South African petrochemicals group Sasol has restarted its plastics production facility in the U.S. state of Louisiana after an extended shutdown in late 2025, the company said, marking the resumption of operations at one of its largest overseas investments.
The restart took place in late December, before the end of Sasol’s reporting period, the company said in operational results for the six months to Dec. 31, published on Thursday. Sasol did not disclose the duration of the shutdown, its cause or the nature of the work carried out before production resumed.
The facility is operated through the Louisiana Integrated Polyethylene JV LLC, a joint venture that processes light hydrocarbons into polyethylene, a widely used plastic for packaging, consumer products and industrial applications. Output from the plant is mainly sold into the North American market, Sasol said.
The Louisiana site forms part of the Lake Charles Chemicals Project, a large-scale industrial complex that Sasol has previously estimated to cost between US$12 billion and US$13 billion. The project is one of the biggest foreign investments ever undertaken by the South African company and represents its flagship petrochemicals operation in the United States.
The Lake Charles complex includes several chemical and plastics units with combined annual capacity of more than 2 million metric tonnes. Of this total, around 900,000 tonnes is polyethylene capacity, according to the company.
Construction at the site began in the 2010s, with the first units coming online in 2019. The project marked Sasol’s entry into large-scale petrochemical manufacturing in the United States, leveraging low-cost U.S. shale gas feedstock to supply plastics and chemical markets.
Lake Charles is among Sasol’s largest assets outside South Africa, alongside its chemical operations in Europe and Asia. The company operates the site in partnership with U.S. chemicals group LyondellBasell, which markets part of the polyethylene production. While most volumes are sold within North America, some output is exported to Latin American markets, Sasol has said previously.
Sasol’s chemicals division typically contributes between 40 percent and 45 percent of group revenue, depending on market conditions, complementing its energy business. The Lake Charles facilities operate under U.S. environmental regulations overseen by the federal Environmental Protection Agency.
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The restart of the plastics plant comes as Sasol continues efforts to stabilise its operations and improve financial performance after several years marked by high capital expenditure, volatile commodity prices and operational challenges.
Sasol has repeatedly highlighted the strategic importance of the Lake Charles assets in strengthening cash generation and reducing debt. The company reported net debt of about $3.7 billion in 2025, down from roughly $4.0 billion a year earlier, according to its latest figures.
In January 2025, Sasol said it intended to rely more heavily on its U.S. chemicals business to support profitability and balance sheet repair. At the time, Chief Executive Officer Simon Baloyi said the company was evaluating strategic options for the Lake Charles assets, including a potential stock market listing or a merger with another entity.
Sasol has not provided an update on those plans in its latest statement, and did not indicate whether the extended shutdown of the plastics unit would have any material impact on its financial outlook.
The company did not respond immediately to requests for further comment on the reasons behind the shutdown or the operational status of other units at the Lake Charles complex.
Analysts say the performance of the U.S. chemicals business remains central to Sasol’s medium-term strategy, particularly as the company seeks to lower leverage and navigate a challenging global environment for chemicals and plastics, marked by fluctuating demand and margin pressure.
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While the restart signals a return to normal operations at the Louisiana plant, market participants will be watching closely for further disclosures on utilisation rates, maintenance costs and progress on any strategic transaction involving the Lake Charles assets.
