LyondellBasell and Covestro Announce Permanent Closure of PO11 at Maasvlakte

LyondellBasell (LYB) and Covestro have jointly decided to permanently close the Propylene Oxide Styrene and Monomer (POSM) production unit (PO11) at the Maasvlakte site in the Netherlands. This decision was made after careful consideration and is based on the continued pressure on profitability at Maasvlakte due to global overcapacity, significantly increased imports from Asia and high production costs in Europe. Unfortunately, this situation is expected to continue and therefore long-term profitable production is not expected.

“While the decision to close the PO11 unit was difficult, we must ensure that all assets in our portfolio are aligned with the long-term strategy,” said Aaron Ledet, Executive Vice President of I&D and Supply Chain at LyondellBasell. "We are prioritizing core assets that play a key role in our technological differentiation and circularity or offer attractive returns above the cost of capital. We are also in communication with customers, suppliers and other parties along the value chain and will continue to conduct business as usual. We remain focused on providing an excellent customer and supplier experience."

"As part of our strategy for a sustainable future, we are continuously working to make Covestro a reliable partner for our customers and remain competitive in a challenging market environment," said Hermann-Josef Dörholt, head of Covestro's High Performance Materials business entity. "Due to global overcapacity, continued weak demand and high costs in Europe, we have jointly decided with LYB to close the PO11 plant. We will support LYB in implementing this change in a socially responsible manner wherever possible. At the same time, we remain committed to the European market and will continue to offer our well-known polyether polyols portfolio to our customers."

The Maasvlakte plant is a joint venture between LYB and Covestro and has been operating in the Rotterdam area since 2003. Between now and the end of 2026, LYB will implement a safe closure process to prepare for the dismantling of the asset.

In 2024, LYB announced a strategic review of the European assets of its Olefins & Polyolefins (O&P) and Intermediates & Derivatives (I&D) business units. LYB has taken the next step in the strategic review to evaluate options for seeking alternative ownership of the O&P plant. No decision has been made and various outcomes remain possible.