LyondellBasell/Covestro to permanently shut down jv propylene/styrene monomers unit in Netherlands
Chemical firms LyondellBasell (LYB) and Covestro have jointly decided to permanently close the Propylene Oxide/Styrene Monomer (POSM) production unit (PO11) at the Maasvlakte site in the Netherlands. The firms say the decision comes after thorough and careful consideration and is driven by the continued pressure on Maasvlakte's profitability due to global overcapacities, a strong increase of imports from Asia and high costs of European production. Unfortunately, this situation is expected to continue, so longer-term profitable production is not anticipated.
The Maasvlakte site, a joint venture between LYB and Covestro, has been operational in the Rotterdam region since 2003. Between now and the end of 2026, LYB will carry out a process to safely shutdown and prepare the demolition of the asset.
In 2024, LYB announced a strategic review of European assets of its Olefins & Polyolefins (O&P) and Intermediates & Derivatives (I&D) business units.
LYB adds it has taken the next step in evaluating the option to seek alternative ownership for the O&P sites in the strategic assessment. At this time no decisions have been made and various outcomes remain possible.
“While the decision to shut down the PO11-unit is difficult, we must ensure all assets within our portfolio are a long-term strategic fit,” said Aaron Ledet, executive vice-president I&D and Supply Chain at LYB. “We are prioritising our core assets which play a key role in our technology differentiation and circularity strategy or provide attractive returns over the cost of capital. We take our obligations towards our employees, European employee reps, councils, and unions seriously. We have engaged with them in line with these obligations and will continue to do so.”
Hermann-Josef Dörholt, Head of the Performance Materials Business Entity at Covestro added, "Due to global overcapacities, persistently weak demand, and high costs in Europe, we have jointly decided with LYB to close the PO11 plant. At the same time, we remain committed to the European market and will continue to supply customers with our renowned polyether polyols portfolio.”
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