Propylene oxide styrene and monomer production site to close in the Netherlands
The announcement comes amid a strong increase of imports from Asia and high costs of European production.
Chemicals manufacturer LyondellBasell (LYB) and polymer manufacturer Covestro have jointly decided to permanently close the propylene oxide styrene and monomer (POSM) production unit (PO11) at the Maasvlakte site in the Netherlands.
Hermann-Josef Dörholt, head of the Performance Materials Business Entity at Covestro. says, 'Due to global overcapacities, persistently weak demand and high costs in Europe, we have jointly decided with LYB to close the PO11 plant.'
The news comes as rising costs in Europe were flagged by eight European countries calling for a Critical Chemicals Act to protect EU chemical production. They highlight energy costs and ‘fierce’ or even ‘unfair’ competition from non-EU countries.
