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South Africa's Sasol Restarts $13B Plastics Plant in the U.S., After Months-Long Shutdown

South Africa's Sasol Restarts $13B Plastics Plant in the U.S., After Months-Long Shutdown
Friday, 23 January 2026 11:10
  • Sasol restarted Louisiana plastics plant after extended late-2025 shutdown
  • Facility is part of $12-13 billion Lake Charles Chemicals Project
  • Lake Charles remains strategic to Sasol’s profitability and debt reduction

South African petrochemicals company Sasol said it restarted its plastics production plant in Louisiana in late December 2025 after an “extended shutdown” in the final quarter of 2025. The company disclosed the restart in its operational results for the six months ended Dec. 31, 2025, published on Thursday, Jan. 22.

Sasol said the facility is operated through its Louisiana Integrated Polyethylene JV LLC joint venture. The site processes light hydrocarbons into polyethylene, a plastic used in packaging, consumer goods and industrial equipment for the North American market.

The company said the restart took place before the end of the reporting period. It did not say how long the shutdown lasted, what caused it, or what work was carried out before operations resumed.

A major U.S. industrial project

The Louisiana plant is part of the Lake Charles Chemicals Project, a Sasol-led industrial development in the United States that the company has previously estimated at $12 billion to $13 billion.

The complex includes several units producing chemicals and plastics, with total annual capacity of more than 2 million metric tons, including about 900,000 metric tons of polyethylene.

The first units at the site came online in 2019, after construction began in the 2010s, marking the start of Sasol’s large-scale petrochemical operations in the United States.

Lake Charles is among Sasol’s largest investments outside South Africa, alongside its chemical operations in Europe and Asia.

Sasol operates the Lake Charles site with U.S. chemicals group LyondellBasell, which markets part of the polyethylene produced. Most volumes are sold in North America, with some sales into Latin America, Sasol said.

Sasol’s chemicals segment typically accounts for around 40% to 45% of revenue, depending on the year, alongside its energy business. The Lake Charles facilities operate under U.S. environmental rules enforced by the federal Environmental Protection Agency.

Sasol highlights strategic role of Lake Charles

Sasol has also positioned Lake Charles as a key asset in its efforts to strengthen its finances. The company reported net debt of $3.7 billion in 2025, down from $4.0 billion in 2024.

In January 2025, Ecofin Agency reported that Sasol intended to rely on its Lake Charles chemical plant to boost profitability and cash generation.

At the time, Chief Executive Officer Simon Baloyi said the company was studying options including a stock market listing or a merger of the asset with another entity. Sasol has not provided an update since then.

Abdel-Latif Boureima

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