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The chemical company had originally planned to exit the refining business and close its Houston location in 2023, but ultimately delayed the closure until the first quarter of 2025.
LyondellBasell will begin the closure of its Houston-area petroleum refinery at the end of January, the company confirmed.
The closure was first reported Wednesday by Reuters, which also reported that hundreds of employees would be laid off as a result. LyondellBasell is an international chemical company and its U.S. headquarters are located in Houston.
“LyondellBasell is on schedule to cease refining operations at the Houston Refinery at the end of the first quarter of 2025,” a LyondellBasell spokesperson said in a statement to Houston Public Media. “As previously mentioned, the gradually planned ramp-down begins toward the end of January and continues through February. Our focus is on safely ceasing refining operations to protect the community, environment and our workers.”
Reuters, citing an unnamed source, reported that up to 400 employees at the refinery would be laid off in the following months. A LyondellBasell representative did not comment on whether layoffs would be taking place or how many employees might be affected.
According to the company’s website, the Houston refinery was the first to open along the Houston Ship Channel when it began operations in 1918. The 700-acre site employs approximately 1,200 workers and contractors and mainly produces gasoline, diesel, jet fuel and lube oils. LyondellBasell claims that as of 2018, the refinery had an overall economic impact of $811 million.
The company had originally planned to exit the refining business and close the Houston location in 2023, but ultimately delayed the closure until the first quarter of 2025. According to a May 2023 news release from LyondellBasell, the company planned to close the refinery to transition into a “profitable circular and low carbon solutions business.”
News of the closure comes a little more than a week before the company is set to announce its fourth-quarter 2024 financial results on Jan. 31.
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