March 19, 2025 – LyondellBasell and Covestro have jointly announced the permanent shutdown of the PO/SM production unit, PO11, located at their Maasvlakte plant in the Netherlands. This decision comes amidst global chemical market oversupply, a surge in Asian imports, and persistently high production costs in Europe, aiming to address the ongoing profitability challenges faced by the Maasvlakte facility.
According to ColorMasterbatch Industry Network, the PO11 plant, operational since 2003, has been utilizing LyondellBasell’s advanced technology, boasting an annual production capacity of 300,000 tons of propylene oxide and 635,000 tons of styrene. However, in recent years, the plant has experienced multiple intermittent shutdowns due to economic reasons, ultimately ceasing operations in December 2024. The closure decision affects over 160 employees at the site, with LyondellBasell set to lay off fewer than 60.
Both companies have stated that they will initiate procedures for the shutdown and subsequent demolition of the POSM plant from now until the end of 2026. Aaron Ledet, Executive Vice President for Intermediates and Derivatives (I&D) Business and Supply Chain at LyondellBasell, noted that while the decision to close the PO11 plant is difficult, it is necessary to ensure that all assets within the company’s portfolio align with its long-term strategy. The company will prioritize the development of core assets that play a crucial role in technological differentiation and circular strategies, or those that offer returns more attractive than the cost of capital.
Hermann Josef Dörholt, Global President of Covestro’s Functional Materials business unit, echoed similar sentiments. He mentioned that as part of its strategy for a sustainable future, Covestro has been striving to be a reliable partner for its customers and maintain competitiveness in a challenging market environment. However, given the current global oversupply, persistently weak demand, and high costs in Europe, the joint decision with LyondellBasell to close the PO11 plant is a strategic move for the long term.
It is worth noting that LyondellBasell is also conducting a strategic review, considering finding new owners for some of its European olefins and polyolefins (O&P) assets. Meanwhile, Covestro emphasized that despite the closure of the PO11 plant, the company remains committed to the European market and will continue to supply customers with key propylene oxide derivatives such as polyether polyols.