The 100,000 ton per year unit is the smallest and least efficient of all HDPE units of LyondellBasell in Europe.

Closing the unit is a strategic step of the company to better organize its operations in the continent.

The company said that it has enough HDPE capacity to meet the demand from its larger scale facilities.

LyondellBasell Europe, Asia and International Olefins and Polyolefins senior vice president Bob Patel said the company is reorganizing its operations in Europe to increase its efficiency, reduce costs and improve competitiveness of its businesses.

"The closure of under-competitive assets, along with the restructuring and efficiency-improvement initiatives in our business areas, manufacturing and R&D, will better position LyondellBasell to compete in today’s economic environment," Patel added.

The company is planning to shut down the HDPE unit in the third quarter of 2013.