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The Berre petrochemical plant is one of the sites involved in exclusive sales negotiations between LyondellBasell and Aequita | PHOTO: Frédéric SPEICH, La Provence

LyondellBasell’s (LYB) agreement to divest four major European production sites to AEQUITA marks a pivotal moment not only for the company but for the continent’s entire petrochemical sector. The transaction, encompassing plants in France (Berre), Germany (Münchsmünster), the UK (Carrington), and Spain (Tarragona), is emblematic of a broader industry shift as producers grapple with persistent overcapacity, high costs, and the need for structural transformation.



LyondellBasell Transaction Footprint | Jun 5, 2025 | LyondellBasell Investors Presentation

Strategic Rationale: From Rationalization to Refocus

LYB’s decision to sell these assets is rooted in a deliberate strategy to sharpen its operational focus and enhance profitability. The divested sites, which together account for roughly 1.4 million tonnes per year of polyolefins and olefins output, have delivered only modest returns while consuming significant capital—averaging €110 million in annual capex from 2020 to 2024. By transferring these facilities to AEQUITA, LYB expects to reduce its fixed costs by approximately €400 million per year and reallocate capital toward its most competitive and sustainable European operations.

Notably, this move is not an isolated event. LYB’s review initially spanned six sites, including Brindisi (Italy)—where one polypropylene plant has already been shuttered—and Maasvlakte (Netherlands), a joint venture (with Covestro) asset not included in the AEQUITA deal. This highlights the depth of LYB’s strategic review and underscores the scale of rationalization underway across the region.

Industry Context: A Wave of Closures and Consolidation

LYB’s asset sale is part of a much larger trend. European petrochemical producers are facing unprecedented headwinds: high energy costs, aging infrastructure, tightening environmental regulations, and lackluster demand. Other industry leaders, such as ExxonMobil, Sabic, and Indorama Ventures, have also closed or downsized European operations in the past year. Ultimately, up to half of the continent’s ethylene crackers could ultimately face closure, as the economics of small, old plants become increasingly untenable.

This rationalization wave is not simply a response to cyclical weakness but a recognition of structural change. Freight disruptions and temporary supply shocks have only delayed the inevitable need for consolidation and transformation.


LyondellBasell' Assets for Sale | Jun 5, 2025 | LyondellBasell Investors Presentation

Deal Structure and Financial Terms

The transaction with AEQUITA is structured to enable a smooth transition:

• LYB will contribute €265 million (of a €275 million carve-out support fund) to facilitate the separation, with AEQUITA providing €10 million.
• LYB stands to receive up to €100 million in earnouts over three years.
• AEQUITA will assume approximately €150 million in pension and employee liabilities, as well as all environmental obligations.
• The deal is expected to close in the first half of 2026, subject to regulatory and works council approvals.

Importantly, LYB’s exit from these sites will also spare it from the need to invest hundreds of millions in decarbonization upgrades, particularly at Berre and Münchsmünster, where meeting 2030 emissions targets would have required major capital outlays.

LYB’s European Commitment: Core Sites and Circular Ambitions

Despite the high-profile asset sale, LYB has made clear that Europe remains a core region. The company’s retained portfolio includes technologically advanced and economically advantaged sites in Ferrara, Frankfurt, Ludwigshafen, and Rotterdam, as well as integrated supply hubs in Cologne and specialty operations in APS. These facilities are positioned to support LYB’s ambitions in circular and low-carbon solutions, including advanced recycling (MoReTec) and the CirculenRecover product line.

LYB’s future European footprint will be more focused, with a higher share of capacity in cost-advantaged regions (U.S. and Middle East), rising from 61% to 68% post-transaction. The company is also stepping up investment in recycling and circular economy initiatives at its core sites, aiming to deliver 2 million tonnes per year of recycled and renewable polymers by 2030.

Market Implications and Competitive Dynamics

LYB’s withdrawal from these European assets will reshape the regional supply landscape, opening opportunities for Middle Eastern and Asian exporters to increase their market share. The move also contrasts with the strategies of some competitors, such as SABIC, which is expanding its footprint in Asia. For LYB, the divestment enables a sharper focus on direct customers, brand owners, and high-growth segments, while freeing up resources for innovation and portfolio upgrades.

Berre Petrochemical Cluster Process Flow Diagram | ppPLUS Interactive Visualization Tool

Outlook: More Closures Ahead

The European petrochemical sector is entering a “new normal” characterized by ongoing rationalization. With many crackers and polymer plants facing existential threats due to age, size, and economics, further closures are likely. LYB’s asset sale could be a bellwether for additional portfolio actions across the industry.

How ppPLUS Can Help

For investors and stakeholders evaluating LyondellBasell’s divested assets, Portfolio Planning PLUS (ppPLUS) offers tailored economic modelling capabilities to assess risks, opportunities, and transaction value. ppPLUS specializes in developing site-specific models that integrate:

Asset configurations: Detailed analysis of production units, technologies (e.g., Steam Crackers at Berre and Münchmünster, Novolen Gas-Phase PP at Tarragona, Hostalen ACP HDPE at Münchsmünster, Lupotech T LDPE and Spheripol Bulk-Slurry PP at Berre), and feedstock flexibility.
Capacity utilization: Scenario-based projections accounting for market demand, regulatory constraints, and operational synergies.
 Financial and operational metrics: Capex/opex forecasting, decarbonization cost avoidance, and liability assumptions (e.g., pensions, environmental obligations).

Using ppPLUS’s interactive platform, users can:

• Generate gross margin models for individual sites or combined portfolios.
• Simulate the impact of energy price volatility, carbon pricing, and feedstock availability.
• Benchmark asset performance against industry standards and regional competitors.

ppPLUS’s tools align with global best practices in economic modelling, including compliance with frameworks like the UK’s TAG M5.3 supplementary economic modelling guidelines for rigorous validation and scenario testing.

Explore ppPLUS’s asset-specific insights:

• Berre, France
• Münchsmünster, Germany
• Carrington, UK
• Tarragona, Spain

Contact ppPLUS to leverage its expertise in petrochemical asset valuation, strategic due diligence, and regulatory risk assessment for informed decision-making in this transformative transaction.

#portfolioplanningplus  #ppplus  #transactions  #divestment  #marginanalysis  #economicmodelling  #capacityutilization  #opex  #capex  #lyondellbasell  #sabic  #indorama  #ineos  #exxonmobil  #aequita #aramco 

Eastman’s Kingsport, Tenn. plant was initially estimated to cost $250 million over two years, but recent financial filings suggest the price tag has crept upward. | William Griffith/Shutterstock

Eastman Chemical Company has positioned itself as a leader in “molecular recycling,” focusing on advanced chemical processes to recycle hard-to-recycle polyester plastics. The company’s flagship technology, known as Polyester Renewal Technology (PRT), uses methanolysis to break down polyester waste into its original monomers, enabling the production of new, virgin-quality plastics from waste streams that cannot be recycled mechanically. This article reviews the status of Eastman’s key projects in the United States and France, the technology used, and the specific challenges—both technical and regulatory—facing these ambitious initiatives.

Existing Facilities and Technology

Eastman’s molecular recycling facility in Kingsport, Tennessee, has been operational since early 2024 and is claimed to be profitable as it is already generating revenue. This plant serves as the model for Eastman’s subsequent molecular recycling projects and showcases the company’s advanced PRT. At steady-state capacity, the Kingsport asset will recycle 110,000 metric tons of polyester waste annually and achieved sustained operating rates of ~70% capacity by mid-2024. While Eastman resolved a mechanical issue in July 2024 and continues ramping production toward its full capacity target, current output remains below nameplate levels. Kingsport facility is recognized as a benchmark for the company’s future sites.

At the core of this technology is the chemical recycling of polyester waste—primarily polyethylene terephthalate (PET), commonly found in packaging, textiles, and various consumer products. The facility uses methanol under controlled heat and pressure to break down PET into its original monomers: dimethyl terephthalate (DMT) and ethylene glycol (EG). Once separated and purified, these monomers are used as raw materials to manufacture new, virgin-quality polyester products. The plastics produced through this process are indistinguishable in quality and performance from those made with fossil-based feedstocks, supporting the development of a true circular economy for polyester materials.



Eastman Polymerisation Renewal Technology (PRT) description by Portfolio Planning PLUS

One of the key advantages of Eastman’s methanolysis-based recycling is its ability to process types of plastics that are unsuitable for traditional mechanical recycling. This includes colored, opaque, multilayer, and contaminated PET waste—materials that typically end up in landfills or are incinerated. By converting these challenging waste streams back into high-value inputs for new products, Eastman’s technology significantly reduces plastic waste and the environmental impact associated with virgin plastic production. According to Eastman, the Kingsport facility’s process results in greenhouse gas reductions of 20–50% compared to conventional production methods using fossil resources.

Projects in Development

Longview, Texas (USA)

Eastman is planning a second molecular recycling facility in Longview, Texas, which is expected to become operational in 2028. The facility will use the same PRT (methanolysis) as the Kingsport plant, with added innovations such as thermal batteries and on-site solar power to further decarbonize the PET production process. Designed to process approximately 110,000 metric tons of hard-to-recycle plastic waste annually, the Longview project is part of Eastman’s broader $2.25 billion investment in new recycling infrastructure. The facility is anticipated to create around 1,000 temporary construction and trade jobs, as well as 200 permanent full-time positions once complete.

A significant development affecting the Longview project occurred on 30 May 2025, when the Trump administration canceled a $375 million federal grant that had been allocated to support the facility’s construction. This grant, which was part of a larger Department of Energy initiative, was initially approved under the Biden administration in March 2024 but was revoked as part of a broader rollback of renewable energy and decarbonization funding. The estimated total cost of the Longview project is more than $1.2 billion. Despite this setback, Eastman has publicly maintained its commitment to the project as a key component of its global circularity strategy, though the loss of federal funding introduces new financial and logistical challenges for its timely completion.

Port-Jérôme-sur-Seine, Normandy (France)

A third molecular recycling facility using is planned to be built in the Port-Jérôme industrial zone in Normandy, France, which Eastman announced on March 15, 2024. The facility is designed to be developed in two phases: Phase I aims to recycle more than 110,000 metric tonnes of hard-to-recycle polyester waste annually, while Phase II is planned to expand capacity to over 200,000 metric tonnes per year. The plant will also use PRT, which breaks down polyester plastics into their monomers for reuse.

For Phase I alone, Eastman has planned an investment exceeding $1 billion. The project is expected to create 350 direct jobs and 1,500 indirect jobs, including 500 positions during the construction phase. To secure a steady supply of feedstock, Eastman has signed agreements with partners such as Interzero Plastics Recycling to provide PET household packaging waste for the facility. Additionally, several global brands—including LVMH Beauty, Estée Lauder Companies, Clarins, Procter & Gamble, L’Oréal, and Danone—have signed letters of intent for multiyear contracts to supply the plant.

This project is currently on hold as Eastman closely tracks the evolving regulatory landscape within the European Union regarding plastic waste and packaging. However, more crucially, according to a private source, the project’s future is fundamentally threatened by the absence of any plan to supply electrical power to the plant before 2028 at the earliest—a factor that places its timely realization in serious jeopardy, regardless of regulatory developments.

Outlook: Expansion at Risk Due to Regulatory, Funding, and Power Supply Issues

Eastman’s molecular recycling initiatives face significant uncertainty, as its two flagship development projects—the Longview, Texas facility and the Normandy, France plant—are both under threat from major external challenges. The Texas project is at risk due to the loss of critical federal funding, while the Normandy facility faces not only ongoing regulatory uncertainty in the EU but, more crucially, a lack of any planned electrical power supply to the site before at least 2028. If these obstacles are not resolved, both projects could ultimately be cancelled. Eastman’s ability to realize its circular economy ambitions now depends on overcoming these substantial financial, regulatory, and infrastructure barriers—an outcome that remains highly uncertain in the current environment.

#eastman  #circularity  #recycling  #molecularrecycling  #chemicalrecycling  #plasticwaste  #mixedplasticwaste  #polyesterrecycling  #depolymerization  #methanolysis  #longview  #kingsport  #portjerome  #Sustainability

Eastman polyester recycling technology has been added.

#eastman  #polyester  #recycling  #molecularrecycling  #chemicalrecycling  #depolymerization  #pet  #methanolysis 

Sabic European Head Office in Sittard, The Netherlands

Sabic, the Saudi chemicals giant majority-owned by Aramco, is preparing to exit its European petrochemicals business—a move that underscores the mounting pressures facing the region’s manufacturing sector. The company’s plants and operations, spanning Germany, Spain, and the UK, are now up for sale, with investment banks Lazard and Goldman Sachs overseeing the process. These assets, which generate billions in annual sales, are among the largest of their kind in Europe.

Why Is Sabic Leaving Europe?

Sabic’s planned departure is not simply a business reshuffle but a reflection of deep-rooted challenges in Europe’s chemicals industry. Over the past several years, European producers have been squeezed by a combination of macroeconomic headwinds, persistent overcapacity, and intensifying global competition. The sector has faced years of oversupply and falling prices, with demand for petrochemicals closely tied to sluggish GDP growth. Sabic itself recently cut its 2025 GDP forecast, citing weaker prospects for the industry as a whole.

The economic backdrop is further complicated by Europe’s high energy prices and strict environmental regulations. European producers pay significantly more for natural gas than their US counterparts, and the cost of emitting carbon dioxide continues to rise under the EU’s ambitious climate policies. While American and Middle Eastern producers benefit from cheaper feedstocks and less stringent emissions rules, European plants—many of them older and reliant on naphtha—struggle to compete. The result is a cost gap of up to $300 per tonne for key products like ethylene and propylene, putting relentless pressure on margins.

Industry Consolidation and Rationalization

These structural disadvantages have triggered a wave of rationalization across the continent. Sabic is not alone: ExxonMobil, Dow, and other multinationals are also closing or idling European assets, as high costs and weak demand make it difficult to justify continued investment in aging facilities. In 2024 alone, nearly 1 million tonnes of ethylene capacity is being permanently phased out, with more closures likely as the industry adapts to the “new normal” of lower profitability and higher sustainability standards.

The European Union’s push for emissions reductions-targeting at least a 55% cut from 1990 levels by 2030-adds another layer of complexity. Modernizing old plants to meet these goals is often more expensive than closing them, and the introduction of mechanisms like the carbon border adjustment tax could further deter outside investment.

Who Might Buy Sabic’s Assets?

With Sabic’s portfolio now on the market, potential buyers are weighing both risks and opportunities. European rivals such as BASF and INEOS may see value in expanding their networks, while Middle Eastern energy firms could be interested but wary of Europe’s carbon costs. Private equity investors, particularly those focused on green technology, are also watching closely, drawn by the chance to modernize facilities and tap into EU subsidies for hydrogen and recycling projects.

Global Shifts and the Road Ahead

Sabic’s strategic pivot comes as the global chemicals market is being reshaped by geopolitics and shifting trade flows. Ongoing trade tensions between the US and China, along with the prospect of increased supply from Iran, are pushing more business toward the Middle East and Asia, further eroding Europe’s traditional advantages. Meanwhile, Sabic and Aramco are doubling down on investments in high-growth Asian markets, including a $6.4 billion petrochemical complex in China, betting on robust demand for plastics and chemicals in the region.

#sabic #aramco  #ineos #basf  #dow  #exxonmobil  #recycling  #carbontax

PLA Synthetic Pathways

By Portfolio Planning PLUS, May 6, 2025

The global market for biodegradable bioplastics—particularly polylactic acid (PLA) and polyhydroxyalkanoate (PHA)—is at a crossroads following the high-profile Chapter 11 bankruptcy filing of Danimer Scientific, one of the sector’s most visible pioneers. Danimer, headquartered in Bainbridge, Georgia, sought court protection on March 18, 2025, after months of financial distress, underutilized plants, and delayed customer commitments, casting a shadow over the fast-growing but still volatile biopolymer industry

Danimer’s collapse underscores the challenges facing the sector, even as the global market for biopolymers continues to expand. The company’s flagship PHA product, Nodax®, and its PLA-based resins were once hailed as game-changers for sustainable packaging, food service items, and consumer disposables. However, despite strong regulatory and consumer tailwinds, Danimer struggled to translate innovation into profitability. The firm’s revenues fell sharply in 2024, with major customers such as Starbucks scaling back orders, and its manufacturing facilities operating at only 15% of capacity.

A liquidity crisis, mounting debt, and the withdrawal of a key strategic investor ultimately forced Danimer into bankruptcy, where it now seeks to sell its assets and technology portfolio through a court-supervised process.

Danimer’s bankruptcy highlights the persistent hurdles for biopolymer makers: high production costs, slow adoption by large brands, and the capital intensity of scaling up manufacturing. While PLA enjoys relatively mature supply chains and broad applications, PHA’s market is still fragmented, with no dominant player and ongoing competition from established chemical giants and emerging startups alike. The sector’s growth is also tempered by infrastructure gaps for composting and recycling, as well as the need for further cost reductions to compete with conventional plastics.

Industry analysts say Danimer’s asset sale could trigger consolidation in the biopolymer sector, with larger chemical companies or international players potentially acquiring its technology and facilities. As the dust settles, Danimer’s journey serves as both a cautionary tale and a testament to the promise of biopolymers. The sector’s next chapter will likely be shaped by those able to pair technological innovation with commercial scale and financial discipline.

#biopolymer  #recycling  #composting  #biodegradability  #pla  #pha  #polylacticacid  #polyhydroxyalkanoate  #danimer 

Vienna, Austria / Abu Dhabi, UAE — March 4, 2025

In a landmark move reshaping the global petrochemicals industry, Austria’s OMV and Abu Dhabi National Oil Company (ADNOC) have unveiled plans to merge their chemical subsidiaries, Borouge and Borealis, into a new entity named Borouge Group International. This new company will then acquire Nova Chemicals, a leading North American polyethylene producer, for $13.4 billion, including debt. The combined enterprise, valued at over $60 billion, is poised to become one of the world’s largest polyolefins producers, with a production capacity of approximately 13.6 million tons per year. The transaction, expected to close in the first quarter of 2026 pending regulatory approvals, underscores both companies’ ambitions to expand their global chemicals footprint.

The deal involves two key steps.
First, OMV, which owns 75% of Borealis, and ADNOC, holding 54% of Borouge, will consolidate their shareholdings into Borouge Group International. Each company will own approximately 46.94% of the new entity, with the remaining 6.12% offered as free-float shares to Borouge’s existing shareholders. To balance the ownership, OMV will contribute €1.6 billion (about $1.7 billion) in cash, subject to adjustments based on dividends paid before the deal closes.
Second, Borouge Group International will acquire Nova Chemicals from Mubadala Investment Company, an Abu Dhabi sovereign wealth fund, for an enterprise value of $13.4 billion. The equity value of the deal is reported at $9.377 billion, with the remainder comprising assumed debt. Nova Chemicals, based in Canada, operates four production sites in the Sarnia area, boasting a capacity of 2.6 million tons of polyethylene and 4.2 million tons of ethylene annually. The resulting company will combine Borouge’s dominance in the Middle East and Asia, Borealis’ leadership in Europe, and Nova Chemicals’ strong foothold in North America, creating a truly global player in the polyolefins market.

The formation of Borouge Group International and its acquisition of Nova Chemicals promise to reshape the industry. The merger unites Borouge’s access to competitive feedstock from ADNOC, Borealis’ European market expertise, and Nova Chemicals’ North American operations, bolstered by shale gas-based resources. This geographical diversity strengthens the company’s ability to serve customers worldwide. With an estimated $500 million in annual cost synergies, the new entity will optimize production, share cutting-edge technologies, and leverage combined market access. The company aims to rank as the fourth-largest polyolefins producer globally, enhancing its competitiveness. Sustainability is also a key focus, with all three companies—Borouge, Borealis, and Nova Chemicals—bringing expertise in recycling technologies and sustainable products. Borouge Group International is positioned to lead in the circular economy, targeting net-zero Scope 1 and 2 emissions by 2050.

Borouge Group International will be headquartered in Vienna, Austria, with a regional base in Abu Dhabi, UAE, and additional hubs in Calgary, Pittsburgh, and Singapore. The company will be listed on the Abu Dhabi Securities Exchange (ADX), with potential plans for a secondary listing in Vienna. Existing Borouge shareholders will exchange their shares for stakes in the new entity, with promises of dividend growth. The acquisition of Nova Chemicals will be funded through debt, which the company plans to refinance in the capital markets post-closing, reflecting confidence in its long-term financial stability backed by ADNOC and OMV.

#abudhabi  #omv  #novachemicals  #borouge  #borealis  #merger  #ethylene  #polyethylene  #recycling  #sustainability  #circulareconomy #netzero #shalegas  #mubadala 

Beatriz Santos | 22/01/2025 | Sustainable Plastics

The Packaging and Packaging Waste Regulation (PPWR) saw publication in the Official Journal of the European Union on Jan. 22, 2025.

The legislation will officially come into force on Feb. 11, 2025. EU regulations become binding upon publication on the Official Journal. All member states are required to comply with the regulation.

The PPWR will apply from August 12, 2026, 18 months after the regulation comes into force.

The European Parliament approved the final PPWR text in November 2024. The document is available in all EU languages.

The EU Parliament had approved a preliminary version of the legislation on April 24, 2024, with 476 votes in favour, 129 against, and 24 abstentions. That version of the text only included a version in English and hadn’t undergone the required legal-linguistic review.

The PPWR includes packaging reduction targets (5% by 2030, 10% by 2035 and 15% by 2040) and require EU countries to reduce, in particular, the amount of plastic packaging waste.

Under the new rules, all packaging, except for lightweight wood, cork, textile, rubber, ceramic, porcelain and wax, will have to be recyclable by fulfilling strict criteria. It introduces, as of 2030, a recyclability performance grade scale from A to C stating the extent to which packaging is considered recyclable, being 95% grade A, 80% grade B, and 70% grade C. 

The legislation includes provisions on recycling targets of 50% for plastic packaging by 2025 and 55% by 2030 and foresees recycled content targets for all types of plastic packaging, with the most demanding ones set for 2040 – including 65% recycled content for SUP beverage bottles, 50% for PET contact-sensitive packaging, and 65% for other packaging.

By 2029, 90% of single use plastic and metal beverage containers up to three litres will have to be collected separately, via deposit-return systems or other solutions that ensure the collection target is met.

Throughout the two long years after the first draft PPWR was introduced, the text has generated a lot of controversy. Some industry groups claim the legislation lacks ‘material neutrality’ by singling-out plastics, whilst others argue that secondary legislation will be required to make it work.


#recycling  #plasticrecycling  #plasticwaste  #plasticpackaging #sustainability 

Viridor has assumed full ownership of Quantafuel as the Oslo Stock Exchange delisted Quantafuel AS’ shares from Euronext Growth on 7th February.

Viridor, 8th Feb 2024.

#pyrolysis  #plasticwaste  #recycling  #chemicalrecycling 

The description of the Plastic Pyrolysis Process has been significantly augmented with a lot of practical information details.
#chemicalrecycling  #advancedrecycling  #circularity  #circulareconomy  #plasticwaste  #recycling