News Release

Groundbreaking to strengthen competitiveness of SunAllomer

2009/3/12

Oita, Japan, March 12, 2009 - SunAllomer Ltd., a joint venture of LyondellBasell Industries, Showa Denko K.K. and Nippon Oil Corporation, held a groundbreaking ceremony on March 12 in Oita to mark the start of construction of the company’s polypropylene (PP) plant capacity expansion and improvement project which was announced last year.

The project includes the expansion of one PP production line by 60,000 tons per year. This line will also be converted to LyondellBasell’s industry-leading Spheripol manufacturing process. This conversion will help SunAllomer achieve energy-related improvements, such as a reduction in CO2 emissions by 12%, as well as streamlined plant operations.

The Oita plant’s third line, based on the Spheripol process, will also be upgraded to produce high-rubber content PP for further product differentiation in niche applications. Engineering activities for the project are scheduled for completion in April 2010.

“The project will further strengthen SunAllomer’s competitiveness,” said Godard von Ilsemann, president and CEO of SunAllomer. “By providing more value-added products to the demanding Asian market, as well as improving our manufacturing capabilities, we will be strategically positioned for long-term growth.”

The new grades will feature high rubber content, excellent rigidity and outstanding impact resistance, which are designed to reduce the weight and processing costs of customers’ molded products, especially in the food packaging and automotive segments.

SunAllomer has also reinstituted its original company vision, “Differentiation”, which aims to establish the company as the preferred supplier by offering unique products and services.

SunAllomer, a joint venture of LyondellBasell Industries, Showa Denko K.K. and Nippon Oil Corporation, is one of Japan’s key polypropylene producers.

SunAllomer combines the global leadership of LyondellBasell with the local expertise of two of Japan’s leading industrial companies. By building on these strengths, SunAllomer delivers sustainable value to a variety of industries such as Automotives, Electronics, Food packaging, Housewares and others, by offering innovative polypropylene and compounds that address customers’ most challenging application requirements..

The company works closely with both customers and suppliers to generate value-adding business relationships. The company has a strong commitment to protecting the environment and carries out all its activities with a strong dedication to quality, health and safety.

Spheripol is a trademark of LyondellBasell Industries.

For further information, please contact:
GA, HR & Compliance Group, Corporate Service Division, SunAllomer Ltd.
(Tel: 03-5781-5608)

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