Lyondell to Discontinue Direct Deicer Sales

25-Aug-2009 - USA

Lyondell Chemical Company announced that it intends to exit the aircraft deicer market as a direct seller but will continue to supply that market with propylene glycol (PG), the primary component of deicers.

"We have made a strategic decision to transition from being a direct participant in the aircraft deicer business to a propylene glycol supplier with the capacity, flexibility and infrastructure necessary to meet the demanding requirements of this market. The deicer market will continue to be a key outlet for our PG, but our intended future role will be as a bulk supplier of propylene glycol," said Patrick Quarles, Senior Vice President of Intermediates & Derivatives for LyondellBasell.

"The chapter 11 process has provided us with a unique opportunity to transition out of the deicer business as a direct supplier," Quarles said. Lyondell recently notified customers that offers and proposals to supply deicers for the 2009-10 winter season had been withdrawn. The company has requested relief from the bankruptcy court with respect to existing supply contract obligations. "We remain committed to the deicer business but our anticipated future participation will be one step removed from the airlines and airports that utilize this product," Quarles said.

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