Petrochemical producer LyondellBasell said it plans to close its remaining polypropylene (PP) production at Brindisi, Italy, by the end of the year, but union sources say that is contingent on it not finding acceptable alternative solutions for the unit.
LyondellBasell told Argus that a "challenging macroeconomic environment, persistent uncertainty around feedstock availability, and structurally higher operating and logistics costs have diminished the site's competitiveness and made it increasingly difficult to sustain a viable long-term position".
The Brindisi PP unit has a nameplate capacity of 260,000 t/yr. It was the first Spheripol unit, opened in 1982, and mainly produces commodity PP homopolymer grades for packaging. Another PP unit at the site was closed by LyondellBasell in 2024.
The firm does not have upstream propylene production at Brindisi. Feedstock is shipped in by sea from other sites, mainly from Priolo in Italy, adding significant freight costs to its cost position. The site previously received up to 220,000 t/yr of propylene from Eni's Versalis Brindisi cracker before its closure in April last year.
"Given Eni's decision on the cracker and the overall crisis in general, the company [LyondellBasell] told us it would be closing the unit at the end of December," said Carlo Perrucci, regional secretary of trade union Uiltec.
Perrucci said LyondellBasell had put the PP unit up for sale at a symbolic price, but it would be difficult to find a buyer without the cracker.
"Eni told us it has hired JPMorgan to try and find a buyer for its cracking plant," Perrucci said. "If they succeed, it might make LyondellBasell's search for a buyer easier."
LyondellBasell said it remains committed to the European market and will continue to meet customer demand through its broader production network. The firm completed the sale of several European assets to a new regional petrochemical and polymer company, Velogy, on 1 May.
