LyondellBasell and Covestro to Permanently Close PO11 Unit in Maasvlakte, Netherlands

LYB and Covestro have decided to permanently shut down the PO11 Propylene Oxide / Styrene Monomer (POSM) unit at the Maasvlakte site in the Netherlands. The closure follows extensive evaluation, driven by persistent profitability challenges from global overcapacity, rising Asian imports, and high European production costs. These conditions are expected to continue, making long-term profitable production unlikely.

"We are prioritizing our core assets which play a key role in our technology differentiation and circularity strategy or provide attractive returns over the cost of capital. We take our obligations towards our employees, European employee reps, councils, and unions seriously. We have engaged with them in line with these obligations and will continue to do so. We would like to thank them for the constructive dialogue. We are also in communication with customers, suppliers and other parties across the value chain and will continue to do business as usual. There is no change to our working relationship, and we continue to focus on providing an exceptional customer and supplier experience"

"As part of our Sustainable Future corporate strategy, we’re continuously working to optimally position Covestro to be a reliable partner for our customers and to operate competitively in a challenging market environment"

"Due to global overcapacities, persistently 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 as socially responsibly as possible. At the same time, we remain committed to the European market and will continue to supply customers with our renowned polyether polyols portfolio"

The Maasvlakte site, a joint venture between LYB and Covestro, has been operational in Rotterdam since 2003. LYB will safely shut down and prepare for demolition of the asset by the end of 2026.

In 2024, LYB began a strategic review of its European Olefins & Polyolefins (O&P) and Intermediates & Derivatives (I&D) assets. As part of this assessment, LYB is exploring alternative ownership options for the O&P sites. No decisions have been made yet, and various outcomes are still possible.

Source: Covestro AG