Ineos Styrolution to close Sarnia, Ontario, styrene production site

Ineos Styrolution will permanently close its styrene monomer production site in Sarnia, Ontario, by June 2026.

The plant has been criticized for its alleged impact on the health of local residents. Officials with Ineos in Frankfurt, Germany, announced the closing June 11, shortly after the firm claimed it was being targeted by the Canadian government.

"This difficult business decision to permanently close our Sarnia site was made following a lengthy evaluation process and is based on the economics of the facility within a wider industry context," Ineos CEO Steve Harrington said June 11. "The long-term prospects for the Sarnia site have worsened to the point that it is no longer an economically viable operating asset."

He added that the plant is currently shut down "due to recent orders from regulatory authorities that forced us to declare force majeure. We are currently assessing what is required to restart the site—a process that could take approximately six months."

The decision to permanently close the plant "is irrespective of the current situation," Harrington said. "The economic reality is that we have made significant investments in the Sarnia site for many years to ensure safe and reliable operations."

"Additional large investments that are unrelated to the potential costs of restarting operations would be necessary. … Such investments would be economically impractical given today's challenging industry environment," he added.

Officials added that Ineos "understands the uncertainty the current temporary shutdown has presented … and appreciates the patience of its employees, contractors, customers, and partners."

"Looking ahead, [Ineos] will work closely with all necessary parties to complete an orderly wind-down process and a permanent closure of the site in a safe, responsible, and compliant manner," they added.

Officials also said that Ineos "is fully committed to the styrenics business and will continue to serve customers across the globe."

The Sarnia styrene plant was opened in 1943 by Canadian Polymer Crown Co. and was acquired by Ineos in 2014. The site employs more than 80 as well as a large number of contractors and has annual production capacity of about 950 million pounds.

The plant's use of benzene feedstock was the focus of recent criticism. Ineos officials had clarified that the plant doesn't make benzene, which is a by-product of gasoline production. The site converts benzene from local refineries into styrene monomer, a feedstock used to make polystyrene and other materials. Benzene is listed as a toxic substance in Canada and as a known carcinogen in the U.S.

Ineos temporarily closed the plant in April. Officials said the closing was for a maintenance issue, but the move followed reports of health issues among area residents. An April 20 report on the website of the Canadian Broadcasting Corp. said that the closure followed complaints from a nearby First Nation community whose members said they had become ill from the plant's emissions.

According to the CBC report, the nearby Aamjiwnaang First Nation has asked local government to close the plant after members who live in the area complained of health issues. The report added that test data indicated high levels of benzene in the air. A June 3 CBC report said Ineos had been ordered to remove benzene from the site, but a company spokesman said the firm needed more time to do so.

In a June 6 statement, Ineos said that the Sarnia site "has consistently operated" within regulatory limits set by the Petrochemical Industry Standard (PCIS) of Ontario's Ministry of Environment, Conservation and Parks (MECP) and that since 2019, additional measures have been introduced at the site that go beyond the PCIS for benzene.

"It is concerning to see misleading and false statements about our site being non-compliant," Ineos Styrolution spokesman Brian Lucas said June 6. "The people who work for our Sarnia site, live in the community with their children and families."

Ineos noted that three new government rules on benzene emission limits, established since April 18 without prior notice, decreased benzene emission limits by 90 percent. These regulations "apply solely to Ineos," officials said.

"Despite our history of compliance, confirmation that our monitors recorded no emissions outside our previously prescribed limits and being shut down since April 2024, we continue to receive new orders and notifications about emissions at our idle plant," the company said.

Officials added that, since April, "new limits … have been imposed retrospectively, without prior notice, consultation, justification or adequate implementation time."

"It is unconscionable for the MECP and ECCC to demand compliance with unsafe timelines and, essentially, the forced breaching of their own newly imposed regulations on our company," they said. "Despite our history of compliance, our company is being relentlessly targeted by Canadian government agencies."

Ineos Styrolution is a major global supplier of styrenic materials, including polystyrene and ABS. The firm employs more than 3,000 and has annual sales of around $7 billion.