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.”

"As part of our Sustainable Future corporate strategy, we continuously work to optimally position Covestro as a reliable partner for our customers while operating competitively in a challenging market environment," said Hermann-Josef Dörholt, head of the Performance Materials business entity at Covestro. "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 transition as responsibly as possible. At the same time, we remain committed to the European market and will continue supplying customers with our renowned polyether polyols portfolio.”

The Maasvlakte site, a joint venture between LYB and Covestro, has been operational in the Rotterdam region since 2003. A phased shutdown process will take place between now and the end of 2026, ensuring a safe and structured decommissioning.

In 2024, LYB announced a strategic review of its European Olefins & Polyolefins (O&P) and Intermediates & Derivatives (I&D) business units. As part of this review, the company is evaluating potential alternative ownership options for its O&P sites, though no final decisions have been made.