HOUSTON, Oct. 19 /PRNewswire/ -- Sumitomo Chemical Company, Ltd., commemorated today the groundbreaking for the construction of a 200 thousand tons per annum propylene oxide plant in Chiba, Japan, based on the novel proprietary process it has developed.

The plant employs a high-performance catalyst also developed by Sumitomo Chemical and, with its compact configuration, has distinctive advantages over conventional process plants. It is scheduled for completion in late 2002.

Sumitomo Chemical currently undertakes the propylene oxide business through its affiliate, Nihon Oxirane Co., Ltd., which is a joint venture with Lyondell Chemical Company (NYSE: LYO). Sumitomo and Lyondell recently signed a preliminary agreement for global cooperation in the commercialization of the Sumitomo PO-only process.

"We see growth opportunities in the global propylene oxide market and expect additional facilities like this one to come on stream in the future, following the successful start-up of our new propylene oxide plant in Chiba," stated Hiromasa Yonekura, President of Sumitomo Chemical.

"Lyondell and Sumitomo have been partners in the propylene oxide business through Nihon Oxirane for more than 25 years," said Morris Gelb, Executive Vice President and Chief Operating Officer of Lyondell Chemical Company, attending the groundbreaking ceremony of the new propylene oxide plant in Chiba. "The utilization of the technology developed by Sumitomo to produce propylene oxide without co-products would see our joint venture relationship entering a new phase."

Lyondell Chemical Company (www.lyondell.com ), with headquarters in Houston, Texas, is the world's largest producer of propylene oxide (PO); the world's number three supplier of TDI (toluene diisocyanate); a leading producer of propylene glycol; a leading producer of other PO derivatives such as BDO (butanediol) and PGE (propylene glycol ether); and a producer of styrene monomer and MTBE as co-products of PO production. Through its 41% interest in Equistar Chemicals, LP, Lyondell also is one of the largest producers of ethylene, propylene and polyethylene in North America and a leading producer of polypropylene, ethylene oxide, ethylene glycol, high value-added specialty polymers and polymeric powder. Through its 58.75% interest in LYONDELL-CITGO Refining LP, Lyondell is one of the largest refiners in the United States, processing extra heavy Venezuelan crude oil to produce gasoline, low sulfur diesel and jet fuel. Lyondell is the third largest methanol producer in the U.S., through its 75% interest in Lyondell Methanol Company, L.P.

The statements in this release relating to matters that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Actual results could differ materially, based on factors including, but not limited to, future global economic conditions, technological developments, availability of capital markets, industry production capacity and operating rates, the supply/demand balance for Lyondell's and its joint ventures' products, competitive products and pricing pressures, further increases in raw material and/or energy costs, changes in governmental regulations and other risk factors. For more detailed information about the factors that could cause actual results to differ materially, please refer to Lyondell's Annual Report on Form 10-K for the year ended December 31, 2000, filed with the Securities and Exchange Commission in March 2001, and Lyondell's Quarterly Report on Form 10-Q for the quarter ended June 30, 2001, which was filed in August 2001.

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SOURCE Lyondell Chemical Company
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