX, Innovex and Rigidex (polyethylene) plants. These plants produce various grades of low and high-density polyethylene used in the manufacture of thousands of everyday items ranging from stretch wrap and fruit bags to gas pipes and plastic bottles. Raw materials for both crackers come directly from the North Sea's Forties pipeline system.

The Grangemouth Unit 4 (G4) can crack 250,000 tonnes of ethylene per annum from both gas and light distillate feedstocks. The Kinneil Grangemouth (KG) unit is a gas cracker using mainly propane and butane as its raw materials. It has a capacity of 450,000 tonnes of ethylene per year. An effluent treatment plant that treats wastewater from both KG and G4 is one of KG's key features. This has radically improved effluent quality and is a testament to BP Amoco's commitment to environmental improvement. Any further waste products from both plants are ultimately recycled or used as fuel. Nothing is wasted.

The two units produce 700KTe of ethylene per annum between them, although this capacity will increase to more than 1,000KTe per annum by 2001.


Olefins at Lavéra are manufactured indirectly by BP Amoco through Naphtachimie, a 50:50 joint venture with Elf Atochem. Naphtachimie's Cracker 4 produces 700,000 tonnes ethylene, 500,000 tonnes propylene and 120,000 tonnes of Butadiene per annum. BP Amoco uses 50% of this output to supply derivative plants such as Appryl (Polypropylene) and Oxochimie (Oxo-alchohols) and third party customers.

 Feluy, Belgium 

The BP Amoco Chemicals Feluy plant, located just south of Brussels in Belgium, is the largest western European producer of linear alpha olefins (LAOs) and the largest European producer of polyalphaolefins (PAOs). To meet the requirements of the industry, production capacity of LAOs is now 300,000 tonnes per annum. PAO production capacity on the site is 55,000 tonnes.

 Geel, Belgium

 BP Amoco Chemicals facility in Geel, Belgium is located on a 115 hectare site, 45 km east of Antwerp.

The plant's operations can be divided into two main streams. The commodity and speciality stream manufactures 900,000 tonnes of purified terephthalic acid (PTA) and 130,000 tonnes of purified isophthalic acid (PIA) per annum. These are used in polyester fibres, films and packaging resins, as well as in coatings and glass reinforced plastic resins. A 450,000 ton paraxylene plant on the site provides the raw material for the PTA. The polymer stream manufactures 500,000 tonnes per annum of polypropylene resins for use in fabrics, fibres and moulded plastics, for which the site consumes 480,000 tonnes of propylene per annum.

 Marl in Germany

BP Amoco Chemicals Marl in Germany consumes 100,000 tonnes of ethylene and 300,000 tonnes of benzene per annum. The plant manufactures styrene, polystyrene (PS) and expandable polystyrene (EPS). The acquisition of the Marl facility in 1997 has made BP Amoco Chemicals the second largest supplier of PS and EPS in Europe.

 Baglan Bay

BP Amoco Chemicals Baglan Bay plant is located in Port Talbot, 13 kilometers east of Swansea on the south coast of Wales. It is one of the company's three major petrochemical production centres in the UK. The 1000 acre site manufactures ethanol, vinyl acetate monomer (VAM) and isopropanol (IPA) from ethylene and propylene feedstock.


BP Amoco's Olefins business in Asia is run from three offices based at Kuala Lumpur in Malaysia, Jakarta in Indonesia and Singapore.
The strategic function of BP Amoco Olefins operations in Asia is to source and supply competitively advantaged olefins to our Joint Venture polymer manufacturing assets in the Asia Pacific region. We supply approximately 140,000 tonnes of ethylene to our joint venture polyethylene plants in Merak, Indonesia and Bataan, Philippines. A further 250,000 tonnes of propylene are supplied to our joint venture site at Balongan, Indonesia and to other third party customers.


BP Amoco has a 51% share in the PT Petrokimia Nusantara Interindo (PT PENI) polyethylene plant in Merak, Indonesia. Other joint venture partners include PT Arseto Petrokimia (24%), Mitsui and Co Ltd (12.5%) and Sumitomo Corporation (12.5%).
         *PT Peni for sale: BP

The plant manufactures 450,000 tonnes per annum of Linear Low Density Polyethylene (LLDPE), and High Density Polyethylene (HDPE) using BP Amoco's Innovene technology.

In the Philippines, BP Amoco owns a 38% share in the
Bataan Polyethylene Corporation (BPC) plant at Bataan. Other joint venture partners include Petronas and Sumitomo Corporation. Plant capacity will be 250,000 tonnes per annum of LLDPE and HDPE when operations commence in mid 2000.
         *Bataan PE for sale: BP
BP Amoco also has a 60% share in
Polyethylene Malaysia (PEMSB) and a 15% share in Ethylene Malaysia (EMSB) at Kertih.


BP Amoco has a 10% share of PT Polytama Propindo (PTPP) polypropylene in Balongan. The plant produces 180,000 tonnes per annum of polypropylene, based on Himont technology.

The Olefins Asia business is responsible for marketing all propylene (approximately 210,000 tonnes per annum) produced at the
Pertamina refinery at Balongan in Indonesia. Olefins Asia also manages the propylene pipeline supply operation between the refinery and the Polytama site.

Polytama Propindo was established as a joint venture between Tirtamas Majutama with 80% stake, BP Chemicals owns 10% share and Japans Nissho Iwai owns the rest 10%.

Tirtamas Majutama had agreed to hand over its assets in the multibillion dollar project to Indonesian Bank Restructuring Agency(IBRA).

BP Solvay Polyethylene North America 

(Solvay holds a 51 percent stake and BP owns the remainder.)

BP Solvay Polyethylene North America is one of the global marketplace's most exciting new companies. A joint venture between British Petroleum (BP) and Solvay S.A., our combined roots in the chemical business go back almost 140 years.

Annually BP Solvay Polyethylene produces
1.8 billion pounds of Fortiflex high-density polyethylene (HDPE) at its production facilities in Deer Park, TX. Most of the HDPE produced is in the form of plastic pellets, shipped in railroad hopper cars and bulk trucks..

HDPE resins are used extensively in a wide range of consumer and industrial products manufactured by many different processes.

At BP Solvay Polyethylene North America, we take product quality and customer satisfaction very seriously. We have the toughest standards in the industry and we back them up with our No-Nonsense Pledge . We make sure our customers have the products they need, when and where they need them.

(2001/11/1 release

Solvay's agreement with BP enters into force

BP completes deal to strengthen core polymers businesses    

Solvays agreement with BP enters into force

Strengthening of Solvays position in high-margin Specialty Polymers
Birth of "BP SOLVAY POLYETHYLENE" joint ventures

Following the regulatory clearance received by the United States Federal Trade Commission (FTC) in July, Solvay has just received the final go-ahead from the different national authorities and from the European Commission on the transaction signed with BP in August 2001. The competition authorities required no modification of the agreement.

Being effective as from November 1, 2001, with retroactive effects as from October 1, 2001, the three-way agreement includes:

The acquisition by Solvay of BPs engineering polymers business. It will increase significantly Solvays sales in high performance engineering polymers and performance compounds. Total turnover in this fast-growing market will reach approximately EUR 900 million (33% of the plastics sector) and will grant Solvay a global leadership position in the high performance plastics industry.

The entire activities will be managed by Vincenzo Morici, Manager of Solvay's Specialty Polymers and Performance compounds. The transaction considerably expands Solvay
s geographic presence in Specialty Polymers and the range of products that it can offer to a wider variety of industries.

- The setting up of
two joint ventures in high density polyethylene ("HDPE"), which together are one of the leading players worldwide, with a total turnover of approx. EUR 2.0 billion.

Joint ventures in
Europe (50/50) and in the USA (51/49) have been created under the new name "BP Solvay polyethylene". European activities will be managed by Robin McGill (formerly with BP) and US activities will be managed by Foster Brown (formerly with Solvay). The new global force in the manufacture, sales and marketing of HDPE will offer the customers the widest range of HDPE products and services worldwide.

- And t
he divestment of Solvays Polypropylene (PP) activities where it was not amongst the global leaders (ranked 12th with annual sales of EUR 500 million).

Besides the transfer of assets, the deal generates for Solvay a/o. an up front cash payment of EUR 80 million from BP and strengthens the HDPE business through security of ethylene supply. The joint venture agreements also define the conditions of exercise of puts and calls between both parties over their interests in the joint ventures.

"Through this agreement, Solvay is well placed to respond to the challenges of competitiveness, leadership and growth of the twenty-first century by combining the best from the strengths and traditions of the two partners" said Alois Michielsen, Chief Executive Officer. "With increased position in high-margin Specialty Polymers and strong leading position in HDPE, the Group reduces its exposure to petrochemical cycle while increasing the value of its product portfolio".

Solvay is an international chemicals and pharmaceuticals group with headquarters in Brussels. It employs about 32,000 people in 50 countries. In 2000 its consolidated sales amounted to EUR 8.9 billion generated by its four activity sectors: Pharmaceuticals, Chemicals, Plastics and Processing. Solvay is listed in the Euronext 100 index of top European companies. Details are available at

BP completes deal to strengthen core polymers businesses

BP has completed its deal with Solvay, announced in December 2000, significantly strengthening its core polyolefins businesses in Europe and the USA.

As result of the deal,
BP has added Solvays global polypropylene business to its existing business and the two companies have combined their high-density polyethylene (HDPE) businesses into two joint ventures. BP has also transferred its non-core engineering polymers business to Solvay.

Completion of the deal followed approval from the European Commission and other regulatory authorities.

The deal makes BP the world
s second largest producer of polypropylene. The two HDPE joint ventures ? BP Solvay Polyethylene Europe (50 per cent BP, 50 per cent Solvay), led by Robin McGill from BP, and BP Solvay Polyethylene North America (49 per cent BP, 51 per cent Solvay), led by Foster Brown from Solvay ? will together also be a leading player in their sector.

"This is a significant step in repositioning and upgrading our chemicals portfolio," said Byron Grote, chief executive of BP
s chemicals businesses. "The deal expands BPs worldwide reach in our core petrochemicals businesses, while exiting a non-core business."

He added: "Our priority will now be to fully integrate the polypropylene businesses and operate the HDPE partnership to access maximum synergies from these combinations."

2003/7/9 Dow Jones Business News

Solvay, BP JV Restructures US Production Facilities

Belgian chemical and pharmaceuticals company Solvay SA (B.SOL) Wednesday said that its U.S. joint venture with BP PLC - BP Solvay Polyethylene North America - will discontinue production of 260 million pounds of high density polyethylene (HDPE) capacity from three small-capacity lines at its Deer Park, Texas manufacturing site at the end of July. The capacity being removed from the Deer Park site is being replaced by production from a new 700 million pound HDPE slurry loop plant at Cedar Bayou, Texas, in which BP Solvay Polyethylene owns a 50% interest.

The recent, successful startup of the new Cedar Bayou, Texas HDPE plant,
jointly owned by BP Solvay Polyethylene North America and Chevron Phillips Chemical Company L.P, enables BP Solvay Polyethylene to improve the overall economics and efficiency of its operations.

"This move, previously publicized in November 2001, strategically places our company in the position to continue providing the level of preferred service to our customers we have established at BP Solvay Polyethylene North America. At the same time we will be operating from a more efficient manufacturing base," said Gary Miertschin, Commercial Vice President of the joint venture.

BP Solvay Polyethylene North America is a joint venture between subsidiaries of BP and Solvay America, Inc. It combines the worldwide strengths of two industrial leaders to form a powerful global presence in the HDPE industry. The joint venture when combined with its European affiliate together constitute the third largest HDPE producer in the world, with a total of six production sites in Europe and the United States, and a total annual capacity of 4.6 billion pounds.

2000/12/19 Solvay

Major activity exchange between Solvay and BP

SOLVAY announced that it signed with BP a Memorandum of Understanding aimed at strengthening its portfolio. The agreement would lead to SOLVAY's transfer of its polypropylene (PP) business to BP and to BP's transfer of its engineering polymers business to SOLVAY. SOLVAY would also form joint ventures with BP in high density polyethylene (HDPE) in Europe and the Americas. The future of these joint ventures has been agreed upon by both parties (global turnover of approx. EUR 2.0 billion).

In Europe, the two companies would combine their European high-density polyethylene (HDPE) businesses into a 50-50 joint venture.
In the US, the agreement would lead to SOLVAY and BP creating a 51-49 joint venture for SOLVAY's current HDPE business.
"This envisaged transaction would represent a further step in the ongoing repositioning of SOLVAY businesses, especially in Plastics", said SOLVAY CEO, Mr. A. Michielsen. 'It clearly illustrates SOLVAY's strategy of developing leadership positions, while moving into growing, innovative, high-yield markets, such as engineering polymers. This transaction would boost our growth and reduce our cyclicality and diversification".

"With a turnover of about EUR 700 million in engineering polymers, SOLVAY would take a leading global position in the high-growth high performance engineering polymers industry offering a broad range of competitive products", Alois Michielsen continued.

"Because of ongoing consolidation in the sector, our PP operations (turnover of about EUR 500 million) have more difficulties to compete effectively in that market. Exiting this business would contribute to focus on our existing global competitive leaderships", he concluded.

This Memorandum has been approved by SOLVAY and BP Board of Directors. The proposed transaction is subject to due diligence, to regulatory approval by the relevant authorities, as well as consultation with workers' representatives. Completion is anticipated in June 2001.

Further communication on this important deal will follow during the second quarter 2001 together with disclosure of financial details agreed upon by both parties.

SOLVAY is an international pharmaceutical and chemical group with headquarters in Brussels. It employs about 33,000 people in 50 countries. In 1999 its consolidated sales amounted to ?7.9 billion generated by its four activity sectors: Chemicals, Plastics, Processing and Pharmaceuticals. SOLVAY is listed in the Euronext 100 index of top European companies

Notes to editors:

High performance and engineering polymers.

SOLVAY's existing high performance and engineering polymers business involves 7 production units that are located in Tavaux (France), Rheinberg (Germany), Oudenaarde (Belgium), Roccabianca (Italy), Grand Prairie, Texas, Mansfield, Texas, and Decatur, Alabama. Ranges of products includes copolymers made from polyvinylidene chloride (IxanR), a wide variety of polyvinylidene fluoride grades (SolefR), reinforced polyarylamide-based compounds (IxefR) and polyphenylene sulfide (PrimefR) compounds, polypropylene elastomer compounds (SequelR) and crosslinked polyethylene compounds (PolydanR).

BP's engineering polymers business includes its world-class line of thermoplastics and specialty polymers, known by the brand names of UdelR, RadelR, AmodelR, XydarR, TorlonR, and KadelR. The polymers are characterized by high-temperature resistance and have applications in the automotive, aerospace, industrial, medical and electronics industries, among others. To be included in the engineering polymers transaction are manufacturing plants in Atlanta, Georgia; Augusta, Georgia; Marietta, Ohio; and Greenville South Carolina, and the business's headquarters and research & development center in Alpharetta, Georgia. Also included in the transaction are technical and marketing operations located in North America, Europe, Southeast Asia, and Japan.

After this transaction, SOLVAY will offer a range of high performance and engineering polymers with sales of about EUR 700 million in 2000, produced at 11 sites in Europe and the US. In most market segments, SOLVAY will be able to provide customers a better geographic reach, an improved technical service and a larger choice of products and solutions.

Polypropylene business

BP is the world's third largest producer of polypropylene (including its share to come from the dissolution of its Appryl joint venture with Atofina, and the equity share of the ARCO PP joint venture with Itochu in California) with production totaling almost 2.3 million tons per year from sites in the Grangemouth, Scotland (270 kta); Lavera, France (140kta); Geel, Belgium (500kta); Chocolate Bayou, Texas (900Kta) Cedar Bayou, Texas (300kta) and Carson, California (165 Kta).

SOLVAY is currently the world's twelfth largest polypropylene producer, with production at three sites: Lillo, Belgium (130kta); Sarralbe, France (270kta); and Deer Park, Texas (380kta).

After this transaction, BP would operate 3.1 million tons/year of polypropylene production at 9 sites.

High-Density polyethylene business

SOLVAY produces a total of around 1.5 million tonnes of HDPE per year, making it the world's fifth largest producer of the polymer. It produces HDPE at five sites around the world: Lillo, Belgium (165kta); Sarralbe, France (165kta); Rosignano, Italy (190kta); Deer Park, Texas (880kta) and Santo Andre, Brazil (70kta).

In Europe, BP produces HDPE at Grangemouth, Scotland (290kta with another 185kta onstream in February 2001) and Lavera, France (225kta). BP's existing joint venture HDPE production in Indonesia, Malaysia and the Philippines will not be contributed to the joint ventures. BP will continue to operate its own low and linear low density polyethylene business. This comprises LLDPE at Grangemouth Scotland (300kta), LDPE at Wilton, England (90kta) and a LDPE plant (350kta) and a LLDPE plant (220kta) contained within the Erdoelchemie joint venture (50/50 with Bayer).

After this transaction, the HDPE joint ventures would have a total capacity of 2.2 million tons/year with 7 production sites.

ARCO Polypropylene, LLC 

(BP   18 April 2000 )

BP Amoco combination with ARCO expands BP Amoco's Polypropylene capacity

BP Amoco announced today that, as a result of its combination with ARCO, the company will assume two thirds ownership in ARCO Polypropylene, LLC, a joint venture between ARCO and the Itochu Corporation of Japan.

The joint venture consists of a recently constructed 200,000 tonne per year polypropylene plant in Carson, California. The plant started producing polypropylene in December 1999. The joint venture's initial focus is the West Coast and export customers.

"We look forward to assuming our position as majority shareholder in ARCO Polypropylene, LLC, and to working with our partner in the venture to determine how to maximise synergies among ARCO Polypropylene, LLC and BP Amoco's leading worldwide polypropylene position," said Mike Graff, BP Amoco polypropylene business unit leader.

Polypropylene is used in a wide array of products such as appliances, automotive parts, carpeting and packaging. BP Amoco is one of the world's largest polypropylene producers with 2,000,000 tonnes per year of capacity.

Amoco is a world-wide producer and marketer of oil, natural gas, petroleum products, chemicals and solar power. The London-based company had 1999 revenues of approximately US $100 billion.

→ 伊藤忠15%

BP 100%に (伊藤忠はアジア、南米のSales agent)

Chemical Week Apr 03, 2002

BP Slashes U.S. Polypropylene Capacity

BP says it will permanently close about 32% of its North American polypropylene (PP) capacity. The company will shutter two unitsa 261,000-m.t./year plant at Bayport, TX and a 205,000-m.t./year unit at Chocolate Bayou, TX. BP idled the Chocolate Bayou unit late last year, citing weak demand and poor margins. The Bayport plant will be closed by June. Employees affected by that shutdown will be redeployed to other positions at its south Houston refining and petrochemical complex, says BP.

The closures will leave the company with PP capacity of 625,000 m.t./year at Chocolate Bayou, and 386,000 m.t./year at Deer Park, TX. BP obtained the Deer Park plant as part of a swap deal with Solvay Polymers. BP also has about 180,000 m.t./year of PP production at a joint venture with Itochu at Carson, CA, obtained in its 2000 acquisition of Atlantic Richfield.

Weak market conditions and oversupply have prompted several PP producers to rationalize capacity. Basell idled its PP plant at Bayport, TX in late 2000 as part of a 10% shutdown in its worldwide PP capacity (CW, Jan. 3, 2001, p. 15); Huntsman closed about 27,000 m.t./year of capacity at Odessa, TX in January. PP prices recently recovered, following a year of declines; producers pushed through a 5-cts/lb increase.

Formosa Plastics recently brought onstream almost 160,000 m.t./year of new PP capacity at Point Comfort, TX (CW, March 6, p. 37). Phillips Petroleum is expected to start up a 350,000-m.t./year PP plant at Linden, NJ by the end of June.

Platts 2002/10/25

Indonesian PE joint venture PT Peni for sale: BP

Indonesian polyethylene joint venture PT Peni is to be sold after shareholders (BP 75%, Mitsui Corp 12.5% and Sumitomo Corp 12.5%) decided that the verticle integration needed to improve the JV's profitability would be best achieved under new leadership, a BP spokesperson said Friday.
"All shareholders have agreed that this move is in the best interest of the company," said the source adding that no deadline had been put on sale discussions which had already started. Both local and foreign ethylene suppliers were understood to be interested at this stage but no decision had been taken on the future ownership. The joint venture was established in 1993, and manages a 450,000mt/yr high density/linear low swing PE plant at Merak.

PT Peni had previously considered a JV with local ethylene and PE major, Chandra Asri but the timing had not been suitable, according to BP. The spokesperson said, "the shareholders have now decided that we do not have the time or resources to commit to a merger in order to secure ethylene supply [for this unit]."

BP had also agreed in-principle to sell its 39% share in a PE JV in the Philippines, Bataan Polyethylene, because of poor returns. Bataan's two PE plants have been idle for more than one year. They had come online in 2000 and have a combined capacity of 250,000 mt/yr.

The plants had not been cost competitive either because the Philippines does not produce ethylene locally. BP also operates a PTA joint venture in Indonesia but has no intentions to sell its stake, the source confirmed.

27th March 2003 BP

BP Planning New World-Scale PTA Plant In Belgium

BP announced today that it has begun detailed engineering design for the construction of a new world-scale purified terephthalic acid (PTA) production plant at its Geel petrochemicals site in Belgium.

The detailed design for the new plant will be carried out by Technip Italy (the engineering centre for the Technip-Coflexip Group) over the next nine months. Subject to final BP and other approvals, the company anticipates construction on the new plant would begin in 2004 with the plant coming on stream in early 2006.

The plans envisage construction of a 700,000 tonnes a year PTA plant at Geel. Output from the plant will be primarily targeted at the European market, particularly at fast-growing European polyethylene terephthalate (PET) production, for which PTA is a core feedstock.

Iain Conn, chief executive, BP petrochemicals, said: "PTA is one of BP's core strategic petrochemical products and this investment will reinforce our global leadership position in the business."

Mike Buzzacott, group vice president, BP petrochemicals, added: "This new plant will use our latest generation technology and be extremely well placed to meet the growing demand for PTA across Europe. It also underlines the importance of the Geel site to BP, building on the first-class people, experience and infrastructure available there."

The new plant will confirm Geel as one of BP's main petrochemical manufacturing sites worldwide. The new PTA unit will bring Geel's total PTA production capacity to approximately 1.7 million tonnes a year. In addition to PTA, the Geel site also produces approximately 420,000 tonnes a year of paraxylene, the feedstock for PTA production, 120,000 tonnes a year of purified isophthalic acid (PIA), and 480,000 tonnes a year of polypropylene.

BP is a world leader in the production of PTA, with worldwide production capacity of some 6 million tonnes a year. In addition to European PTA production at Geel, BP also produces PTA from plants in the USA, Brazil, Korea, Indonesia, Malaysia and Taiwan. BP's latest PTA production site, the 350,000 tonnes a year Zhuhai (珠海) joint venture in southern China, was successfully commissioned in January 2003. (BP Zhuhai Chemical Company Limited)

BP is one of the world's largest oil, gas and petrochemicals companies with 2002 chemical sales of $13 billion and production of some 27 million tonnes.

Asian Oil & Gas 2000/11/1                中国JV完成

PTA to the fore in BP ventures

The official groundbreaking for a world-scale purified terephthalic acid (PTA) plant took place in Zhuhai, one of China's special economic zones, in November. Targeted for completion in December 2002, the $408 million complex will be owned and operated by t
he Amoco Zhuhai Chemical Company, a three-year-old joint venture between BP (80%), the Fuhua Group, a subsidiary of the Port Enterprise Group (15%) and the China National Chemical Fibre Company (5%).

Zhuhai is situated in south China's fast-developing coastal province of Guangdong, which has attracted 60% of the total $2.5 billion project investment already made by BP, Amoco and Arco in China since they started developing business there in the 1970s.

PTA is the primary and preferred raw material for making polyester fibres, films and container resin. 'The PTA market in China is very strong, growing faster than any other part of the world at 8% a year,' Zhuhai general manager Linda Shum tells the October edition of BP house magazine Horizon. 'In fact, it's the only country in the world that has a PTA deficit. Demand is near 4 million tonnes a year yet production capacity is only 2 million tonnes. China has to import the balance.'

The new plant will have a nominal capacity of 350,000 tonnes a year which, according to Shum, 'can be easily expanded once any initial teething problems are ironed out'.

A PTA alliance is also being forged at a national level in China. BP announced in September that it intended to invest up to $400 million in the Sinopec initial public offering. Separately, and among a variety of initiatives spanning the oil and gas sector, the two companies signed a memorandum of understanding to build a world-scale PTA manufacturing facility.

This plant will be integrated into the Caojing (formerly Jinshan) ethylene project being undertaken by another joint venture between BP and Sinopec, the Shanghai Petrochemical Company.  

July 30, 2002

China American Petrochemical to become top PTA producer

China American Petrochemical Co. (CAPCO) will become the world's top supplier of pure terephthalic acid (PTA) after its sixth PTA plant starts production in early 2003.

CAPCO, capitalized at NT$7.07 billion (US$211 million), already has five PTA plants in Taiwan. The sixth plant will boost its output capacity to over 2 million metric tons per year.

The new plant is located in an area adjacent to Taichung Harbor. The district had been reserved for the Bayer Group of Germany for the manufacturing of TDI. But Bayer scrapped the plan due to strong local opposition.

Lee Tang-moh, senior vice president of CAPCO, said the sixth PTA plant is designed to meet the needs of the textile companies located on the east coast of mainland China following the three direct links in trade, transportation, and postal services between the mainland and Taiwan.

But the new plant will also cater to demand from the U.S. and European markets, Lee added.
CAPCO is a joint venture of BP-AMOCO, which has a 50 percent stake, and Taiwan's state-run Chinese Petroleum Corp., which holds 25 percent.

21 August 2001

BP to close Wilton polyethylene plant

BP announced today that it will close its low density polyethylene (LDPE) manufacturing operations at Wilton on Teesside. The company cited difficult market conditions as the reason for closing the 100,000 tonne a year plant.

"It is with deep regret that, despite the efforts of everyone at the site and the number of changes embraced in recent years, we have had to make today's announcement," said Donald Austin, BP Wilton site manager.

"In a highly competitive market, it has been increasingly difficult to maintain profitability at the plant. The plant's age and related high costs of production and maintenance combined with competition from newer, larger plants have made Wilton unprofitable and led to this decision."

The plant will cease production at the beginning of October. Decommissioning is expected to continue until the end of the year, and the plant will be dismantled and land cleared during 2002.

Consultations will take place immediately with the 81 BP employees who work at the plant regarding their future and BP commits to ensuring that every effort is made to relocate those with the appropriate skills to other BP locations, or providing re-training, job search assistance and BP's severance package.

BP intends to continue servicing its customers with a range of tubular LDPE products supplied under third party agreements, in addition to its new C6 linear low-density polyethylene (LLDPE) grades made at its Grangemouth, Scotland plant and C4 LLDPE and autoclave LDPE from the company's Erdoelchemie plant in Dormagen, Germany. BP also intends to continue supplying its Masterbatch grades.

The Wilton plant, built in 1973, uses high-pressure autoclave technology to manufacture low-density polyethylene for use by customers in a wide range of products such as film applications.
BP acquired the plant from ICI in 1982.   、