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Versalis Shuts Down Polyethylene Plant in Brindisi, Italy

Plastmatch Global Digest 2026-07-22 14:28:28

Eni’s chemical subsidiary Versalis confirmed to S&P Global Commodity Insights’ Platts by email on July 21 that the company has shut down its polyethylene (PE) production unit in Brindisi, Italy, and placed the unit in a mothballed state.

In its email, the company stated that the shutdown of the PE unit was carried out in accordance with the framework agreement signed with Italy’s Ministry of Enterprises on March 10, 2025. According to S&P Global data, the unit has rated capacities of 249,000 tonnes per year of linear low-density polyethylene and 279,000 tonnes per year of high-density polyethylene. Local industry reports indicate that the framework agreement included implementation conditions related to a stationary energy storage battery project, which was also one of the key factors driving the shutdown of the unit.

The naphtha cracking unit had previously been permanently shut down.

As part of Eni Group’s chemical business transformation and low-carbon development plan, Versalis permanently shut down in 2025 two naphtha cracking units in Brindisi and Priolo, with a combined capacity of 490,000 tonnes per year.

The shutdown of the Brindisi PE unit comes amid an industry downturn and may help improve the European market to some extent. The European market is currently under continued pressure from weak demand, ample supply, and the impact of imported products.

Earlier this month, Eni Energy Storage Company, a joint venture between Eni Industrial Development Company and FIB under the Seri Industrial Group, launched the construction of a new lithium iron phosphate battery production facility in Brindisi. Eni announced on July 6 that the new factory will help promote renewable energy and enhance grid stability. The new project is located within the Versalis Brindisi industrial park, where the site was previously used for polymer storage and other now-decommissioned industrial facilities.

In June, Houston-based LyondellBasell confirmed plans to permanently shut down its only remaining polypropylene (PP) unit in Brindisi by the end of this year. The company stated that, after assessing the surrounding supporting infrastructure and the supply of key raw materials, uncertainty in feedstock availability has continued, while production and logistics costs have remained persistently high, leading to this decision. LyondellBasell’s other PP unit in Brindisi was shut down at the end of 2023.

Previously, Versalis’s Brindisi steam cracking unit had been supplying propylene feedstock to two nearby polypropylene plants operated by LyondellBasell.

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