Spanish oil and chemicals group Repsol SA has announced the construction of a new plant for metallocene linear polyethylene at its Tarragona Petrochemical Complex in Spain.
The amount invested in the plant has not been disclosed.
The new plant will be the first to produce the material outside the of the U.S. with Chevron Phillips Chemical's technology, which came as a result of the technology licensing agreement reached between both companies in 2014.
Construction of the plant will begin in June. Madrid-based Repsol said it planned to shut down production for three months at its high density polyethylene plant in Tarragona, as the manufacture of both products share critical facilities and equipment.
However the group said the halt would be split into two separate phases of one and a half months to avoid a three-month interruption in production.
The company said that it has already sent all its customers confirmation of the individual HDPE volume that it plans to supply to each of them, and says that due to this, despite the difficult times Europe faces regarding high density polyethylene supplies, Repsol does not intend to declare force majeure