In 2001, despite the adverse economic environment, the Petrochemicals and Plastics segment continued to modernize its sites and complete capacity expansion projects. Operating income was steady for Intermediates and Performance Polymers, excluding the effects of disposals. Specialty Chemicals held up despite deteriorating economic conditions in the United States.

The Chemicals sector had non-Group sales of 19.6 billion euros, down 6% compared with 2000. Operating income excluding non-recurring items was down 33% to 1.10 billion euros, compared with 1.63 billion euros in 2000.
A disposal plan has been initiated to divest non-strategic assets in the Chemicals sector, and a restructuring plan was set up to refocus R&D, harmonize information systems, restructure the different headquarters operations and other activities relating to the production sites.

Petrochemicals & Plastics
In Europe, work continued to de-bottleneck the steam crackers at Anvers and Carling. In France, a new 375km ethylene pipeline linking the Carling site to the Viriat underground storage facility became operational ... In the United States, the steam cracker built under a joint venture between TotalFinaElf (40%) and BASF (60%) at the Port Arthur site in Texas started up. The plant has an initial ethylene production capacity of 920,000 metric tons per year and is integrated into the Group's nearby refinery. It will supply ethylene, propylene and aromatics to the Group's U.S. petrochemicals plants ... In Carville, Louisiana, the world's largest polystyrene plant, with a capacity of 230,000 metric tons per year, came on stream ... In Qatar, Atofina and Qatar Petrochemical Company Limited (Qapco), in which the Group holds a 10% stake, signed an agreement with Qatar Petroleum, a national company of Qatar, and Chevron Phillips Chemical for the construction of an ethane cracker in Ras Laffan. The new cracker, with an initial production capacity of one million metric tons per year upgradable up to 1.5 million metric tons per year, will be the largest in its class. Dolphin, another of the Group's projects in the development phase, will supply gas to the plant ... The new Qatar Vinyl Corporation (QVC) plant came on stream. With a production target of 270,000 metric tons of chlorine per year, the plant will serve as a springboard in the Middle East for the chlorochemicals market. The Group is a 12.9% shareholder in QVC, alongside Qatar Petroleum, Qapco (in which Atofina holds a 10% stake) and Norsk Hydro.

Intermediates and Performance Polymers
Several agreements were signed for the sale of various businesses, including flexible packaging (Soplaril) and chemical products for the aviation and metals processing sector (Turco) ... In France, a new specialty acrylic and methacrylic monomer plant started production in Carling, bringing the site's total production capacity to 50,000 metric tons per year. Specialty acrylic and methacrylic monomers are used in strong growth markets such as water treatment products and resins ... Additional production capacity came on line for specialty polyamid monomers in Marseille and Mont (France) ... In the United States, an acrylate production plant and, as part of a production joint venture, an acylic acid plant were under construction at the same site in Bayport, Texas. Both plants should start up in the first half of 2002 ... In China, a new fluorinated compounds production plant started up in Changshu and a hydrogen peroxide production unit became operational in Shanghai.

Specialty Chemicals
In industrial rubber, Hutchinson's growth focused on internal growth and the integration of businesses acquired in 2000, namely Barry Controls in industrial and aeronautic vibration isolators and Söke in the mass market for cleaning products. In resins, production capacities were upgraded: In the United States, construction of a new powdered resin plant at the North Kansas City site; in France, construction of a new monomer and oligomer production plant at the Villers Saint Paul site.