LYB Solvent Recycling to Close Merseburg Site, Threatening 100 Jobs

LYB Solvent Recycling has announced the planned closure of its Merseburg facility, putting approximately 100 jobs at risk. Following a thorough reassessment of market conditions and company strategy, LYB determined that the Merseburg site is no longer economically viable. Despite attempts to find a sustainable operational model, no viable solution was identified. The closure is expected by summer 2026, with employees already notified about the potential shutdown although formal layoffs have not yet been declared. The company also announced it will forgo Christmas bonuses this year for the first time in 15 years, adding to employee concerns.

The Merseburg site specialized in solvent-based plastic recycling technologies that convert difficult plastic waste into high-quality materials, primarily used for flexible packaging. Notably, an important patent developed at Merseburg will now be further advanced in Frankfurt am Main. The city of Merseburg and local officials, including Mayor Sebastian Müller-Bahr, have expressed serious concerns and are engaging with Saxony-Anhalt’s Minister of Economics to discuss the closure’s impact.

This development contrasts sharply with the optimism expressed just months earlier in August when parent company Lyondell-Basell promised expansion at the site following its acquisition of the insolvent APK AG, which included LYB Solvent Recycling. The closure highlights the challenges faced by industry players amid shifting market realities and underscores the precariousness of jobs tied to specialized chemical recycling operations.