North America Force Majeure Update (Jan. 6, 2006)

Dear Customer,

I am happy to report that effective immediately, Basell is lifting its September 26, 2005 declaration of force majeure as to all of its commercial sales of polypropylene in North America, except, as set forth below, as to sales of polypropylene produced at Basell’s Sarnia, Ontario plant.  While our manufacturing, inventory and transportation situations have not yet fully returned to pre-hurricane levels, Basell believes that it is now in a position to be able to meet its customers’ production and delivery needs.  We thank you for your patience, understanding and support during this incredibly difficult time, and we are happy that through hard work and unprecedented cooperation at all levels, we have been able to minimize the effects of the disruptions caused by the hurricanes.

With regard to Sarnia, as we previously notified you, Nova Chemicals, the monomer supplier to our Sarnia plant, declared force majeure as a result of a maintenance shutdown at its Corunna facility.  Nova is not yet producing monomer in quantities sufficient to meet our needs.  Therefore, Basell cannot confirm the availability of all products requested from the Sarnia plant and the declaration of force majeure as to material from that plant must remain in effect.

Finally, please note that the revocation of force majeure as to Basell’s polypropylene production in North America does not apply to the production of PCMA materials, Lupolen materials or materials produced using the Catalloy process.  Those declarations of force majeure remain in effect.

Again, thank you for your support and cooperation.  We look forward to strengthening our commercial relationship in 2006 and beyond.


Sincerely,
 
Randy G. Woelfel
President


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