LyondellBasell starts strategically reviewing assets in Europe
by ChemOrbis Editorial Team - content@chemorbis.com
According to a press release on the company’s website, LyondellBasell launched a strategic review of the European assets of its Olefins & Polyolefins and Intermediates & Derivatives business units.
The review will assess the assets in line with the company’s strategy to enhance its core business, develop a profitable circular and low-carbon solutions business, and improve overall performance and culture.
Given the persistently challenging market conditions and cost pressures in Europe along with the regulations, the company appears to have taken this strategic review decision. This has closely followed the announcement of plant closures from Sabic and ExxonMobil back in April.
Late last year, LyondellBasell decided to permanently close its 260,000 tons/year PP plant in Brindisi, Italy, while they agreed to be a partner in Saudi Arabia’s NATPET in January. According to industry sources, the acquisition is expected to be completed in the coming months.
The company’s investments in the commercial-scale MoReTec plant, which converts plastic waste into liquid raw materials, and the establishment of a circularity hub in Cologne, Germany, will also continue as planned.
According to data from the company’s annual report for 2023, LyondellBasell is the fifth largest producer of ethylene with a capacity of 1.9 million tons/year in Europe. The company is the largest producer of PE and PP in Europe with 2.1 million tons/year and 2.7 million tons/year of capacity, respectively.
The company has not provided a timetable for the end of this strategic review following the official announcement.
The review will assess the assets in line with the company’s strategy to enhance its core business, develop a profitable circular and low-carbon solutions business, and improve overall performance and culture.
Given the persistently challenging market conditions and cost pressures in Europe along with the regulations, the company appears to have taken this strategic review decision. This has closely followed the announcement of plant closures from Sabic and ExxonMobil back in April.
Late last year, LyondellBasell decided to permanently close its 260,000 tons/year PP plant in Brindisi, Italy, while they agreed to be a partner in Saudi Arabia’s NATPET in January. According to industry sources, the acquisition is expected to be completed in the coming months.
The company’s investments in the commercial-scale MoReTec plant, which converts plastic waste into liquid raw materials, and the establishment of a circularity hub in Cologne, Germany, will also continue as planned.
According to data from the company’s annual report for 2023, LyondellBasell is the fifth largest producer of ethylene with a capacity of 1.9 million tons/year in Europe. The company is the largest producer of PE and PP in Europe with 2.1 million tons/year and 2.7 million tons/year of capacity, respectively.
The company has not provided a timetable for the end of this strategic review following the official announcement.
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