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.
