LyondellBasell enters exclusive talks for Europe asset divestments

LyondellBasell has entered into exclusive talks with an industrial investor for the sale of four European production sites, slightly over a year after launching a review of its asset base in the region, said the company.

The company entered into the talks with AEQUITA, a Germany-based investment group specialising in turnarounds and carve-outs. Other assets acquired by the firm include a bake disc technology company purchased from Bosch, a cloud solutions business from Fujitsu, and a glass manufacturer from Saint-Gobain.

AEQUITA is in position to take control of four sites of the nine operated by LyondellBasell in Europe in the deal, spanning France, Germany, Spain and the UK.

That leaves LyondellBasell with its Knapsack and Wesseling, Germany, site – collectively its largest production centre in Europe – as well as Frankfurt, Germany; Moerdijk, Netherlands; Brindisi, Italy and Tarragona, Spain.

Collectively, the sites represent a “scaled” olefins and polyolefins platform with operations close to customer demand, LyondellBasell said, although the size of the crackers in the portfolio are smaller than many capacities that have come on-stream in the last few years.

“We are confident in our ability to accelerate their development under AEQUITA’s ownership approach,” said Christoph Himmel, Managing Partner at AEQUITA.

The current agreement entered into takes the form of a put option deed, which grants the owner the right but not the obligation to sell an asset at a specific price.

In this case, AEQUITA has agreed to purchase at the agreed-upon terms if LyondellBasell opts to exercise the option after concluding works council consultation processes.

The financial terms of a sale have not yet been disclosed, but the current timeline would see the deal close in the first half of 2026, LyondellBasell added.

The Europe review is part of a wider shift in footing towards three key pillars for the business.

Announced in 2023, this is based on prioritizing spending on businesses where the company “has leading positions in expanding and well-positioned markets”, growing circular solutions earnings to $1 billion/year by 2030, and shifting from cost controls to a broader idea of value creation.

The company’s strategy for its remaining European asset base will be based around sustainability and the circular economy, according to Lyondell CEO Peter Vanacker.

“Europe remains a core market for LyondellBasell and one we will continue to participate in following this transaction with more of a focus on value creation through establishing profitable leadership in circular and renewable solutions,” he said.

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China’s sulfuric acid exports over January-April rose 78.1% year over year to about 1.32 million metric tons, as per Chemweek.

Chile received the largest share, importing 483,117 metric tons, which accounted for 36.6% of total exports and marked an increase of 12.4% compared with the same period in 2024.

Indonesia emerged as China’s second-largest sulfuric acid importer, receiving 207,957 metric tons in the first four months, a significant increase of 440% year over year.

Saudi Arabia emerged as the third-largest importer with 207,957 metric tons, marking a sharp year-over-year surge of 746.4%. Morocco followed with 124,502 metric tons, reflecting a 321.4% year-over-year increase. In contrast, India experienced a sharp decline in imports, falling by 40.1% to 85,256 metric tons.

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Last week, ethylene prices dropped in Korea and Japan, while quoting steady in other parts of the Asian region, as per Polymerupdate.

An industry source in Asia, requesting to remain unidentified, informed a Polymerupdate team member, " Bids and offers for fixed-price cargoes are limited due to upstream uncertainty, highlighting a wider atmosphere of caution and risk management in commodity markets. Purchasers are maneuvering through a complicated interaction of geopolitical, economic, technological, and regulatory influences that result in a cautious market atmosphere. As participants respond to these uncertainties, market dynamics change, resulting in reduced long-term commitments and a greater emphasis on short-term flexibility.

The source added, ?Lower prices were reported in the Chinese market. The drop in prices in the domestic Chinese markets, linked to a surplus of supply and a pessimistic outlook for downstream demand, reflects the challenges of the commodity trading landscape. Participants are experiencing pressures from both the demand and supply sides, resulting in price changes that mirror current market conditions. Purchasers in this industry are closely observing these trends and adjusting their strategies to changing circumstances, as both the supply scenario and downstream demand may significantly affect market performance in the future.?

On Friday, FOB Korea ethylene prices were assessed at the USD 730-740/mt levels while FOB Japan ethylene prices were assessed at the USD 725-735/mt levels, both down USD (-5/mt) from the previous week

Meanwhile, CFR South East Asia ethylene prices were assessed flat at the USD 845-855/mt levels and CFR North East Asia ethylene prices were also assessed steady at the USD 775-785/mt levels.

In Southeast Asia, market players are vigilantly observing the possible launches of new crackers in Indonesia and Malaysia, since these changes could greatly impact the existing balanced market condition. Nonetheless, over the previous week, there have been limited firm conversations within the Southeast Asian markets. This reduced activity is due to persistent weakness in downstream polyethylene demand, which constrains total market participation. Therefore, although the start-up of new production facilities may alter market dynamics, existing demand limitations are maintaining discussions at a relatively low level.

In plant news, Chiba Chemicals is likely to shut down in mid-June 2025 for maintenance. Further details on the duration of the shutdown could not be ascertained. Located in Chiba, Japan, the cracker has an ethylene production capacity of 612,000 mt/year and propylene production capacity of 330,000 mt/year.

In other plant news, Zhejiang Petroleum & Chemical (ZPC) is likely to undertake a planned shutdown at its No.3 cracker in end June 2025 for a maintenance turnaround. Further details on the duration of the shutdown could not be ascertained. Located in Zhejiang, China, the No.3 cracker has an ethylene production capacity of 1.4 million mt/year.

In another plant news, Lotte Chemical Indonesia has shut down its cracker in early June 2025 owing to technical issues. Further details on the duration of the shutdown could not be ascertained. Located in Cilegon, Indonesia, the cracker has an ethylene production capacity of 1 million mt/year.

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PetroChina is set to close the last remaining crude unit at its biggest north China refinery at the end of this month, broadly in line with an earlier plan that marks the country's first full closure of a state-run plant, four industry sources said, as per Hydrocarbonprocessing.

PetroChina will switch off the 200,000-bpd No.1 crude unit at Dalian Petrochemical Corp. on June 30, and the secondary processing units in the following month, said the sources familiar with the shutdown plan.

It was reported last October that PetroChina intended to close the whole 410,000-bpd Dalian plant by mid-2025, part of the state oil major's long-mooted project to relocate and replace it with a smaller facility at a new site.

PetroChina will meanwhile start drawing down inventory of crude oil and other feedstocks this month and clean up all the products' inventory by the end of August, said two of the sources.

For the proposed new refinery complex to be built in Changxing island, about two hours' drive from downtown Dalian, PetroChina has yet to make a final investment decision, sources said.

PetroChina began the shutdown process at the Dalian plant in late 2023.

The refinery, which accounts for nearly 3% of China's national refining capacity, processes mainly Russian ESPO blend crude from Siberian fields.

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Surgutneftegas reported a net loss of 439.7 billion rubles in Q1 2025 compared to a profit of 268.5 billion rubles in the same period last year, according to the company's financial statements to Russian Accounting Standards (RAS), as per Interfax.

Quarterly revenue figures were not disclosed, along with most other line items in the financial results section.

The company also released its 2024 annual accounting statements. Net profit for the past year decreased 30.8% to 923.3 billion rubles.

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