LYONDELLBASELL, COVESTRO ANNOUNCE PERMANENT CLOSURE OF MAASVLAKTE PO11 UNIT

KUALA LUMPUR, March 19 (Bernama) -- LyondellBasell (LYB) and Covestro have jointly decided to permanently close the Propylene Oxide Styrene and Monomer (POSM) production unit (PO11) at the Maasvlakte site in the Netherlands.

 This decision follows extensive evaluation and is driven by ongoing profitability challenges at Maasvlakte, including global overcapacities, rising imports from Asia, and high European production costs.

Unfortunately, these conditions are expected to persist, making long-term profitable production unlikely, according to a statement.

Its executive vice-president, I&D and Supply Chain, Aaron Ledet emphasised the importance of focusing on core assets that align with long-term strategic goals, technology differentiation, and circularity, or provide strong returns.

He acknowledged the company's responsibility toward its employees, European worker representatives, councils, and unions, and thanked them for their constructive engagement, noting that LYB will maintain normal operations and continue working closely with customers, suppliers, and stakeholders.

Meanwhile, Covestro head of the Performance Materials Business Entity, Hermann-Josef Dörholt reaffirmed the company’s commitment to its Sustainable Future Strategy and maintaining a competitive position in a challenging market.

Covestro will support LYB in the shutdown process while continuing to supply its polyether polyols portfolio to the European market.

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 shut down and prepare for 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. The company has taken the next step in evaluating the option to seek alternative ownership for the O&P sites in the strategic assessment.

-- BERNAMA