LyondellBasell, Covestro to Close PO11 Unit in Netherlands
- PO11 unit closure driven by global overcapacity and high European costs.
- Shutdown process to be completed by end of 2026.
- LYB reviewing European Olefins & Polyolefins and Intermediates & Derivatives assets.
Closure Decision
LyondellBasell and Covestro have decided to permanently close the Propylene Oxide Styrene and Monomer (POSM) production unit, known as PO11, at the Maasvlakte site in the Netherlands. This decision follows a detailed evaluation of the site's profitability, which has been adversely affected by global overcapacity, increased imports from Asia, and high European production costs. The companies do not foresee a return to profitable operations in the long term.
Shutdown Timeline
The Maasvlakte site, operational since 2003, will undergo a phased shutdown process, expected to be completed by the end of 2026. LyondellBasell will manage the safe decommissioning and demolition of the facility during this period.
Strategic Review
In 2024, LyondellBasell announced a strategic review of its European assets within the Olefins & Polyolefins and Intermediates & Derivatives business units. The company is exploring options for alternative ownership of these sites, although no final decisions have been made yet.
Commitment to Europe
Despite the closure, both companies remain committed to the European market. Covestro will continue to supply its polyether polyols portfolio, ensuring ongoing support for customers. The companies are engaging with employees, unions, and other stakeholders to manage the transition responsibly.