Global Chemical Giants Accelerate Plant Closures and Capacity Rationalization in Europe and Asia-Pacific

A new round of deep adjustment swept the global chemical industry in July 2026, with leading companies in Europe, the US, and Asia implementing plant closures, capacity contractions, layoffs, and business restructuring. Europe emerged as the core region for capacity contraction. AGC Chemical initiated closure procedures for its Hillhouse technology park manufacturing site in Thornton Cleveleys, UK, affecting 190 employees, with production expected to cease by end-2026 after four consecutive years of losses. Dow announced plans to shut down two core production sites in eastern Germany in Q4 2027, including the Böhlen ethylene cracker and associated chlor-alkali and vinyl production lines, affecting approximately 550 employees in Germany, and will also close its 145,000 mt/year siloxane plant in Barry, UK. TotalEnergies plans to permanently close its Antwerp cracker in Belgium by end-2027, with capacity of 550,000 tons ethylene and 230,000 tons propylene per year. Shell will permanently shut down crackers in the Netherlands (575,000 mt/year) and Teesside, UK (865,000 mt/year). LyondellBasell plans to eliminate propylene oxide and styrene monomer production in the Netherlands and intends to sell four European olefins and polyolefins assets. In Asia-Pacific, South Korea's Ministry of Trade, Industry and Energy approved restructuring plans for the Yeosu petrochemical complex, with YNCC, Lotte Chemical, Hanwha Solutions, and DL Chemical to complete capacity optimization within three years, permanently shutting two ethylene plants totaling 1.39 million tons/year. YNCC will permanently close its 470,000 mt/year No. 3 ethylene plant and 920,000 mt/year No. 2 plant. Japan's chemical industry is pursuing business integration and plant shutdowns.