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NewsAdhesives and Sealants TopicsAdhesives & Sealants HeadlinesRaw Materials and Chemicals

OXEA Moves Ahead with Major Capacity Expansion at Texas Plant

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July 20, 2026

OXEA recently announced a final decision for a major capacity expansion at its Bay City, Texas production site. The company reports that the investment will expand OXEA’s core OXO technologies, increasing propionaldehyde capacity, fully enabling propanol and butanol capacities, key intermediates serving growing demand across OXEA's global customer base. It will also unlock feedstock availability for its carboxylic acids portfolio and position the site for future growth beyond targeted expansion capacities.

To support the expansion, OXEA has signed a long-term synthesis gas (syngas) supply agreement with Air Liquide. Under the agreement, Air Liquide will design, build, and operate a new, purpose-built on-site syngas unit at OXEA's Bay City facility, with full project completion expected by the end of 2028. The design of the new syngas unit will enable the recirculation of CO₂ back into the reactor to optimize syngas composition and production flexibility. By reusing CO₂ within the process, the facility will reduce overall carbon emissions and support a lower carbon, more environmentally sustainable operation.

By investing in additional capacity at one of the most feedstock-advantaged sites on the U.S. Gulf Coast, OXEA is positioning itself to reliably serve growing global demand while strengthening supply security for key customers.

“This investment demonstrates our shareholders' confidence in our strategy and our unwavering commitment to our customers. We are building a world-class supply platform at Bay City that will serve our markets reliably for decades to come. We are not just expanding capacity; we are strengthening the foundation for OXEA's long-term global leadership in oxo chemicals, and further establishing Bay City as a premier industrial park attracting future investment, strategic partnerships, and economic development for the region," said Michael McHenry, chief executive officer of OXEA.

With the final decision now confirmed and the project fully funded, OXEA has entered the execution phase, encompassing detailed engineering, procurement, and construction. Site preparation for the Air Liquide syngas unit is planned to begin in Q3 2026.

Learn more about Oxea at oxea.com.

KEYWORDS: expansion

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