LyondellBasell (LYB) and Covestro have jointly decided to close permanently the propylene oxide/styrene monomer (POSM) production facility at the Maasvlakte site in the Rotterdam region. The joint operation, in which LYB and Covestro hold an interest of 50% each, operates under the name “LyondellBasell Covestro Manufacturing Maasvlakte V.O.F.”
The decision, which was taken after a thorough review, is due to continuing pressure on the profitability of the site in Maasvlakte because of global surplus capacities, a sharp rise in imports from Asia, and high production costs in Europe. This situation is expected to continue and production is therefore not expected to be profitable in the longer term. Until the end of the year 2026, LYB will carry out a process for the safe closure of the facility and make preparations for its demolition.
This action marks another step in the global transformation program STRONG, which was launched in the year 2024. For this action, expenses in a high double-digit million euro range were recognized and affected EBITDA in the first quarter of 2025; they are attributable to the Performance Materials segment. The other costs incurred for the transformation program in the first quarter of 2025 were not material.