Bayer AG and Lyondell Chemical Co announced the formation of a joint venture to build and operate a major production facility for polypropylene oxide and styrene in Rotterdam, The Netherlands.

Bayer AG, Leverkusen, Germany, and Lyondell Chemical Co., Houston, announced the formation of a joint venture to build and operate a major production facility for polypropylene oxide and styrene in Rotterdam, The Netherlands. The 500-million-euro plant is expected to begin production in 2003, and will be owned 50% each by the two companies. Bayer and Lyondell also will split the plant’s annual production of 285,000 metric tons of polypropylene oxide and 640,000 metric tons of styrene. Bayer said the project will ensure adequate supplies of polypropylene oxide, a base material for the production of polyols used in polyurethanes. Bayer earlier this year acquired Lyondell’s polyols business, which made Bayer the world’s biggest producer of polyurethane raw materials.