Houston-based LyondellBasell confirmed this week that it had paused an upgrade project at the former PreZero rigid plastics recycling facility in Jurupa Valley, California.
The company put the project on hold “as part of its efforts to navigate the ongoing industry downcycle. We are currently optimizing operations at the existing site, sourcing feedstock primarily from California and producing mechanically-recycled grades of polymers,” the company told Plastics Recycling Update on April 22.
“We remain committed to maturing the Jurupa Valley site as it uniquely supports a key pillar of the company’s strategy: building a profitable Circular and Low Carbon Solutions business to support growing customer demand for circular and lower carbon materials.”
The upgrade was originally expected to be completed early this year.
In February, LyondellBasell announced it was paring back its sustainability goals, reflecting financial constraints and regulatory developments. For 2025, the company sold 206,000 metric tons of circular polymers, higher by only 3% on the year. The company does not publicly report overall polyolefins sales volumes including both virgin and circular resins, but in earnings calls executives indicated lower volumes during the first and fourth quarters of 2025, but seasonally stronger volumes in quarters two and three.
In February 2026, LyondellBasell lowered several 2030 sustainability goals, and this month reiterated in shareholder materials that it was delaying final investment decision (FID) for MoreTec-2, its second chemical recycling facility. The same month, Agilyx transferred ownership of a Houston plastics sorting center to partners LyondellBasell and ExxonMobil as part of a restructuring of the Cyclyx joint venture.
However, construction continues on the first commercial-scale MoreTec chemical recycling plant in Wesseling, Germany, with start-up expected in 2027. The 50,000 metric ton/year plant originally was planned to ramp up in 2025, then was moved to 2026, before the current projection was stated in fall 2025.
In its most recent sustainability report, the company labeled the MoreTec-2 status as “realigning to market realities,” while More-Tec-1 was in the “focused execution” section of its strategic priorities grid. Advocacy for supportive policy frameworks, as well as implementing low/no-cost energy efficiency projects, was listed in the “accelerating” column.
