The European chemical industry is in the midst of a significant transformation, driven by a perfect storm of weak demand, persistently high energy costs, lingering overcapacity, and the disruptive impact of geopolitical factors like new tariffs. These challenging conditions are forcing major players to make tough decisions, resulting in a wave of strategic divestitures and painful plant closures across the continent.
In fact, a recent study by Cefic found that in 2023 and 2024 alone, chemical companies announced the closure of more than 11 million metric tons per year of production capacity across 21 major European sites. Companies are actively shedding unprofitable assets and shutting down operations to streamline their portfolios and bolster resilience in a difficult market (Exhibit 1).
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