LyondellBasell plans to add almost 900 million pounds of annual production capacity for propylene feedstock near Houston.
In a news release, officials with LyondellBasell in Houston said the expansion at the firm's Channelview site will begin construction in the third quarter of 2025, with a projected startup in late 2028. They added the project will employ 750 at peak construction and will add 25 permanent jobs.
Kim Foley, global olefins & polyolefins and refining executive vice president, said the expansion "strengthens [LYB's] ability to meet increasing customer demand and improve our self-sufficiency as we grow and upgrade a core business line."
She added the project "reduces [LYB's] exposure to market volatility, which positions [the firm] to provide consistent returns for our shareholders."
The new metathesis unit will convert ethylene into propylene for use in making polypropylene resins and propylene oxide. End uses for those materials include food packaging, medical devices, automotive parts, aircraft deicing fluid, building insulation and cushions for home furnishings.
The additional capacity will improve North American supplies of propylene, which is a main price driver for PP resins. Even slight changes in availability of polymer grade propylene (PGP) can lead to price movements in PP markets.
LYB is a major supplier of polyethylene and PP resins, as well as North America's largest compounder. The firm posted sales of $40.3 billion in 2024.