The plastics precursors production plant in Maasvlakte, located in the Port of Rotterdam, Netherlands, is facing possible closure, according to Dutch trade unions FNV and CNV. The site is a 50-50 joint venture between LyondellBasell (LYB) and Covestro, with LYB operating the facility. It produces propylene oxide and styrene monomer at one of the world's largest scales, essential for manufacturing sustainable plastics and other key products.

In response to Sustainable Plastics’s inquiries, LYB stated that "no definitive decisions have been made" at this stage. The company emphasized its ongoing evaluation of business conditions, asset management strategies, and alignment with its corporate goals, including strengthening its core business, expanding low-carbon and circular solutions, and enhancing overall performance. "As a matter of policy, we do not comment on market rumors or speculation," LYB told Sustainable Plastics.

However, Dutch media reports suggest that discussions are underway between LYB and trade unions to secure social plans for approximately 70 of the 120 workers expected to be affected by the closure. Allegedly, LYB informed employees on January 8, 2025, that the Maasvlakte site would shut down, with job redundancies being unavoidable. The FNV union reported that employees have been experiencing uncertainty about their future and are negotiating severance packages and job transition support.

This development follows LYB's announcement last year of a strategic review of its European assets in olefins, polyolefins, and chemical intermediates and derivatives. In May 2024, CEO Peter Vanacker indicated that LYB was considering various options, including asset sales, plant upgrades, restructuring, or closures, in response to high energy costs in Europe and the absence of feedstock advantages.

Covestro, the co-owner of the Maasvlakte site, is also implementing cost-cutting measures as it prepares for its acquisition by ADNOC. As part of its "Strong" global transformation program, Covestro aims to improve operational efficiency, accelerate digitalization, and expand its innovation pipeline in response to evolving market dynamics. The company stressed the need to streamline production, administrative functions, and other business areas to remain competitive.

The Maasvlakte plant, which began operations in 2003, is based on LYB’s proprietary propylene oxide and styrene monomer technology. Its design is modeled after a similar LYB facility in Channelview, Texas. The chemicals produced at the site serve as fundamental building blocks for sustainable plastics, clothing, household products, and construction materials.

While the final decision on the plant's fate remains uncertain, the potential closure marks a significant shift in LYB’s European operations and underscores the broader challenges facing the chemical industry in the region.