OXEA has approved a major expansion project at its manufacturing facility in Bay City, Texas, marking an important step in strengthening its global production network. The company has taken the final investment decision (FID) for the project, which is expected to be completed by the end of 2028.
The expansion will increase the site’s propionaldehyde production capacity while fully enabling existing propanol and butanol capacities. It will also generate additional feedstock for OXEA’s growing portfolio of carboxylic acids and create the foundation for future capacity additions at the Bay City complex.
As part of the project, OXEA has entered into a long-term agreement with Air Liquide for the supply of synthesis gas, or syngas, which is a key raw material used in the production of oxo chemicals. Under the agreement, Air Liquide will design, build and operate a dedicated syngas production unit at the Bay City site to ensure a reliable and efficient long-term supply.
The new unit will feature technology that allows carbon dioxide (COâ‚‚) generated during production to be recirculated into the reactor. This process is designed to optimise syngas composition, improve operational flexibility and help lower overall carbon emissions from the facility by reusing COâ‚‚ within the manufacturing process.
Michael McHenry, Chief Executive Officer of OXEA, said the investment reflects the confidence of the company’s shareholders in its long-term growth strategy and its commitment to customers around the world. He said the expansion will create a world-class supply platform capable of serving global markets for decades while strengthening the company’s leadership in oxo chemicals. He added that the project will also reinforce Bay City’s position as an important industrial hub capable of attracting future investments, strategic partnerships and regional economic growth.
Jorge Moshe Castro Roldan, Vice President of Global Procurement and Project Sponsor at OXEA, said the final investment decision represents both a strategic investment and a long-term commitment. He noted that the expansion will position the Bay City facility for future growth and further strengthen its role as one of the company’s key manufacturing locations worldwide.
The fully funded project has now entered the execution phase, which includes detailed engineering, procurement and construction activities. Preparations for the Air Liquide syngas unit are scheduled to begin during the third quarter of 2026, paving the way for construction and future commissioning.
Oxea is a global producer of oxo intermediates and performance chemicals, including alcohols, polyols, carboxylic acids, specialty esters and amines. These products are widely used in the manufacture of coatings, lubricants, cosmetics, pharmaceuticals, flavours, fragrances, printing inks and plastics. The company employs more than 1,200 people worldwide and supplies its products to customers in over 60 countries.
