LyondellBasell's Dutch plastic precursor plant faces closure

According to Dutch trade unions FNV and CNV, LyondellBasell's (LYB) plastic precursor production plant in Maasvirat, Port of Rotterdam, Netherlands, may face closure. The plant is a 50/50 joint venture between LyondellBasell and Covestro, operated by LYB. The plant's production of propylene oxide and styrene monomers is among the largest in the world and is essential for the manufacture of sustainable plastics and other key products.

In response, LYB said that "no clear decision has been made" and "according to policy, we do not comment on market rumors or speculation." The company stressed that it is continuously evaluating the business situation, asset management strategy and alignment with the company's goals, including strengthening core businesses, expanding low-carbon and circular solutions, and improving overall performance.

However, Dutch media reported that LYB is in discussions with trade unions to develop a social plan for the 70 employees affected. LYB allegedly notified employees on January 8, 2025 that the Maasvirat plant would be closed and layoffs were inevitable. The FNV union reported that employees are uncertain about their future and are negotiating severance packages and job transition support.

Last year, LYB announced a strategic review of its European assets in the fields of olefins, polyolefins, and chemical intermediates and derivatives. In May 2024, CEO Peter Vanacker said LYB was considering various countermeasures, including asset sales, plant upgrades, restructuring or closures, to cope with high energy costs and lack of raw materials in Europe.

As a co-owner of the Maasvlakte plant, Covestro is also preparing for acquisition by Abu Dhabi National Oil Company and implementing cost-cutting measures. As part of its global transformation plan, Covestro aims to improve operational efficiency, accelerate digitalization, and expand its innovation pipeline to respond to changing market dynamics. The company stressed the need to streamline production, administrative functions and other business areas to remain competitive.

The Maasvlakte plant began operations in 2003 and uses LYB's proprietary propylene oxide and styrene monomer technology to produce chemicals that are essential components for sustainable plastics, clothing, household products and building materials.

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