LyondellBasell said March 3 that plans to expand propylene production capacity at its Channelview Complex near Houston, just days after Reuters reported the company is expected to layoff hundreds of workers. 

The layoffs coincide with the company’s plan to close its oldest refinery in Houston, a move the company announced in April 2022. 

Groundbreaking and construction of the new plant are expected to begin in the third quarter of 2025, with a projected startup in late 2028. The unit will have an annual propylene production capacity of approximately 400,000 metric tons, employ 750 people during peak construction and add up to 25 permanent jobs.

The new metathesis unit will convert ethylene into propylene for use in the production of polypropylene and propylene oxide, which are building blocks for essential materials used in everyday life. End-use-related product lines include food packaging, medical devices, automotive components, aircraft deicing fluid, building insulation, cushions for home furnishings and telecommunications equipment.

“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,” said Kim Foley, LyondellBasell executive vice president, global olefins and polyolefins and refining in a press statement. “Additionally, it reduces our exposure to market volatility, which positions [LyondellBasell] to provide consistent returns for our shareholders.”