LyondellBasell and Covestro Announce Permanent Closure of Maasvlakte POSM Unit Amid Market Pressures
March 18, 2025 – LyondellBasell (LYB) and Covestro have confirmed the permanent closure of the Propylene Oxide Styrene Monomer (POSM) production unit (PO11) at their Maasvlakte site in the Netherlands. The decision follows ongoing market challenges, including global overcapacity, increasing imports from Asia, and high European production costs, making long-term profitability unfeasible.
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| LyondellBasell and Covestro Announce Permanent Closure of Maasvlakte POSM Unit Amid Market Pressures [Photo credit : Alex Lokker] |
Aaron Ledet, executive vice president of I&D and Supply Chain at LYB, emphasized the strategic shift towards core assets that offer stronger returns and align with the company’s technology and sustainability goals. Meanwhile, Hermann-Josef Dörholt, head of Performance Materials at Covestro, reaffirmed the company’s commitment to the European market despite the closure, ensuring continued supply of polyether polyols.
The Maasvlakte site has been operational since 2003 and will undergo a phased shutdown and demolition process through 2026. LYB continues to assess its European assets, with potential divestments under review for its Olefins & Polyolefins (O&P) and Intermediates & Derivatives (I&D) business units.
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