Germany-based Oxea, a manufacturer of oxo chemicals, announced on July 9 a final investment decision to move forward with a major capacity expansion at its Bay City, Texas, manufacturing site, increasing production of key oxo chemical intermediates while positioning the facility for future growth.

According to the company, the project will expand propionaldehyde production capacity while fully enabling additional propanol and butanol capacity. The expansion also will increase feedstock availability for Oxea's carboxylic acids portfolio and strengthen supply for customers across its global markets.

The company said the investment is intended to strengthen long-term supply reliability by expanding production at one of its most feedstock-advantaged manufacturing sites on the U.S. Gulf Coast. Oxea also plans to continue developing the Bay City location as an industrial hub by attracting additional manufacturing and infrastructure investments.

To support the expansion, Oxea signed a long-term synthesis gas (syngas) supply agreement with Air Liquide, which will design, build and operate a dedicated onsite syngas production unit at the Bay City facility. The project is expected to be completed by the end of 2028, with site preparation scheduled to begin during the third quarter of 2026.

According to Oxea, the new syngas unit will incorporate carbon dioxide recirculation technology that returns CO₂ to the reactor to optimize syngas composition and production flexibility while reducing overall carbon emissions.

The announcement builds on Oxea's expanding partnership with Air Liquide. In May, the companies extended their synthesis gas and hydrogen supply agreement at Oxea's Oberhausen, Germany, production site through 2038. That agreement included Air Liquide's planned investment of more than €20 million (approximately $23 million) to modernize syngas and hydrogen infrastructure supporting Oxea's oxo chemicals production while improving long-term feedstock reliability.