Page 157 - CW E-Magazine (1-4-2025)

News from Abroad

UNVIABLE OPERATIONS
LyondellBasell and Covestro to shut down propylene

oxide/styrene monomer unit in the Netherlands

LyondellBasell (LYB) and Coves-
tro have jointly decided to permanently
close the propylene oxide/styrene
monomer (POSM) production unit
(PO11) at the Maasvlakte site in the
Netherlands.

The companies said the decision
was forced by the continued pressure
on Maasvlakte’s profitability due to
global overcapacities, a strong increase
of imports from Asia and high costs of
European production. “Unfortunately,
this situation is expected to continue,
so longer-term profitable production is
not anticipated,” they said.
tegic review of European assets of “While the decision to shut down
The Maasvlakte site, a joint venture its Olefins & Polyolefins (O&P) and the PO11-unit is difficult, we must
between LYB and Covestro, has been Intermediates & Derivatives (I&D) ensure all assets within our portfolio are
operational in the Rotterdam region business units. LYB has taken the a long-term strategic fit. We are prioritis-
since 2003. Between now and the end next step in evaluating the option to ing our core assets which play a key role
of 2026, LYB will carry out a process to seek alternative ownership for the in our technology differentiation and
safely shutdown and prepare the demo- O&P sites in the strategic assessment. circularity strategy or provide attractive
lition of the asset. At this time no decisions have been returns over the cost of capital,” said
made, and various outcomes remain Aaron Ledet, Executive Vice-President
In 2024, LYB announced a stra- possible. I&D and Supply Chain at LYB.
Tronox moves to idle its pigment plant in the Netherlands

Tronox Holdings, the US-based the optimisation of our remaining faci- Tronox estimates incurring restruc-
manufacturer of titanium dioxide lities and improves our overall manu- turing and other related charges of
(TiO ) pigment, is planning to idle facturing costs.” approximately $130-mn to $160-mn,
2
its 90-ktpa TiO plant in Botlek, the primarily over the next 18 months, in-
2
Netherlands. This follows a strategic The site is currently shut-down due cluding $55-mn to $65-mn of non-cash
review of its asset footprint. to an outage by the site’s chlorine sup- write-downs related to the idling of the
plier that began on March 6, 2025, but facility. Cost savings are estimated to
John Romano, the company CEO upon conclusion of consultation with exceed $30-mn annually from 2026
explained, “Our announcement is the the works council, is not expected to onwards.
result of an extensive review of our be brought back online. Tronox expects
asset footprint driven by the ongoing this action will not impact its ability to Tronox is one of the world’s lead-
global supply imbalance caused by serve customers, as the company will ing producers of high-quality titanium
Chinese competition as well as an in- leverage its diverse footprint to provide products, including TiO pigment,
2
creasingly challenged operating envi- uninterrupted supply. The operating specialty-grade TiO products and
2
ronment over the last two and a half site currently employs approximately high-purity titanium chemicals, and
years. Idling our Botlek facility enables 240 impacted permanent staff. zircon.

Chemical Weekly April 1, 2025 157

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