February 26, 2025 – Rumors Swirl Around Potential Closure of Maasvlakte Plastic Precursor Plant
Speculation has emerged regarding the possible shutdown of a plastic precursor production facility in the Maasvlakte area of Rotterdam Port, the Netherlands. The plant, jointly operated by LyondellBasell (LYB) and Covestro with a 50% stake each, stands as a giant in the global production of propylene oxide and styrene monomers, playing a pivotal role in the manufacture of key products such as sustainable plastics. In response to these rumors, LYB has stated that no final decision has been made, and the company is currently conducting a comprehensive evaluation of its business operations. LYB has emphasized its strategic commitment to strengthening its core businesses and expanding low-carbon and circular solutions.
According to Dutch media reports, LYB has initiated consultations with labor unions to provide a social security plan for approximately 70 workers. It was reported that on January 8, 2025, LYB notified its employees of the potential closure of the Maasvlakte plant, with the risk of layoffs looming. The FNV union has expressed that employees are feeling uncertain about their future and are engaged in difficult negotiations regarding severance pay and support for job transitions. Since its inception in 2003, the plant has utilized LYB’s proprietary technology to produce chemicals that serve as essential raw materials for numerous everyday products.
In personnel news, LYB announced a significant appointment on February 3, 2025, with Daniel Koch taking over the daily operational management of the Wesseling-Knapsack plant in the Cologne region of Germany. This facility is a major hub for chemical production in Europe. Daniel Koch, with his extensive management experience, will be responsible for driving the plant’s sustainable transformation, including the ambitious goal of producing and selling at least 2 million tons of recycled and renewable polymers annually.
Since the end of 2023, LyondellBasell has been implementing a comprehensive business review plan to assess the profitability of its European plants and consider the closure of less profitable production facilities. However, its circular recycling business has demonstrated robust growth, with a 65% increase in sales in 2024 and a compound annual growth rate of 55% in the sales of recycled and renewable polymers. LyondellBasell is committed to becoming a profitable leader in the market for circular and low-carbon solutions and is expanding its circular recycling business footprint through a series of strategic initiatives.
Facing challenges such as weak global demand, rising raw material costs, and economic uncertainty, LyondellBasell anticipates enhancing its profitability in 2025 through value enhancement programs, business transformations, growth in its CLCS business, and further organic and inorganic growth plans. These efforts aim to navigate industry changes and market competition effectively.