The plastics precursors production plant in Maasvlakte, port of Rotterdam in the Netherlands in facing closure, according to Dutch trade unions FNV and CNV.
The Maasvlakte site is a joint venture between LyondellBasell (LYB) and Covestro, each owning 50% of the plant. LYB operates the plant, which produces propylene oxide and styrene monomer at one the largest scales in the world.
Asked for comment, LYB said ‘no definitive decisions have been made’ at this stage.
“LyondellBasell continuously evaluates business conditions, our portfolio and a wide range of options for managing our assets to ensure they align with our company strategy. Our strategy includes growing and upgrading the core, building a profitable circular and low carbon solutions business, and stepping up our performance and culture. At this stage, no definitive decisions have been made. As a matter of policy, we do not comment on market rumours or speculation,” the company told Sustainable Plastics.
Nonetheless, reports in the Dutch press say that unions are negotiating with LYB to secure social plans for 70 of the over 120 workers which will reportedly be dismissed.
LYB allegedly announced the Maasvlakte closure on Jan. 8, 2025, adding that redundancies would be unavoidable. The FNV union said employees have since been feeling uncertain and insecure about their jobs. They are reportedly in negotiations with LYB under the union’s representation, seeking agreements on severance pay and guidance on new job opportunities during the reorganisation.
Last year, LYB announced it was conducting a strategic review of its European assets of its olefins, polyolefins, and chemical intermediates and derivatives business units.
Its CEO Peter Vanacker said in May 2024 that the review would encompass a potential retreat from Europe, with options including selling assets, investing in plant improvements, restructuring, and closing facilities.
The strategic review was triggered by high energy prices in Europe and ‘no feedstock advantages in general’, LYB’s Yvonne van der Laan, executive vice president, circular and low carbon solutions told Sustainable Plastics in an interview in October 2024.
Covestro, the other owner of the Maasvlakte site, has also announced cost cutting measures in the run up to its acquisition by ADNOC. The plans were announced as part of a new ‘global transformation programme’ called Strong. It aims to make the company more efficient and drive digitalisation forward amid a ‘rapidly changing market environment’. Covestro said doing so requires ‘making production, administrative units and other areas as efficient as possible and continuously expanding the innovation pipeline’.
The Maasvlakte site opened in 2003. Production is based on LYB’s propylene oxide and styrene monomer technology and the design follows a similar LYB plant in Channelview, Texas. The chemicals produced at the Maasvlakte plant form the building blocks for basic products like clothing, household products, and construction materials.