LyondellBasell (LYB) and Covestro have jointly decided to permanently close the Propylene Oxide / Styrene Monomer (POSM) production unit (PO11) at their Maasvlakte site in the Netherlands. The decision follows a comprehensive evaluation of market conditions, including ongoing profitability pressures from global overcapacities, increased imports from Asia, and the high cost of European production. Given these challenges, long-term profitable operations were not anticipated.

“While the decision to shut down the PO11 unit is difficult, we must ensure all assets within our portfolio are a long-term strategic fit,” said Aaron Ledet, executive vice president of I&D and supply chain at LYB. “We are prioritizing core assets that support our technology differentiation and circularity strategy or provide attractive returns over the cost of capital. We take our obligations to employees, European employee representatives, councils, and unions seriously and have engaged with them in accordance with these commitments. We appreciate their constructive dialogue and will continue these discussions. Additionally, we remain in communication with customers, suppliers, and stakeholders across the value chain and will maintain business as usual, ensuring continuity in our operations.”