Oxea moves ahead on Texas plant capacity expansion

Oxea, German manufacturer of oxo chemicals, announced its Final Investment Decision (FID) for a major capacity expansion at its Bay City, Texas, US production site. 

The investment will expand Oxea’s core oxo technologies, increasing propionaldehyde capacity, fully enabling propanol and butanol capacities. It will also unlock feedstock availability for its carboxylic acids portfolio and position the site for future growth beyond targeted expansion capacities. Oxea described the Bay City site as one of the most feedstock-advantaged sites on the U.S. Gulf Coast.

“Achieving FID is both a strategic investment and a promise. It positions Oxea’s Bay City site as a platform for further expansion and firmly establishes Bay City as a cornerstone of Oxea’s global production network,” said Mr. Jorge Moshe Castro Roldan, Vice President of Global Procurement and Project Sponsor at Oxea.

With the FID now confirmed and the project fully funded, Oxea has entered the execution phase, encompassing detailed engineering, procurement, and construction.

To support the expansion, Oxea has signed a long-term supply agreement with France’s Air Liquide for synthesis gas (syngas), a critical feedstock for Oxea’s oxo chemical manufacturing processes. Under the agreement, Air Liquide will design, build, and operate a new, purpose-built on-site syngas unit at the Bay City facility, with full project completion expected by the end of 2028. The design of the new syngas unit will enable the recirculation of CO₂ back into the reactor to optimise syngas composition and production flexibility. By reusing CO₂ within the process, the facility will reduce overall carbon emissions and support a lower-carbon, more environmentally sustainable operation. Site preparation for the Air Liquide syngas unit is planned to begin in Q3 2026.

“We are not just expanding capacity; we are strengthening the foundation for OXEA’s long-term global leadership in oxo chemicals, and further establishing Bay City as a premier industrial park attracting future investment, strategic partnerships, and economic development for the region,” commented Mr. Michael McHenry, CEO of Oxea.