The acquisition by Bayer of the polyols business of Lyondell Chemical was closed on March 31, 2000.

PITTSBURGH — The acquisition by Bayer Corp. of the polyols business of Lyondell Chemical Co., Houston, was closed on March 31, 2000, making Bayer the world’s biggest supplier of polyurethane raw materials. At the same time, Bayer has secured a lasting, cost-efficient supply of propylene oxide, a pre-product in the manufacture of polyols. The $2.45-billion investment represents a long-term strengthening of the group’s core polyurethanes business, as Bayer and Lyondell are also committed to future cooperation in the technology field and in the construction of new manufacturing facilities for propylene oxide.

Worldwide demand for polyurethanes is growing constantly due to their multitude of applications, from solid engineering materials to foams with a broad variety of characteristics. They are widely used in the electrical and electronics industries, thermal insulation, construction of technical parts, the furniture industry, and the manufacture of sports and leisure equipment. Production of polyurethanes requires two components — MDI or TDI, in which Bayer is already a world leader, and polyol.

“We have also gained access to innovative, patent-protected technology and manufacturing processes, which we shall now transfer to our existing facilities,” said Dr. Hans-Joachim Kaiser, general manager of Bayer’s Polyurethanes Business Group. “The anticipated synergies will considerably exceed the integration costs as soon as 2002, so the profitability of our business group will be further improved,” he added.

Parts of the acquisition are the Lyondell polyols manufacturing plants in Institute and South Charleston, W.Va., and Channelview, Texas; European facilities in Rieme, Belgium, and Fos-sur-Mer, France; and companies in Indonesia, Taiwan and Singapore. Altogether, the facilities have an annual capacity of some 700,000 metric tons of polyols. Additionally, Bayer has acquired research centers in Newtown Square, Pa; South Charleston, W.Va.; Villers St. Paul, France; and in Singapore.

For more information about Bayer Polyurethanes, call 412-777-2500, or visit