Lyondell Chemical has filed for bankruptcy in New York, citing waning demand for their products in the market. LyondellBasell, one of the world’s largest closely held chemical producers, said it sought protection for its U.S. business because of a “dramatic softening in demand” during the past six months.
The company said in a statement that it expects a recovery during 2009. “Unprecedented volatility in raw materials costs,” has pressurized the company to file for bankruptcy, the statement added.
Lyondell Chemical, based in Houston, has assets of $27.1 billion, debt of more than $19.4 billion and more than 25,000 creditors, according to a petition filed yesterday in U.S. Bankruptcy Court in Manhattan.
Chemical makers including DuPont Co. and Dow Chemical Co. have been shutting factories and cutting jobs as the global financial crisis reduces demand for plastics and chemicals.
