LyondellBasell Boosts Propylene Capacity: A Strategic Move for Growth and Stability

LyondellBasell (NYSE: LYB) has announced a significant investment to expand its propylene production capacity at the Channelview Complex near Houston, Texas. The project, expected to begin construction in the third quarter of 2025 and be operational by late 2028, will add approximately 400 thousand metric tons of annual propylene production capacity. This expansion aims to strengthen the company's ability to meet increasing customer demand, improve self-sufficiency, and reduce exposure to market volatility, ultimately positioning LYB to provide consistent returns for shareholders.

The new metathesis unit will convert ethylene into propylene, which will be used in the production of polypropylene and propylene oxide. These materials are essential building blocks for various everyday products, such as food packaging, medical devices, automotive components, and building insulation. The expansion will create 750 jobs during peak construction and add 25 permanent positions post-completion.



Kim Foley, LYB executive vice president, Global Olefins & Polyolefins and Refining, stated, "This capacity expansion strengthens our ability to meet increasing customer demand and improve our self-sufficiency as we grow and upgrade a core business line for LyondellBasell. Additionally, it reduces our exposure to market volatility, which positions LYB to provide consistent returns for our shareholders."

The expansion project aligns with LyondellBasell's strategic goals and market demands by addressing increasing customer demand, improving self-sufficiency, reducing exposure to market volatility, and capitalizing on market trends for essential materials. The timing of the project, with a projected startup in late 2028, allows the company to better serve its customers and maintain market share in the growing demand for these materials.



In conclusion, LyondellBasell's investment in expanding propylene production capacity at the Channelview Complex is a strategic move that will enhance the company's ability to meet increasing customer demand, improve self-sufficiency, and reduce market volatility exposure. This expansion will contribute to the local economy during construction and create permanent jobs post-completion. The project aligns with the company's strategic goals and market demands, positioning LyondellBasell to provide consistent returns for shareholders in the long term.