Chemicals > Petrochemicals & Plastics
| Petrochemicals & Plastics | Intermediates & Performance Polymers | Products that change life | Specialties |


Petrochemicals and Plastics account for 38% of Chemicals sales. Present throughout the chain, with the production of aromatics, olefins, polyolefins, styrenes, vinyl polymers and compounds, as well as pipes and sections, this activity benefits from strong integration with refining, world-scale facilities, and cutting-edge technologies - all of which are major growth vectors.
Its centers of excellence are located in Europe - in Belgium, at Antwerp and Feluy; in France at Carling, Gonfreville, Balan, St. Fons, Fos and Lavéra - and in the southern United States, in Port Arthur, Houston and Bayport (Texas), and Carville (Louisiana).
Sales of 8 billion euros, up 45% over 1999, and operating income of 0.55 billion euros, up 244%, showed significant progress.



In Basic Chemicals, the major projects initiated in 1999 in Europe and in the United States entered their implementation phase. Examples include the steamcracker at Port Arthur (Texas) and the ethylene pipeline from the Carling steamcracker to the Viriat storage facilities in France.
In the United States, the construction of plants adjoining the steamcracker and the Port Arthur refinery - for butadiene extraction and indirect alkylation - as part of a joint venture between TotalFinaElf (16%), BASF (23%) and Shell (61%), was confirmed in 2000. This project also includes an olefin production plant using the metathesis process, to be run jointly by TotalFinaElf and BASF. The plants are due to come on stream in 2003.
In Europe, the proposed extension of the Carling steamcracker in France to 570,000 tons a year was launched. This extension, which will come on stream at the end of 2001, will reinforce the Group's position as a European leader with ethylene capacity exceeding 2.5 million tons.
Major developments also occurred in Polymers, where sales rose by 5% over 1999.

In polyethylene, TotalFinaElf launched construction of a new bimodal high density polyethylene line at its Antwerp site, scheduled for start-up in mid-2002. The materials produced at this plant will consolidate the Group's marketing positions in the polyethylene pipe sector.

In polypropylene, TotalFinaElf completed the demerger of the Appryl joint venture with BP. Under the terms of the agreement reached with BP, TotalFinaElf took over the Gonfreville site, where capacity was increased to 200,000 tons at the end of 2000, as well as the compounds activities for automotive applications. TotalFinaElf and BP also set up a manufacturing joint venture on the Lavéra site, with production split between both partners. BP, in addition, took over completely the Grangemouth site. TotalFinaElf is the world's third-largest manufacturer of polypropylene, with combined production capacity in excess of 2 million tons in the United States and in Europe after the new Feluy plant is commissioned in the second half of 2001.

In styrene derivatives, TotalFinaElf launched a program to increase its polystyrene capacity, which will further boost its ranking as the world's fourth-ranked producer.
This program entails the extension by over 100,000 tons of the Carling (France) and Prat (Spain) capacity in Europe, and the construction of a new 230,000-tpa line, the largest in the world, on the Carville site in Louisiana. This additional capacity will reinforce the new fire-retardant polystyrene compound plant started up in Thailand for the consumer electronics market in 2001, and a twofold increase in the Finaclear styrenic elastomer capacity in Antwerp, which is due to become operational in mid-2001.

In chlorochemicals, the January 2000 integration of PVC activities acquired from Shell on the Berre site in France ranks the Group third in Europe in this sector. The new Balan production plant in France was opened in the fall of 2000. In addition, TotalFinaElf endorsed the Voluntary Commitment of the PVC Industry that was submitted to the European Commission in October 2000.

DEVELOPING RESEARCH

Atofina's research activities - which is a paramount driving force for innovation, and therefore future growth - employ 5,000 people in major projects, in some 15 research centers in France, Belgium, Germany, the United Kingdom, the Netherlands, the United States, and Japan. Annual R&D expenditure is approximately 500 million euros, and involves the Chemical branch's three core segments:
Petrochemicals and Plastics (100 million euros), Intermediates and Performance Polymers (180 million euros), and Specialty Chemicals (220 million euros).

• In Petrochemicals and Plastics, Atofina relies on its proprietary technologies. Research is conducted primarily in Belgium, France and the United States, and focuses on metallocene catalysts for polypropylene and polyethylene and on radical polymerization technology for polystyrene.

• In Intermediates and Performance Polymers, research programs focus on improving processes and enhancing applications of the products in which Atofina has established a leading position. Sectors benefiting from these innovations include the automotive industry, construction, and packaging.

• In Specialty Chemicals, technical co-operation with industry also acts as the driving force for wide-ranging research activity centered in particular on acoustics and antivibration parts for Hutchinson, and developing environmentally-friendly tin-free paints and antifouling coatings for SigmaKalon. Atotech's research program notably covers the replacement of copper by aluminum in electronic chips. Finally, Cray Valley is achieving very encouraging results with new photocurable resins for use in varnishes for inks, wood, adhesives, electronics, and fiber optics.


| Petrochemicals & Plastics | Intermediates & Performance Polymers | Products that change life | Specialties |