Lyondell Chemical Co., Houston, announced the launch of the POLYMEG(r) PTMEG (polytetramethylene ether glycol) polyols product line, formerly supplied by Penn Specialty Chemicals Inc. The company also announced a capacity increase for the production of tetrahydrofuran (THF), a solvent used in coatings and other products. PTMEG, manufactured through the polymerization of THF, is used in the production of urethanes. Lyondell said Penn Specialty Chemicals will continue to manufacture the products under an exclusive supply agreement. Lyondell said it will supply Penn Specialty Chemicals with 1,4-butanediol (BDO), a key feedstock for both THF and PTMEG, from Lyondell's global BDO operations. Lyondell's BDO production capabilities include a new 275-million pounds-per-year plant currently in a start-up phase in The Netherlands.