Published on 6 Sep 2023 on Zacks via Yahoo Finance
LyondellBasell (LYB) Starts Discourse on Production Unit Closure
LyondellBasell Industries N.V. LYB commenced discussions with local trade unions to manage potential redundancies in connection with the planned shutdown of one of its two polypropylene production units at its Brindisi location in Italy.LyondellBasell believes that closing this unit is the most sustainable response, both strategically and financially. Some of the company's employees may be affected by the planned closure. It is committed to discussing solutions with unions and social parties to effectively serve them. Customers of the company will continue to be serviced.This unit is the world's oldest of its kind, and it has become uncompetitive, LYB noted. The market environment for this Brindisi unit's polypropylene products has become increasingly difficult. The company intends to increase the position of its remaining assets in higher-value markets.Shares of LYB have gained 21.1% over the past year compared with the 10.4% growth of its industry.
Image Source: Zacks Investment Research