Rotterdam: LyondellBasell and Covestro have jointly 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 current and projected economic environment, indicating sustained challenges in profitability caused by global overcapacities, increased imports from Asia, and high European production costs.

According to BERNAMA News Agency, the situation at Maasvlakte is anticipated to persist, making long-term profitable production unlikely. Aaron Ledet, executive vice-president of I and D and Supply Chain, stated that while the decision was difficult, the focus remains on ensuring that all assets align with the company’s long-term strategic goals. The priority will be on core assets that contribute to technology differentiation, circularity, or offer attractive returns above the cost of capital.

LyondellBasell and Covestro have committed to fulfilling their responsibilities toward employees and engaging with European employee representatives, councils, and unions. They intend to maintain open communication with customers, suppliers, and other stakeholders, ensuring that business operations continue without disruption and maintaining a strong customer and supplier experience.