Hundreds of Layoffs Expected as LyondellBasell Announces Houston Plant Closure

LyondellBasell has officially announced the planned shutdown of its Houston refinery, set to begin in the final days of January 2025 and continue through February. Operations at the 700-acre facility will gradually wind down, with production expected to cease completely by the end of March.

The Houston refinery, which produces nearly 264,000 barrels of oil per day, plays a significant role in the region’s economy and employs hundreds of workers. However, the closure is anticipated to lead to approximately 400 job cuts. In a statement to KHOU-11, the company emphasized its commitment to safety, saying, “Our focus is on safely ceasing refinery operations to protect the community, environment, and our workers.”

LyondellBasell first revealed plans to close the refinery in April 2022, citing that exiting the refining business by the end of 2023 would be the “best strategic and financial path forward.” While the shutdown was delayed, the company is now on track to complete the closure by the end of the first quarter of 2025.

While the company has framed the closure as part of its broader decarbonization efforts, it will have a significant impact on both the workforce and the local community. In a past statement, interim CEO Ken Lane acknowledged the challenges, saying, “These decisions are never easy, and we understand this has a very real impact on our refinery employees… we are committed to supporting our people through this transition.” While some employees may be retained to assist in site remediation, most are expected to seek employment elsewhere.

The refinery, which has changed ownership several times over the years, has a long history spanning more than a century.