Qenos Polyethylene Plant

Location - https://maps.app.goo.gl/Jgnb68P7UqYLVcqa7

Origins & Early Expansion:
The Altona Chemical Complex began operations in the early 1960s, leveraging feedstock from the nearby ExxonMobil Altona Refinery and Bass Strait gas fields. The Ole­fins plant across the road processed ethane into ethylene, while this Plastics plant (established in 1967) used low-pressure polymerisation to produce high-density polyethylene (HDPE).

Growth & Production:
Qenos (formed in 1999 from a merger of Kemcor and Orica’s plastic businesses) became Australia’s only full-range PE producer. Its Altona site spanned 100 hectares and operated 24/7. The facility supplied essential materials; HDPE used in dairy bottles, pipes, packaging (with capacity around 105 kT/year for Resins and 90 kT/year for Plastics). The site featured thorough environmental programs; by the early ’80s, waste-water re‑use eliminated creek discharge and significantly reduced water consumption.

Restructuring & Cuts:
In late 2000, Qenos shut this high-pressure PE unit and synthetic rubber plant for economic reasons. Production capacity was enhanced in the 2000s, but in May 2021, Qenos mothballed one of its two ethylene crackers and one of two PE lines (about a 15% output drop) after ExxonMobil announced the Altona oil refinery would close in 2020-21.

Financial Decline & Administration:
Despite various expansions, Qenos struggled; reporting losses of $320M in 2021 and $80M in 2022, hampered by high gas prices and lack of scale compared to Asian competitors. In April 2024, Qenos entered voluntary administration under McGrathNicol, as its Sydney site was permanently shut and Altona’s fate remained uncertain. These sites were sold to developer Logos, largely for their real estate value, with ongoing discussions about environmental remediation.

Impacts & Next Steps:
The scaling down in 2021 directly affected over 150 jobs at Altona, compounding losses since ExxonMobil’s refinery exit. Industry groups raised alarm; millions of dollars are required to modernise and sustain petrochemical operations in Australia. The Altona plant remains in “holding pattern” under administrators (April 2024), while environmental cleanup and future land reuse are still under negotiation.