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March 18 (Reuters) - LyondellBasell LYB.N said on Tuesday the chemical firm and Covestro have decided to permanently close the Propylene Oxide Styrene and Monomer production unit at the Maasvlakte site in the Netherlands.

The chemical industry has been grappling with weak demand and high input costs in Europe, and a challenging regulatory environment has further pressured companies to rethink their strategies in the region.

"The decision comes after thorough and careful consideration and is driven by the continued pressure on Maasvlakte's profitability due to global overcapacities, a strong increase of imports from Asia and high costs of European production," LyondellBasell said.

"Unfortunately, this situation is expected to continue, so longer-term profitable production is not anticipated," the company added.

Last year, LyondellBasell had launched a strategic review of its European assets of its Olefins & Polyolefins and Intermediates & Derivatives business units.

The company said it has taken the next step in evaluating the option to seek alternative ownership for the O&P sites in the strategic assessment.

(Reporting by Tanay Dhumal in Bengaluru; Editing by Krishna Chandra Eluri)

((Tanay.Dhumal@thomsonreuters.com; Twitter: https://twitter.com/TanayDhumal;))