Plant closures: Ineos Styrolution to close Illinois PS plant; LyondellBasell to close Italian PP plant

Ineos Styrolution has announced that it will permanently close its polystyrene (PS) production facility in Channahon, Illinois, US, with decommissioning expected to conclude in the fourth quarter of 2026. The closure affects approximately 100 employees at the site.

The company says it is dealing with ongoing margin pressures and industry oversupply that threaten the viability of its North American operations. The Channahon facility has been in operation since 1960 and maintains a production capacity of approximately 400,000 tonnes.

"Persistent margin pressures continue to threaten the viability of our North American business as we face ongoing pressure from industry oversupply," said Steve Harrington, CEO of Ineos Styrolution. "Following a thorough evaluation of market conditions, industry utilization rates, the site's cost structure, and long-term outlook, we have concluded that continuing operations at Channahon is no longer economically viable. At the same time, we remain confident in the long-term value of polystyrene."

As part of its asset optimization strategy, Ineos Styrolution will consolidate North American PS production from three sites to two, continuing operations at facilities in Decatur, AL, and Altamira, Mexico. The company expects this consolidation will create a more efficient, focused, and reliable production network.

Despite the closure, Ineos Styrolution says it maintains its commitment to the polystyrene business and will continue serving customers across North America with high-quality materials for healthcare, packaging, appliances, construction, and other applications. The company also plans to continue demonstrating the sustainability and recyclability of PS products.

Meanwhile in other news, LyondellBasell has confirmed it will permanently shut its last remaining polypropylene (PP) plant at its Brindisi, Italy facility by the end of 2026. The closure is a direct result of the upstream Eni Versalis cracker shutdown, which left the plant dependent on high-cost sea-freight feedstock, making operations commercially unviable.

The Brindisi PP unit has a nameplate capacity of 260,000 tonnes/year. It was the first Spheripol unit, opened in 1982, and mainly produces commodity PP homopolymer grades for packaging. Another PP unit at the site was closed by LyondellBasell in 2024.

LyondellBasell says it has opened consultations with trade unions ahead of the planned permanent shutdown.

The decision, the company said, follows an in-depth assessment of the site’s surrounding infrastructure and critical raw material supply.

According to LyondellBasell, the site’s competitiveness has steadily declined, making it increasingly difficult to ensure its long-term sustainability. The company attributed this to a complex macroeconomic environment marked by persistent uncertainty over feedstock availability and structurally high operating and logistics costs.

The Brindisi site had been excluded from the European assets sold recently to German financial group Aequita, leading to the creation of the new company Velogy.

LyondellBasell has also retained the Italian site in Ferrara as part of its “core” activities; there, alongside the Giulio Natta R&D centre, a PP plant remains in operation.

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