LyondellBasell mulls Dutch PO/SM plant reorganisation

Spanish Market: Petrochemicals
11/02/25

Chemicals firm LyondellBasell is in negotiations with workers at its Maasvlakte propylene oxide (PO) and styrene monomer (SM) production facility in the Netherlands about "a reorganisation at the plant", Dutch workers' union FNV told Argus.

The union is negotiating with the company on compensation for workers whose jobs may be affected and assistance with transitioning to new roles. Members will vote on the proposed plan by the end of February.

"At this stage, no definitive decisions have been made," LyondellBassell said today. The firm "continuously evaluates business conditions, our portfolio and a wide range of options for managing our assets," it said.

The Maasvlakte PO/SM plant is a 50-50 joint venture between LyondellBasell and Germany's Covestro.

"Covestro regularly reviews its portfolio in the light of business conditions. This includes discussions with our joint venture partner regarding the Maasvlakte site," Covestro said.

LyondellBasell and Covestro both declined to comment on whether they are discussing a possible sale of the Maasvlakte facility.

LyondellBasell launched a strategic review of its European assets last May. The review is ongoing, the firm said last month.

The Maasvlakte plant is one of six ‘non-core' European assets, the company said in August last year.

The facility has 315,000 t/yr of PO capacity and 640,000 t/yr of SM capacity. It began operations in 2003 and employs approximately 160 people.

The plant has been idled since December last year 2024. It has been intermittently idled several times in recent years, reflecting a structural surplus in Europe's PO and SM production capacity. The negotiations with workers indicate LyondellBasell is considering longer-term changes to operations at the site.

Europe's petrochemicals sector remains squeezed by high energy costs, a higher overall cost base compared to other production regions and stagnant regional downstream demand.

LyondellBassell also has 220,000 t/yr of PO and tertiary butyl alcohol (TBA) production capacity in France and 260,000 t/yr of PO and TBA capacity in the Netherlands. It also has a total of 649,000 t/yr of PO and SM capacity in the US that it operates jointly with Covestro, as well as over 1mn t/yr of its own PO and TBA capacity in the US including a 470,000 t/yr plant in Channelview, Texas, which started up in early 2023.

Production margins for PO/TBA facilities, which supply TBA for MTBE production, are generally much more favourable than for PO/SM plants. And lower US energy costs help to make US PO output more cost-efficient than in European production.

US exports of PO to Europe have increased sharply since 2023, reaching 7,800 t/month in 2024, according to US customs data, up from just 760 t/month in 2020 (see graph).

By Laura Tovey-Fall

US PO exports '000 t

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LyondellBasell targets 85pc cracker run rate in 2Q

25/04/25

LyondellBasell targets 85pc cracker run rate in 2Q

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Brazil 1Q PE imports hint at shifting trade patterns

25/04/25

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Washington passes producer responsibility law

24/04/25

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Dow delays Path2Zero ethylene project in Canada

24/04/25

Dow delays Path2Zero ethylene project in Canada

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