Geelong-based national polymer manufacturer and distributor LyondellBasell Australia is being acquired by Viva Energy Group.
Viva Energy says the acquisition will be a key step in the development of the company’s Energy Hub.
LyondellBasell is the country’s only polypropylene manufacturer, supplying the Australian and New Zealand market with raw material for the production of diverse plastic products ranging from food packaging and medical equipment to polymer bank notes.
Its 60 strong customer base runs across Australia, New Zealand, Asia, India, the Middle East and North America.
According to Viva the business is “strongly complementary to Viva Energy’s refining operations”, with the refinery’s propylene production used as the feedstock in LyondellBasell’s existing manufacturing operations.
LyondellBasell Australia has its production facility located inside the footprint of Geelong Refinery.
Viva Energy says LyondellBasell has “a strong market position”, manufacturing and importing a range of polymers with both broad market use and specialist applications.
It says the acquisition broadens the scope of Viva Energy’s manufacturing capability, and further diversifies its product mix and marketing opportunities, saying the business has good fundamentals and a solid operating model, with potential for growth.
LyondellBasell employs approximately 100 people across manufacturing, supply chain and marketing operations. According to Viva the production facility at Geelong “plays an important role” in the optimisation of the Geelong refinery.
Scott Wyatt, CEO of Viva Energy, said, “This acquisition is another step in the development of our Geelong Energy Hub and the further diversification of our Commercial and Industrial businesses. This facility and its manufacturing capability are vital to the economies of Victoria and Australia, and can have important roles to play in Australia’s circular economy through the recycling of plastics. The acquisition of this business opens the door for innovation and the development of new business opportunities.”
Mitchell Killeen, managing director of LyondellBasell said, “The company has a proud operational and trading history in Geelong and Australia, and we are excited to see this continue under Viva Energy’s ownership.
“As part of the transaction, we have agreed that Viva Energy will become our local distributor and we look forward to working with it. Just last month, Prime Minister Scott Morrison identified plastics as one of seven key manufacturing sectors of national interest. This business has an important role in Australia’s future.”
The transaction is for 100 per cent of LyondellBasell through a share sale. According to Viva the long-term business arrangements will “deliver value” for both Viva Energy and LyondellBasell.
LyondellBasell’s Geelong site was built in 1979 and is located 70 kilometres south west of Melbourne. There is an onsite Market Development Laboratory that provides technical and product development support. In 2008, the site became the first plastics manufacturer in Australia to sign a Sustainability Covenant with the EPA Victoria and Chemistry Australia. Site expansions have included a technical upgrade which increased overall plant capacity by 85 percent in 2006.
LyondellBasell Australia has also been acknowledged by the Australian Packaging Covenant Organisation (APCO), in a number of awards, including APCO Award in the Packaging Manufacturers and Suppliers Sector (2020, 2021), APCO Sustainable Packaging Excellence Award (2020) and APCO Award in the Chemistry and Agriculture (2018, 2019).
