LyondellBasell agrees sale of select assets: Correction

Market: Petrochemicals
05/06/25

Changes financial figures in third paragraph to € from $

LyondellBasell said it is in exclusive negotiations with Munich-based industrial investment firm Aequita, regarding the sale of four olefin and polyolefin assets in Europe.

The deal includes its integrated cracker and polyolefin assets in Berre, France and Muenchmuenster, Germany, and stand-alone polypropylene (PP) sites in Carrington, UK and Tarragona, Spain. The deal is contingent on consultations with local works councils and is expected to close in the first half of 2026.

The sites were part of six put under strategic review in May 2024. LyondellBasell's Brindisi PP asset is not part of the deal and its future remains under review. Lyondell Basell confirmed the closure of its Maasvlakte propylene oxide-styrene monomer plant — the final site included in its initial review — in March.

The companies said that the package of assets "represent a scaled olefins and polyolefins platform strategically located in proximity to a longstanding customer base and with access and connectivity to key infrastructure".

LyondellBasell will contribute €265mn ($303mn) of €275mn total cash funding to support the separated business, but said that the sale would reduce its annual capex by around €110mn, reduce fixed costs by €400mn, and reduce the scope for decarbonisation investments. Decarbonisation of the Berre and Muenchmuenster sites by 42pc of 2020 levels by 2030, as previously committed to by LyondellBasell, would cost hundreds of millions of euros, or more on a faster timescale. Sale of the assets was preferential to closing them, which would incur environmental liabilities, now assumed by Aequita, LyondellBasell said.

Aequita is a private equity group focussed on companies in special situations and group carve outs. It has no other chemicals businesses, but other investments include industrial and automotive parts suppliers. Managing partner Christoph Himmel said "Each site brings a strong operational foundation and a highly experienced, committed employee base. We are confident in our ability to accelerate their development".

LyondellBasell indicated that it remains committed to Europe, and said the sale will concentrate its European footprint on "economically sustainable sites". Its remaining European assets are centred around two crackers and downstream units in Wesseling, Germany, PP assets in Italy and propylene oxide capacity in France and the Netherlands.

Tarragona and Carrington have capacities of 390,000 t/yr and 210,000 t/yr of PP, respectively. Muenchmuenster has capacity of 400,000 t/yr of ethylene, 265,000 t/yr of propylene, 67,000 t/yr of crude C4s and downstream production of 320,000 t/yr of high-density polyethylene (HDPE).

Berre has capacity to produce 465,000 t/yr of ethylene, 270,000 t/yr of propylene and 155,000 t/yr of crude C4s. The site at Berre also has downstream capacity for 320,000 t/yr of low-density polyethylene (LDPE), 350,000 t/yr of PP and 80,000 t/yr of butadiene extraction.

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12/06/25

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12/06/25

Borealis not reviewing assets in Europe: CEO

London, 12 June (Argus) — Austria-based petrochemicals producer Borealis is not conducting any asset reviews in Europe despite prolonged weakness in the region's polyethylene (PE) and polypropylene (PP) markets, chief executive Stefan Doboczky told Argus . "It's not that we would never look into something," Doboczky said. But "none of our major installations [in Europe] I would say are being a real problem, they are all contributing [to profitability]." Doboczky acknowledged that "Europe will never be the cost leader". But "there are strong differences between the economics of crackers and the polyolefin systems", he said. "If you look at our more coastal setups, we are much more flexible than certain steam crackers would be inland." Borealis' coastal steam crackers in Porvoo, Finland, and in Stenungsund, Sweden, have greater flexibility to run lighter feedstocks and optimise product yields. Their location also allows for easier feedstock procurement via vessel, Doboczky said. Borealis will continue to bring polyolefins into Europe from its sister plants in the Middle East and North America, which have advantageous positions on feedstock and production costs. Doboczky's comments follow Netherlands-based LyondellBasell's announcement last week that it plans to divest four European olefins and polyolefins plants to focus on "economically sustainable sites". The European petrochemicals sector has faced mounting pressure from weak demand and high costs, prompting several producers to review or close assets. Saudi Arabia's Sabic is also understood to be assessing its European footprint, although details remain limited. Borealis, by contrast, is pursuing a differentiation strategy focused on downstream expansion. Last week, it announced a €100mn ($114mn) investment to triple PP foam production capacity at its Burghausen site in Germany. The firm has 650,000 t/yr of PP production capacity at that site. "We are very much focused on investing in smaller units, in the €50mn-100mn space to gain a strong share in a particular niche," Doboczky said. This is in addition to around €2bn of overall capital expenditure already committed in Europe for new projects. "Borealis has no alternative to this [polyolefins] business," Doboczky said, adding that the company will continue to focus on specialty, high-end applications rather than volume-driven segments. It also has a notable presence in the downstream compounding sector, which uses part of its PE and PP resin output. Demand outlook Borealis expects 2025 demand to be broadly in line with 2023-24 levels, although it could vary by grade and segment. "We see too much volatility at the moment and I think we need to see how the world looks like after 9 July," Doboczky said, referring to the 90-day tariff pause on US imports. "The general sentiment that PP is even more difficult, I would subscribe to that." PP demand has been hit harder than PE, given its exposure to big-ticket consumer goods and the automotive segment, both of which have been affected by cost-of-living pressures. Construction demand is also under pressure due to economic headwinds and high financing costs. For the time being, Borealis continues to see offtake from the automotive segment within its expected range, owing to a larger share of electric vehicle production, which uses a higher proportion of PP to offset battery weight. The company is also targeting growth in rigid and flexible packaging through increased innovation. Project updates Earlier this year, OMV and Adnoc agreed to merge Borealis and Borouge into a new entity, Borouge Group International, which will be headquartered in Vienna and listed on the Abu Dhabi Securities Exchange. The move coincided with the acquisition of Canada-based Nova Chemicals by the new entity. Borealis is constructing a 750,000 t/yr propane dehydrogenation (PDH) plant in Kallo, Belgium, which is scheduled to come online in the second quarter of 2026. The Borouge 4 project in Abu Dhabi is on track to start up ethylene and PE production in late 2025 or early 2026, Doboczky said. By Sam Hashmi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Ethane rejection concerns heighten on export block

06/06/25

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06/06/25

Ethane rejection concerns heighten on export block

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