LyondellBasell (LYB) and Covestro have jointly decided to permanently shut down the Propylene Oxide Styrene Monomer (POSM) production unit (PO11) located at the Maasvlakte site in the Netherlands. This decision follows extensive evaluation and is primarily driven by ongoing economic challenges, including global overcapacity, increased imports from Asia, and elevated European production costs. These unfavorable conditions are projected to persist, making sustained profitable production at the facility unlikely.

"While the choice to close the PO11 unit is a difficult one, we must focus on aligning our portfolio with our long-term strategic goals," stated Aaron Ledet, LYB's executive vice president of I&D and Supply Chain. "Our priority is investing in core assets that differentiate our technology, enhance circularity, or offer strong returns above capital costs. We are committed to supporting our employees, European employee representatives, councils, and unions throughout this transition. We have been in active dialogue with these groups and will continue to engage with them constructively. Additionally, we are working closely with our customers, suppliers, and other partners to ensure continuity in business operations without disruptions."

Covestro's Performance Materials Business Entity leader, Hermann-Josef Dörholt, also commented: "In alignment with our Sustainable Future Strategy, Covestro is dedicated to maintaining its competitiveness in a challenging market environment. The joint decision with LYB to close the PO11 plant reflects ongoing global overcapacity, persistently low demand, and rising European costs. We will support LYB in implementing this transition responsibly and fairly. Despite this closure, we remain committed to serving the European market with our trusted polyether polyols portfolio."

The Maasvlakte site has been a joint venture between LYB and Covestro since its launch in the Rotterdam region in 2003. LYB is scheduled to manage the safe shutdown and preparation for the site's demolition by the end of 2026.

In 2024, LYB announced a strategic review of its European Olefins & Polyolefins (O&P) and Intermediates & Derivatives (I&D) assets. As part of this assessment, LYB is also exploring the potential for alternative ownership of O&P sites. While no decisions have been finalized, LYB continues to evaluate possible outcomes for these facilities.

LyondellBasell (LYB) is a prominent global chemical industry leader dedicated to creating sustainable solutions for everyday living. By leveraging advanced technology and strategic investments, LYB actively supports the transition to a circular and low-carbon economy. The company is committed to delivering value to its customers, investors, and society through all its endeavors. As one of the world's largest polymer producers and a pioneer in polyolefin technologies, LYB develops, manufactures, and markets high-quality, innovative products used in diverse applications such as sustainable transportation, food safety, clean water, and quality healthcare.