Rotterdam: LyondellBasell (LYB) and Covestro have jointly decided to permanently close the Propylene Oxide Styrene and Monomer (POSM) production unit (PO11) at the Maasvlakte site in the Netherlands. This decision comes after an extensive evaluation process focused on the unit’s ongoing profitability challenges, including global overcapacities, rising imports from Asia, and high European production costs.

According to BERNAMA News Agency, these conditions are expected to persist, making long-term profitable production unlikely, as stated in a joint statement by the companies. Aaron Ledet, LYB’s executive vice-president of I and D and Supply Chain, emphasized the importance of focusing on core assets that align with long-term strategic goals, technology differentiation, and circularity, or provide strong returns.

Ledet acknowledged the company’s responsibility toward its employees, European worker representatives, councils, and unions. He expressed gratitude for their constructive engagement and noted that LYB will maintain normal operations while continuing to work closely with customers, suppliers, and stakeholders.

Meanwhile, Hermann-Josef D¶rholt, head of Covestro’s Performance Materials Business Entity, reaffirmed the company’s commitment to its Sustainable Future Strategy and maintaining a competitive position in a challenging market. Covestro will support LYB in the shutdown process and continue to supply its polyether polyols portfolio to the European market.

The Maasvlakte site, a joint venture between LYB and Covestro, has been operational in the Rotterdam region since 2003. LYB plans to safely shut down the unit and prepare for its demolition by the end of 2026. In 2024, LYB announced a strategic review of European assets of its Olefins and Polyolefins (O and P) and Intermediates and Derivatives (I and D) business units, exploring the option of seeking alternative ownership for the O and P sites as part of the strategic assessment.