Around 9% of European chemical production capacity was earmarked to close between 2022 and 2025, according to the European Unions Critical Chemicals Alliance. The figure underscores the structural crisis facing the sector.
Producers are grappling with demand that has remained muted, global overcapacity that has depressed prices and energy costs that make European production expensive relative to other regions. Several producers have filed for insolvency, announced closures or shifted investments abroad.
The EU is assessing which assets could qualify for state support as it seeks to preserve strategic chemical production capacity. However, industry leaders argue that high energy costs and carbon taxes require structural policy responses beyond ad hoc support.
