Key facts
- LyondellBasell intends to close its remaining polypropylene production at Brindisi, Italy, by the end of the year.
- The company cited a challenging macroeconomic environment, feedstock availability issues, and high operating costs.
- The Brindisi unit has a capacity of 260,000 t/yr and produces commodity PP homopolymer grades.
- A previous PP unit at the site was closed in 2024, and the site lacks upstream propylene production.
- Union sources suggest the closure is dependent on finding alternative solutions for the unit.
- LyondellBasell is reportedly selling the unit at a symbolic price.
LyondellBasell has announced its intention to shut down the remaining polypropylene (PP) production at its Brindisi, Italy facility by the end of the year. The company cited a combination of factors, including a challenging macroeconomic environment, persistent uncertainty regarding feedstock availability, and structurally higher operating and logistics costs, which have diminished the site's competitiveness.
The Brindisi PP unit has a nameplate capacity of 260,000 tonnes per year and was the first Spheripol unit, opened in 1982. It primarily produces commodity PP homopolymer grades used in packaging. This follows the closure of another PP unit at the same site by LyondellBasell in 2024.
The facility does not have its own upstream propylene production, relying on feedstock shipped by sea from other sites, notably Priolo in Italy. This reliance adds significant freight costs. Previously, the site received up to 220,000 t/yr of propylene from Eni's Versalis Brindisi cracker, which ceased operations in April of the previous year.
Union sources, including Carlo Perrucci, regional secretary of Uiltec, confirmed LyondellBasell's plan to close the unit at the end of December, attributing it to Eni's cracker closure and the general crisis. Perrucci also noted that LyondellBasell has put the PP unit up for sale at a symbolic price, but finding a buyer without the cracker would be difficult.
Eni has reportedly hired JPMorgan to find a buyer for its cracking plant, a development that could potentially ease LyondellBasell's search for a buyer for its PP unit. Despite the planned closure, LyondellBasell stated its commitment to the European market, intending to meet customer demand through its existing production network. The company recently completed the sale of several European assets to Velogy on May 1.